Fitch in September 2023 carried out a thorough examination of United Bank for Africa, Ghana (UBA Ghana) Ltd., and affirmed its strong rating of Long-Term Issuer Default Rating (IDR) at “B-” with a stable outlook and Viability Rating (VR) affirmed at “CCC”.
The affirmation of UBA Ghana’s rating is based on a strong capital buffer and healthy liquidity. Despite the negative impact of the Domestic Debt Restructure (DDE) first phase and potential risk of growth in non-performing loans, UBA Ghana remains adequately capitalised to withstand any turmoil within the banking terrain.
Fitch’s analysis of UBA Ghana further indicated that despite the bank’s exposure to ongoing debt restructuring of Cocoa bills and Government of Ghana Eurobonds, the bank’s capital and liquidity will be able to withstand the impacts of this government debt restructuring.
Fitch affirmed UBA Ghana’s Shareholders Support Rating at “B” – revealing that although the sovereign default remains high, the bank remains attractive and its contribution to the Ghanaian market aligns with UBA’s pan-African agenda.
UBA Ghana Ltd. posted strong financials in H1 2023, with an improved liquidity ratio of 85.65% and a Capital Adequacy ratio of 19.46%. The bank’s deposits, as at H1 2023, grew by 20.85% to close at GH¢5.17bn against the prior year of GH¢4.28bn. This growth funded Total Assets growth of 21.41%, from GH¢5.63bn in H1 2022 to GH¢6.84bn in H1 2023.
The bank posted 156% Y-o-Y growth in Profit before Tax, from GH¢116m in H1 2022 to GH¢296m in H1 2023. This improvement is a result of efficiency and enhanced customer service.
The bank has led in many of the industry’s innovations. At the f the COVID pandemic peak, it introduced LEO – Ghana’s first virtual banker – on WhatsApp, Facebook and iMessage, and it’s soon to be deployed on two other channels subject to regulatory approval.
UBA Ghana is making financial inclusion a reality in Ghana, by supporting SMEs in expanding access to other markets of Africa through partnerships with the United National Development Programme (UNDP), Africa Continental Free Trade Area (AfCFTA) and Pan-African Payment and Settlement System (PAPSS).
UBA Ghana is a subsidiary of United Bank for Africa Plc, a leading pan-African financial institution offering banking services to more than thirty-seven million customers across over 1,000 business offices, customer touch points in 20 African countries, and operating in 4 continents.
With a presence in New York, London, Paris and UAE, UBA is connecting people and businesses across Africa through Retail, Commercial and Corporate Banking; innovative cross-border payments and remittances; trade finance; and ancillary banking services.
