UBA announces slowing down on Africa expansion
United Bank for Africa has been aggressively expanding across the region with merger plans in 19 different countries in Africa. However, UBA said that it would slow down its expansion plans, reported Ventures Africa. The move was seen to be favorable in funding power projects in Nigeria.
UBA’s Managing Director/Chief Executive Officer Phillips Oduoza said during the Reuters Africa Investment Summit, “We were expanding very rapidly and we initially thought we would expand further in Africa, but we’ve decided to stop and focus on consolidation.”
Oduoza added, “Africa outside Nigeria is currently a fifth of UBA’s business, but within the next three years it would be half.” He also said that the company’s funding in industries including power and infrastructure would need long term investments and would only be achieved through deposit growth instead of loans or equity.
In 2013, UBA has recorded increased profits, reported Ventures Africa. The company’s profit growth was driven by 25 percent from USD10.9 billion to USD13.5 billion. UBA’s risk asset expansion also increased by 40.5 percent, said a report from Ventures Africa.