UBA branch in Community Area, Nairobi. PHOTO | FILE
Nigerian-based, United Bank of Africa (UBA), recorded losses for the fifth year in a row since its entry into the country, resulting in accumulated losses exceeding Sh1 billion.
The bank sunk deeper in the red with a Sh282 million loss compared to Sh272 million loss in 2013 piling its cumulative losses to Sh1.27 billion.
Owners of the lender have continually pumped cash in the bank as accumulated losses eat into its core capital.
Last year they injected additional funds with its paid-up capital up by Sh275 million to Sh1.5 billion. The new capital enabled its core capital to remain above the statutory minimum of Sh1 billion.
UBA has changed its top management thrice as it seeks to crack the Kenyan market following entry in 2009. Last year it poached Isaac Mwige from Equity Bank where he was director of relationship banking to be the first local to head the bank.
The bank’s loan book shrunk to Sh734 million from Sh789 million. Its customer savings rose by Sh1.1 billion to Sh3.5 billion.
It kept a lid on interest paid to depositors leading to a drop in interest expenses despite growth in savings. This resulted in a marginal growth in net interest income.
The bank has a wide presence in Africa and operates branches in New York and London.
The Kenyan unit has high liquidity ratios, at 96 per cent compared to statutory 20 per cent, an indication of underutilisation of mobilised cash.
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