UNITED BANK FOR AFRICA PLC

Interim Consolidated and Separate Financial

Statements for the Period Ended 30 June 2023

Africa's Global Bank

Tax Identification Number : 01126011-0001

Contents

Note

Page

i

Directors' Report

3

ii

Complaints and Feedback

9

iii

Corporate Governance Report

11

iv

Report of the Statutory Audit Committee

19

v

Statement Of Directors' Responsibilities In Relation To The Preparation Of

20

Financial Statements For The Period Ended 30 June 2023

vi

Statement Of Corporate Responsibility For The Financial Statements For The

21

Period Ended June 30, 2023

vii

Independent Auditor's Report

22

viii

Consolidated and Separate Statements of Comprehensive Income

29

ix

Consolidated and Separate Statements of Financial Position

30

x

Consolidated and Separate Statements of Changes in Equity

31

xi

Consolidated and Separate Statements of Cash Flows

33

Notes to the Financial Statements

32

1

General Information

34

2

Basis of preparation

34

3

Significant accounting policies

34

3.1

Basis of measurement

34

3.2

Functional and presentation currency

34

3.3

Use of estimates and judgements

34

3.4

Basis of consolidation

34

3.5

Foreign currency transactions and balances

36

3.6

Interest income and interest expense

37

3.7

Fees and commission income and expenses

37

3.8

Net trading and foreign exchange income

37

3.9

Dividend income

37

3.10

Income tax

38

3.11

Cash and bank balances

38

3.12

Financial assets at fair value through profit or loss

38

3.13

Derivative financial instruments

38

3.14

Property and equipment

38

3.15

Intangible assets

39

3.16

Impairment of non-financial assets

40

3.17

Non Current Assets Held for Sale

40

3.18

Repossessed collateral

40

3.19

Deposits and debt securities issued

40

3.20

Provisions

41

3.21

Financial guarantee contracts

41

3.22

Employee benefits

41

3.23

Share capital and reserves

42

3.24

Earnings per share

42

3.25

Fiduciary activities

42

3.26

Stock of consumables

42

3.27

Segment reporting

43

3.28

IFRS 15: Revenue from contracts with customers

43

3.29

IFRS 9: Financial instruments

43

3.31

IFRS 16: Leases

50

3.32

Changes in accounting policies

50

3.33

Standards and interpretations issued/amended but not yet effective

52

3.34

Rounding of amounts

52

4

Financial risk management

53

5

Capital

96

6

Fair value measurement

97

7

Offsetting of financial instruments

105

Note

Page

8

Critical accounting estimates and judgements

106

9

Operating segments

108

10

Interest income

111

11

Interest expense

111

12

Impairment charge for credit losses on financial assets

111

13

Fees and commission income

112

14

Fees and commission expense

112

15

Net trading and foreign exchange income

112

16

Other operating income

112

17

Employee benefit expenses

112

18

Depreciation and amortisation

113

19

Other operating expenses

113

20

Income tax

114

21

Earnings per share

115

22

Cash and bank balances

115

23

Financial assets at fair value through profit or loss

115

24

Asset under management

115

25

Loans and advances to banks

116

26

Loans and advances to customers

116

27

Investment securities

120

28

Other assets

121

29

Investment in equity-accounted investee

121

30

Investment in subsidiaries

122

31

Property and equipment

126

32

Intangible assets

128

33

Deferred tax assets and liabilities

132

34

Derivative financial instruments

133

35

Non current assets held for sale

134

36

Deposits from banks

135

37

Deposits from customers

135

38

Other liabilities

135

39

Borrowings

136

40

Statement of cash flow reconciliation

139

41

Capital and reserves

141

42

Dividends

142

43

Contingencies

142

44

Related Parties & Insider Related Credits

143

45

Compensation to employees and directors

146

46

Non-audit services

147

47

Compliance with banking regulations

147

48

Events After Reporting Date

147

49

Securities Trading Policy

147

50

Free Float Declaration

147

51

Condensed results of consolidated subsidiaries

148

Other national disclosures:

153

Value Added Statement

154

Five-year financial summary

155

DIRECTORS' REPORT

The Directors present their report together with the audited financial statements of UBA Plc ("the Bank") and its Subsidiaries (together "the Group") for the period ended 30 June 2023.

1 Results at a Glance

Group

Bank

Jun-23

Jun-22

Jun-23

Jun-22

(N'Million)

(N'Million)

(N'Million)

(N'Million)

Profit before tax

403,647

85,750

344,185

42,823

Income tax expense

(25,412)

(15,415)

(6,803)

(1,393)

Profit after tax

378,235

70,335

337,382

41,430

Profit Attributable to:

Equity holders of the Bank

374,365

67,687

337,382

41,430

Non-controlling interests

3,870

2,648

-

-

Earnings Per Share:

Basic & Diluted

10.95

1.98

9.87

1.21

  1. Dividend
    The Directors, pursuant to the powers vested in it by the provisions of Section 379 of the Companies and Allied Matters Act (CAMA) of Nigeria, propose an interim dividend of N0.50 per share (30 June 2022: N0.20 per share) from the retained earnings account as at 30 June 2023. This proposed interim dividend amounting to a pay-out ratio of 7.3% (30 June 2022: 2.9%), and a yield of 3.65%.
  2. Legal form
    United Bank for Africa Plc was incorporated in Nigeria as a limited liability company on 23 February 1961, under the Companies Ordinance [Cap 37] 1922. It took over the assets and liabilities of the British and French Bank Limited, which had carried on banking business in Nigeria since 1949. UBA merged with Standard Trust Bank Plc on 01 August, 2005 and acquired Continental Trust Bank Limited on 31 December, 2005.
  3. Major activities & business review
    UBA Plc is engaged in the business of banking and caters for the banking needs of Institutions, Corporate, Commercial and Consumer customer segments, providing trade services, remittance, treasury management, custody/investor services, digital and general banking services. Pension custody services are offered through its subsidiary.
    A comprehensive review of the business for the period and the prospects for the ensuing year is contained in the CEO's report section of UBA's most recent annual report.
  4. Directors

NAME

DESIGNATION

Mr. Tony Elumelu, CFR

Chairman

Mrs. Owanari Duke

Independent Non-Executive Director

Ms. Angela Aneke

Independent Non-Executive Director

Erelu Angela Adebayo

Non-Executive Director

Dr. Kayode Fasola

Non-Executive Director

Mr. Abdulqadir J. Bello

Non-Executive Director

Ms. Aisha Hassan Baba, OON

Independent Non-Executive Director

Mrs. Caroline Anyanwu

Non-Executive Director

Mr. Oliver Alawuba

Group Managing

Director/CEO

Mr. Muyiwa Akinyemi

Deputy Managing

Director

Ms Emem Usoro

Executive Director, North Bank

Ms Sola Yomi-Ajayi

Executive Director, International Banking

Mr. Ugochukwu Nwaghodoh

Executive Director, Finance and Risk Management

Mr. Alex Alozie

Executive Director, Group Chief Operating Officer

Mrs. Abiola Bawuah (1)

Executive Direct

or/CEO, UBA Africa

(1) Appointed to the Board on January 3, 2023

3

Directors' Report - Continued

6 Directors' interests

The interest of directors in the Issued share capital of the Bank as recorded in the register of directors' shareholding and/or as notified by the directors for the purpose of Sections 275 and 276 of the Companies and Allied Matters Act and the listing requirements of the Nigerian Stock Exchange is as follows:

30-Jun-23

31-Dec-22

Name

Direct holding

Indirect holding

Direct holding

Indirect holding

Mr. Tony Elumelu, CFR

194,669,555

2,332,702,730

194,669,555

2,185,934,184

Mrs. Owanari Duke

86,062

-

86,062

-

Ms. Angela Aneke

-

-

-

-

Erelu Angela Adebayo

163,803

-

163,803

-

Dr. Kayode Fasola

100,000

-

100,000

-

Mr. Abdulqadir J. Bello

130,000

-

130,000

-

Mrs. Aisha Hassan Baba, OON

-

-

-

-

Mrs. Caroline Anyanwu

1,243,669

-

993,669

-

Mr. Oliver Alawuba

14,516,953

-

1,593,248

-

Mr. Nwaghodoh Ugochukwu Alex

12,233,004

5,399,816

Mr. Muyiwa Akinyemi

4,728,245

2,728,245

Ms. Sola Yomi - Ajaiyi

-

-

Mr. Alex Alozie

-

-

Ms. Emem Usoro

694,125

693,550

Mrs. Abiola Bawuah*

2,684,781

2,684,781

*Appointed to the Board on January 3, 2023

Details of indirect holdings

Name of Director

Companies

Indirect

Holding

HH Capital Limited

287,612,362

Mr. Tony O. Elumelu, CFR

Heirs Holdings Limited

1,814,003,900

Heirs Alliance Limited

231,086,468

2,332,702,730

7 Analysis of shareholding

The details of shareholding of the Bank as at 30 June, 2023 is as stated below;

Headline

Shareholders

Holdings

Range

Count

Cumulative

Count (%)

Aggregate

Cumulative

Aggregate

Count

Holdings

Holdings

Holdings (%)

1 - 1,000

33,995

33,995

12.34

15,314,184

15,314,184

0.04

1,001 - 5,000

120,380

154,375

43.69

300,609,142

315,923,326

0.88

5,001 - 10,000

44,721

199,096

16.23

306,281,997

622,205,323

0.90

10,001 - 50,000

53,858

252,954

19.55

1,124,137,785

1,746,343,108

3.28

50,001 - 100,000

10,633

263,587

3.86

722,179,256

2,468,522,364

2.11

100,001 - 500,000

8,970

272,557

3.26

1,832,027,753

4,300,550,117

5.36

500,001 - 1,000,000

1,322

273,879

0.48

933,253,880

5,233,803,997

2.74

1,000,001 - 5,000,000

1,223

275,102

0.44

2,406,792,397

7,640,596,394

7.04

5,000,001 - 10,000,000

165

275,267

0.06

1,141,218,869

8,781,815,263

3.04

10,000,001 - 50,000,000

157

275,424

0.06

3,131,758,039

11,913,573,302

9.16

50,000,001 - 100,000,000

33

275,457

0.01

2,224,797,894

14,138,371,196

6.51

100,000,001 - 500,000,000

35

275,492

0.01

10,245,978,774

24,384,349,970

29.96

500,000,001 - 1,000,000,000

8

275,500

0.00

5,402,129,555

29,786,479,525

15.80

1,000,000,001 and Above

3

275,503

0.00

4,412,941,841

34,199,421,366

12.90

TOTAL

275,503

100

34,199,421,366

100

4

Directors' Report - Continued

8

Substantial interest in shares: shareholding of 5% and above

According to the Register of Shareholders as at 30 June, 2023, no shareholder held more than 5% of the share capital of

the Bank except the following;

Shareholders

Holding

Holding (%)

Heirs Holdings Limited

1,814,003,900

5.30%

9

Trading in the shares of UBA

A total of 3.88 billion units of UBA shares were traded on the Nigerian Exchange Limited (NGX) in H1 2023, representing

11.4% of the shares outstanding. In the first six months of the year 2023, the Nigerian equities market recorded its best

performance in 16 years. Specifically, the All Share Index (ASI) of the NGX appreciated by 18.96%, with shares of UBA

closing the period at N12.25. The positive sentiment among investors can be attributed to several factors, including the

peaceful transition to power following the 2023 elections, market-friendly policies introduced by the new administration

such as the removal of fuel subsidies, streamlining of exchange rates, and the floating of the naira.

10

Acquisition of own shares

The Bank did not purchase its own shares during the period. Also, the Group has a Board approved Global Personal

Investment Policy, which covers directors, staff, and related parties. The policy prohibits employees, directors and

related individuals/companies from insider dealings on the shares of UBA Plc and related parties. The essence of the

policy is to prevent the abuse of confidential non-public information that may be gained during the execution of UBA's

business. In addition, the policy serves to ensure compliance with the local laws and/or regulatory requirements. In

accordance with the NSE Rule Book and Amendments to the Listing Rules, UBA observes closed periods, within which

affected persons/corporates are restricted from trading on the shares of the Bank. There was no case of violation within

the period under review.

11

Donations

As a part of our commitment to the development of host communities, the environment and broader economy within

which we operate, across the Group, a total of N721,000,000.00

(Seven Hundred and Twenty-One Million Naira only)

(Bank: N695,000,000.00) was given out as donations and charitable contributions for the period ended 30, June 2023

(HY2022: Group-N695mn,Bank-N652mn), through UBA Foundation.

12

Management Shared Services Arrangement

There exist a management shared services arrangement between UBA Plc and its subsidiaries within the UBA Group.

These shared services are classified under three (3) broad categories: centralised executive management services, intra-

group support services and information technology (IT) services. These services are in line with the approved services in

Section 5.1 of CBN guidelines for shared services arrangements for banks and other financial institutions

The shared services being provided by UBA Plc provides the Group with economic and commercial benefit due to the fact that, given the same circumstances, an independent person in a similar circumstance would be willing to pay for similar services if provided by another independent party or would have performed the activity in-house for itself. The shared services are necessary to achieve the following benefits enjoyed by the Group members during the year:

1. Ensuring uniformity and standardisation of business processes within the Group

2. Achieving cost and operational efficiency

3. Exploiting economies of scale and global corporate efficiency for commonly required services.

The Bank has a Group transfer pricing policy which documents the details of the shared services and the functions performed by the Bank and the regional offices to the subsidiaries, in line with the shared services agreement. The cost of providing these services is allocated proportionately to the relevant beneficiaries using predetermined allocation keys.

5

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United Bank for Africa plc published this content on 12 September 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 September 2023 13:31:02 UTC.