UBA Sierra Leone Records Outstanding Performance in 2023 Financial Year.

UBA Sierra Leone Records Outstanding Performance in 2023 Financial Year.

Highlights:

Income Statement

• 68% Year on Year (YoY) growth in Gross Earning to SLE721 million from SLE 427 million in 2022.
• 79.9% YoY Growth in Profit Before Tax and Profit After Tax to SLE 487.8 million and SLE365.6 million from SLE271 million and SLE203 million respectively in 2022.
• Improved Cost-to-Income Ratio of 23.6% compared to 28.0% in 2022FY.
• Return on Average Equity (RoAE): 73.1%; compared to 52.2% in 2022FY.
• Increased Corporate Income Tax payment obligation of SLE122 million in 2023 from SLE67.9 million in 2022.

Balance Sheet

• 38% YoY Growth in Total Assets to SLE4.11 billion from SLE2.97 billion 2022.
• 80% YoY Growth in Net Loans to SLE465.2 million from SLE258.1 million.
• 37.5% YoY Growth in Customer Deposits to SLE2.86 billion from SLE2.08 billion in 2022.
• 27% YoY Growth in Shareholders’ Funds to SLE559.5 million from SLE439.9 million in 2022.

UBA Sierra Leone has received the “No Objection” approval from the Bank of Sierra Leone (BSL) to publish its audited financial statement for the year ended 2023. The financial statement was approved by the Bank’s Board of Directors on 28^th March 2024.

The year 2023 has been great for the bank as we achieved remarkable performance in the financial year. UBA Sierra Leone

despite global and domestic economic challenges, achieved remarkable performance in the financial year, demonstrating significant improvements across all indices.  UBA Sierra Leone reported a notable Profit Before Tax (PBT) of SLE 487.8 million and Profit After Tax (PAT) of SLE 271 million, representing a year-on-year growth of 79.9%. Furthermore, the Bank’s corporate tax responsibility to the Government increased to SLE 122 million from SLE 67.9 million in 2022. The improved profit performance also led to an average return on equity of 73. % compared to 52.2% in 2022.

Gross earnings witnessed a substantial increase of 68% in 2023, resulting in a year-on-year rise in net interest income by 68.2%, from SLE 278.9 million to SLE 469.3 million. The Bank capitalized on its transaction banking channels, digital banking products, trade, and foreign exchange offerings to drive a 72.5% growth in non-interest income from SLE 102.7 million to SLE 177.2 million. UBA Sierra Leone aims to leverage its alternative channels for continued growth in non-interest income and gross earnings in the medium term.

The Bank experienced a 42.4% increase in operating expenses in 2023 due to the growth in our business operations, general inflationary trends, and its commitment to maintaining personnel satisfaction. However, despite the increase, the Bank performed better in it cost-to-income ratio from 28.0% in 2022 to 23.6% in 2023, primarily driven by increase in revenue. UBA Sierra Leone anticipates sustaining this improvement through increased digitalization of products and services as well as various process improvement initiatives.

The bank concluded the 2023FY with a balance sheet size of SLE4.11 billion, reflecting a 38% growth compared to SLE2.97 billion in 2022. The growth was primarily driven by increased customer deposits, which grew by 37.5% to SLE 2.86 billion by the end of the year, leveraging the Bank’s digital capabilities in providing round-the-clock service through electronic channels.

In the area of risk assets, UBA Sierra Leone increased its loan portfolio by 80% to reach SLE 465.2 million in 2023, compared to SLE 258.1 million in 2022 with a non-performing loan ratio of 1.64%. This growth enables the Bank to continue supporting its customers and their businesses.

UBA Sierra Leone maintains capital adequacy ratio of 85.4% (compared to 82.9% in 2022), well above the regulatory minimum of 15%. The Bank remains well positioned to drive financial inclusion in Africa through its innovative products and extensive network, leveraging its strong capital buffer and internally generated earnings.

“This remarkable financial performance in 2023, further consolidates our position as a leading and dominant financial services provider in Sierra Leone. It also aligns with the vision and strategic objective of UBA Group to be market leader in all countries we operate in. UBA Sierra Leone remains well positioned to continue driving financial inclusion through innovative products, excellent customer service delivery and our extensive global network” says, Mohamed Alhajie Samoura MD/CEO UBA Sierra Leone.

UBA Sierra Leone: Embracing Digital Transformation and Customer-Centricity

As a subsidiary of the UBA Group, UBA Sierra Leone is committed to the UBA Group 4.0 direction, focusing on a customer-centric philosophy, strategic product and service implementation, sustainable growth strategies, operational excellence, and digital transformation. The Bank has adhered to the Project Alpha Initiative: 2021-2023, a three-year strategic plan outlining business goals in attaining industry leadership across various parameters.

Industry Leadership and Digitalization

Moving forward, UBA Sierra Leone seeks to maintain industry leadership by expanding its customer base and embracing digitalization. Recognizing the importance of technology in driving business, the Bank aims to provide customers with the convenience of banking anytime, anywhere. The Bank’s virtual banker, LEO, an Artificial Intelligence (AI) bot, offers interactive and user-friendly banking solutions, allowing customers to send money to UBA bank accounts, prepaid cards, and other financial institutions through various social media platforms. The bank plans to continue enhancing its digital offerings to further enhance the banking experience of its customers.

Innovative Partnerships and Awards

In May 2023, UBA Sierra Leone announced the relaunch of its UBA NextGen Product and appointed George Menelik Benjamin (AKA Drizilik), a renowned Sierra Leonean artist, as the official brand ambassador for UBA NextGen and Leo Retail Banking Products. This collaboration between artistry and innovation aims to inspire young people in Sierra Leone and around the world to adopt banking as a way of life. Drizilik, a multi-award-winning singer and rapper, has been promoting the features of UBA Leo and NextGen Accounts across various social media platforms.

UBA Sierra Leone received several major awards in 2022/2023, including The Banker’s Bank of the Year 2022 and 2023 from the Financial Times of the United Kingdom, the National Climate Change Partnership Award, the National Development Award for Exceptional Bank of the Year in Digital Services and Financial Inclusion, and the Business Excellence Award for corporate excellence and socio-economic growth in Sierra Leone.

Local Representation and Leadership

Bank of Sierra Leone approved Mohamed Alhajie Samoura as Managing Director/CEO of UBA Sierra Leone. On 30th January 2024: United Bank for Africa (UBA) Sierra Leone Limited announced the approval of Mohamed Alhajie Samoura by the Central Bank of Sierra Leone as the substantive Managing Director/ Chief Executive Officer of UBA Sierra Leone.

The “No Objection” approval was received from the Bank of Sierra Leone on 30th January 2024 following the approval of his nomination by UBA Group Office and the UBA Sierra Leone Board of Directors in December 2023. Having served as the Acting MD/CEO, Mohamed is the first Sierra Leonean to attain such position in the bank since the bank started it operations in Sierra Leone in 2008.

Mr. Samoura is the 6th MD/CEO of UBA Sierra Leone after his predecessor, Usman Isiaka who is now serving the bank as Deputy MD/CEO of UBA New York.

Since he assumed the seat, Mr. Samoura has continued to build on the legacies of his predecessors, he continues to double the figures in revenue, profitability, deposits, account opening and risk assets. He is very passionate about the UBA Brand and has been an exceptional promoter of Sierra Leonean businesses.

Until his appointment as the substantive Managing Director /Chief Executive Officer of UBA Sierra Leone, he was the Executive Director, Business Development in the bank, and Acting MD/CEO UBA Sierra Leone. Mohamed is a seasoned banker with close to two decades of working experience in Sierra Leone banking industry. 

The appointment of Mr. Samoura as Managing Director is in line with the UBA Group’s strategic focus on domesticating the bank’s governance, products and services to meet the local requirements of the host economy in all its 20 presence countries in Africa and further supporting human capital development across the continent as we expose the local staff to international standards and global best practices.

Global Presence and Vision

United Bank for Africa (UBA) is a leading financial institution operating in 20 African countries, the UK, USA, France, and the UAE. The bank provides a wide range of banking services, including retail, corporate, commercial, and institutional banking, while promoting financial inclusion and leveraging cutting-edge technology. UBA is one of the largest financial institution in Africa and aims to be the dominant financial service institution in the banking sector. As UBA celebrates its 75th anniversary group-wide, UBA Sierra Leone marks 15 years of providing excellent customer service. For 75 years, UBA has remained a strong brand known for innovation, agility, service excellence, and value creation, maintaining its dominance in the global financial sector across Africa and beyond.