UBA’s diversified businesses hedge risks

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 of 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, made this statement and emphasised that because of its extensive network and reach, the banking group is strengthened and largely insulated from challenges that have become common among financial institutions on the continent.

Alawuba was speaking in an exclusive interview with pressmen outside of the four-day UBA Group International Banking Conference, which was organised and hosted by UBA America and took place in New York.

Alawuba outlined the problems that face banks and financial institutions in Africa and beyond, such as operational risks, market risks, and credit risks, and said that because of UBA’s extensive foray into important markets, the bank has put in place solutions to help mitigate losses caused by such risks.

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 leverage and provides business resilience. Furthermore, our presence in global financial centres such as New York, Paris, and London provides 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 was intended to provide solutions, noting that African banks had the chance to network, exchange experiences, and acquire practical techniques to deal with the continent’s significant financial issues. Senior delegates from top African banks, sovereigns, central bankers and significant participants in the global financial scene converged at the well-attended event.