Business
UBA Adopts Holding Company Model
United Bank for Africa Plc (UBA) on Monday announced the implementation of an innovative holding company structure that will drive operational efficiency, support its ambitious growth strategies and be a significant driver of shareholder value, while complying with the guidelines mandated by the Central Bank of Nigeria (CBN) for the separation of banking and non-banking financial service businesses.
The new structure streamlines the group’s operating model, permitting the UBA Group to better serve key market segments, providing superior and evermore personalised services to customers and driving value for shareholders. The new holding company will ensure strategic, operational and brand synergies are maintained, whilst underlining renewed management focus on all customer segments.
Under the new structure, UBA Holdings Plc (UBA Holdings) will be established as the group parent, listed in Lagos with three operating subsidiaries – UBA Plc, which will remain listed, UBA Capital and UBA Africa. UBA Properties, the Group’s real estate operations will be spun off to shareholders as a separate listed entity, offering an immediate and tangible example of the Group’s commitment to identify and realise value for its shareholder base. UBA Plc, which in line with the new CBN guidelines will hold an international bank licence, remains the flagship business of the group.
It will provide banking services to customers within Nigeria and in key international locations, including New York, London and Paris. UBA Plc will continue to leverage its large network of branches (700) and an innovative suite of e-banking products to serve its over 7.5 million customer accounts spread across Nigeria.
UBA Capital will encompass all the non-bank financial services businesses of the group. These businesses, which have been providing synergistic benefits to the group, include Asset Management, Stock-Broking, Insurance Broking, Trusteeship, Investment Banking and Company Registrar Services.