United Bank for Africa (UBA) expects loan growth of 10 to 15 per cent this year, which will reverse the 3.3 percent decline last year, the bank said.
UBA had originally forecast loan growth last year of between 5 and 8 percent, but that figure did not materialise as loans grew by 14 percent in 2014.
“Because of uncertainty in the macro-environment we decided to be very cautious in the growth of risk assets,” Chief Executive Phillips Oduoza, who is due to retire by July said, explaining the drop in loans last year.
“For this year we see a positive outlook but we will continue in our conservative approach to risk creation.”
UBA released its 2015 financial results some days back Beating Expectations as Net Income Up 24.53%. The lender’s upward trajectory in noninterest income were supported by growing fees from e-banking (Cards, web and mobile banking, PoS and other e-commerce), remittance services, as well as treasury activities.
The CEO, commented on the result saying that the 2015 profit was a new high, as it reflected the hard work and discipline of the Board, Management and Staff in creating value for all stakeholders.
“We remain committed to growing in a responsible manner that aligns with our vision of building an enduring institution.”
He said the bank’s resilient business model, geographic diversification, proactive strategies, and strong governance created an edge for it through the year.
Read more in Reuters
