According to United Bank for Africa (UBA) Plc, the Group is in a better position to better manage business risks resulting from the financial, economic, and political environment because to its diversified business model in important international markets on the continent and around the world.
Oliver Alawuba, the UBA Group Managing Director and Chief Executive Officer, said this recently and emphasized that the banking group is strengthened and largely insulated from internal and external challenges that have become common among financial institutions on the continent due to its broad reach and network. Alawuba was speaking in an exclusive interview with pressmen outside of the four-day UBA Group International Banking Conference, which took place in New York between October 17 and October 21, 2022, and was organized and hosted by UBA America.
Alawuba emphasized the various issues that face banks and financial institutions in Africa and beyond, such as operational risks, market risks, and risks related to credit. He added that because of UBA’s extensive foray into important markets, the bank has put in place solutions that address these issues.
There are several challenges for Nigerian and African banks such as issues of payments, currency depreciation amongst others, but over the years, at UBA, we have developed the capacity to effectively manage these risks whilst we continue to pursue our growth strategy.
Futhermore, he said, “UBA is a diversified institution in terms of the businesses and sectors we support. Some of the countries where we are present, like Zambia, Guinea and Mozambique have not witnessed currency depreciation, and so, the diversified nature of our business is a key positive. It gives us the leverage and provides business resilience. Furthermore, our presence in global financial centres such as New York, Paris, and London provide further diversification of revenues and hedges against devaluation on the African continent. UBA America has been providing banking services to African institutions for over three decades, we know Africa very well and understand how to mitigate the risks of doing business in Africa.”
The Group CEO went on to say that the International Banking Conference sought to provide solutions, noting that African banks had the chance to network, exchange experiences, and acquire practical techniques to deal with the continent’s major financial issues. Senior officials from top African banks, sovereigns, central bankers, and important figures in the world financial landscape converged at the well-attended event.