United Bank for Africa has reiterated its commitment to sustain net interest margin at a minimum of 6.3 per cent in 2016.
The bank’s Group Managing Director Designate, Mr. Kennedy Uzoka, said this during the presentation of 2016 Strategic Imperatives and Earning Guidance at the Investors and Analysts Conference in Lagos.
The UBA Group had last week released its audited 2015 financials announcing N69 billion profit before tax, representing a 22 per cent year-on-year growth.
“We will leverage on our balance sheet optimization initiatives, to further improve asset yields. Interestingly, our improving deposit mix and funding cost will enhance our ability to sustain our net interest margins,” Uzoka said.
He noted that despite the external cost pressures, UBA Group would remain committed to its cost efficiency initiatives. He emphasised that UBA will keep its cost growth below inflation rate and further moderate the cost-to-income ratio to a level below 65 per cent.
“Whilst we are not completely immune to the impact of macroeconomic pressures on risk assets, we are confident in the quality of our portfolio. We are working closely with our customers and will continue to proactively monitor developments in the global and domestic economic environment to address its probable impact of our portfolio.
“ We will defend our asset quality to keep non performing loans ratio below 2.5% as we believe cost of risk should remain around 1% in 2016,” said Uzoka who takes over the mantle of leadership of the bank from August 1, 2016,” he said.
The incoming CEO, also used the opportunity to inform investors and analysts from Nigeria and around the world that UBA Plc will grow customer deposits book across its 19 African subsidiaries by 10 per cent to 15 per cent.
“We remain cautiously optimistic and will maintain our moderate risk appetite. Hence, we expect the loan book to also grow in the early teens of between 10 per cent and 15 per cent,” Uzoka said.
The Group Managing Director, Mr. Phillips Oduoza, who also used the occasion to formally present Kennedy Uzoka to the investing community, said Kennedy’s appointments is an attestation of the efficacy of the.