Union Bank of Nigeria Plc, H1 2012
Facts Behind the Figures
Funke Osibodu
Group Managing Director/Chief Executive
Outline
1
Overview of UBN
2
The Group- Business Divisions & Subsidiaries
3
Branch Footprint
4
5
6
7
8
9
10
Rescue and Reposition Strategy
Our Transformation Journey So far…
UBN Historical Performance
UBN Ratios
H1 2012 Results & Position Assessment
New Core Investors, Board & Management
Going Forward Strategy
2
Overview Of UBN
–Established as Colonial Bank in 1917; later acquired by and re-named
to Barclays Bank in 1925; became Union Bank of Nigeria in 1979
–Listed on the Nigeria Stock Exchange in 1971
–Has the third largest branch network in Nigeria with 349 branches
 Key strengths
–Iconic, trusted household brand
–Low cost and stable deposit base
–Pan Nigerian branch network
–Banks most of the largest and prominent domestic corporates in
Nigeria
3
Business Divisions
UBN
Retail Banking
Asset Management
Treasury & Investment
Banking
Insurance
Corporate Banking
Other Group
Companies
8 Subsidiary Entities/4
Associated Companies
4
UBN Subsidiaries
 UBN subsidiaries include:
S/N
Subsidiary
Nature of Business
1
Union Bank, UK
Commercial Banking
2
Union Capital Markets
Stock brokerage & Investment Banking
3
Union Homes Savings &
Loans
Mortgage Banking
4
Union Trustees
Trusteeship & Asset Management
5
Union Assurance Company
Insurance
6
UBN Property Company
Real Estate Development & Facility Management
7
Union Registrars
Registrars
8
Union Pensions
Pension Custodian
 UBN has requested for regulatory forbearance with compliance with CBN Regulation 3 of
2010 that
restricts the scope of banking activities
 This is to allow for the input of core investors given the ongoing ownership and board
changes
5
UBN Branch Footprint
Extensive Distribution/ Branch Footprint(1)
 UBN’s far-reaching network of ~350(1) branches that caters for both rural and sub-urban
regions in Nigeria gives it a competitive advantage
– The bank has a concentration of branches in the South West, the economic hub of Nigeria
– With banking sector reform and current competition in the financial sector, the size of UBN’s
branch network will be difficult to replicate
Note
(1) Excludes branches associated with Union Homes, UBN’s mortgage business
6
Outcomes
Issues
Union Bank Then (What went wrong?)
CBN Intervention
•
Weak internal
controls combined
with poor financial
controls
Weak Corporate
Governance and
Absence of dynamic
Management
Weak Risk
Management
Framework &
Systems
Low contribution of
Subsidiaries to
Group Profitability
Large Portfolio of
Non-performing
Loans
High Cost to Income
Ratio
Un-reconciled GL
balances
Low Staff
Productivity
compared to
Competitors
Low Fee Income
Compared to
Competitors
Declining Market
Share in core areas
of business
Over concentration
of loan portfolio on
downstream oil and
gas companies
Operational
Losses
Increasing Number of
Loss Making
Branches
Manual processes
and inadequate
technology support
Aging work force and
decaying branch
infrastructure
CBN intervened on August 14 2009, replaced the Executive Management Team and appointed a five-man team largely
made up of professionals with strong and versatile experience to stabilise and recapitalise the bank.
•
The Central Bank of Nigeria’s made an initial $800mm cash injection (in the form of a 7-year, 6% note) into UBN in
2009 to stabilize the institution, and contain the liquidity crisis. This has since been repaid
•
CBN guaranteed all inter-bank placements and foreign lines of credit to ensure continued confidence in the banking
industry
•
Engagement of KPMG to undertake diagnostic review of Union bank and all its subsidiaries to independently
ascertain issues in the bank and set the context on identified lapses
•
Set up of Asset Management Corporation of Nigeria as a resolution vehicle to buy non-performing loans of banks and
provide support in recapitalising the bank to encourage private sector interest in the banks
Management Team
Funke Osibodu
Group Managing Director
Over 30 years experience in
the banking sector
Philip Ikeazor
Director
Corporate, Investment
Banking and Treasury
Over 21 years experience in
the banking sector
Ibrahim Kwargana
Director
Commercial & Retail
Banking, North
Over 25 years experience in
the banking sector
Adekunle Adeosun
Director
Commercial & Retail
Banking, South
Over 23 years experience in
the banking sector
 Internationally experienced team with extensive experience with various multinational
corporates
 Excellent performance of the team over the last 3 years resulting in the Managing Director being
ranked amongst the top 50 world business women by the Financial Times Review
8
Rescue and Repositioning Strategy
Aug 09– Dec ‘09
‘Close the Tap’
Wind down the old bank
in a safe & structured
manner
Clean up the books
Jan ’10 – Dec‘10
Jan’11 – Dec ‘12
Reposition the Bank for Growth
Turn Bank into
profitability
Commence medium term strategic
renewal for sustainable growth
Create a new bank that leverages the strengths of the old bank
and create a merit-driven organization
Union Bank ‘Reloaded’ – The New Union Bank
Repositioning the Bank for Growth
Selling and
Marketing
Aggressive, structured and focused marketing and sales approach to a well
segmented customer base
Operational
Efficiency
Leveraging scale, technology, superior business processes and cost to drive
down the cost to income ratio
Risk
Management
Reducing loan losses on a sustainable basis and deploying a robust
enterprise risk framework
Financial
Strategy
Producing accurate and reliable financial information and developing a more
strategic approach to economic strategy and forecasting to improve revenue
and profit
Capacity
Building
Increase workforce productivity through improvements in employee skill
set, deployment and attitude
10
Key Accomplishments During the Rescue & Reposition Phases (2010-2012) &
Major Strategic Thrusts to Sustain Them In The Long Term
Credit and Credit
Infrastructure
 Centralization of
Credit
Review/Approval
 Cleansing of risk
assets portfolio
 Rigorous credit
documentation
requirements
 Credit Risk
Management
transformation
 Development of
market risk and
operational risks
disciplines
 Started the
implementation of
Enterprise Risk
Management
Systems
Performance
Improvement
 Improved proportion
of profitable branches
from 66% in
September 20102 to
76% as at July 2012
 Improved
mobilization of low
cost deposits
 Enhanced branch
leadership and
accountability
 Adopted alternate
channels to service
customers (eg. ATMs
 Established 70
flagship branches
Systems and MIS
Infrastructure
Process & Systems
(cont)
Human Capital (Culture
and Key Hires) and
People Management
 Plan to upgrade to
Flexcube UBS
 Tech investment:
 Strategic hiring in key
areas
 Phased renovation of
branch infrastructure;
starting with
“flagship” branches
 Significant reduction
in number of
reconciling items and
unproofed GL
accounts
 Implementation of
cost management
initiatives to drive
operational efficiency
and reduce cost to
income ratio,
including group
shared services
infrastructure, realtime treasury, risk
mgmt
 Maintained clean
balance sheet; no
off- balance-sheet
credits
 Contractor rational-
isation and spending
moratorium
 Process & IT re-
engineering
 Shifted back office
to front-office from
60/40 to nearly
40/60
 Staffing realignment
with emphases on
business
development and
customer relationship
management
 Merit-based
performance
management
 Rejuvenation of
workforce. 1500 staff
left and 600 joined
the bank
 Senior Management
engagement with
Union
The Brand
 Considered a first generation bank, UBN
is one of Nigeria’s oldest and largest
commercial banks by assets and size
The New UBN
– Viewed as a national asset/household
name in Nigeria
– Strong brand recognition and a loyal
customer base
– Customer base mostly made up of
people who have grown and stayed with
the bank
– Retained significant brand equity
despite recent challenges
 In order to maintain and grow the
customer loyalty and brand recognition
enjoyed by the bank, a rebranding drive
has been initiated to make the brand
more visible
– Post the rebranding exercise, the
internal transformation of the bank is
also being evidenced externally
12
OUR NEW LOOK (Cont’d)
13
UBN Historical Performance
12 months
3/31/2009
N’million
129,182
9 months
12/31/2009
N’million
97,387
12 months
12/31/2011
N’million
66,492
Interest and similar income
Interest and similar expense
Net interest income
104,865
(37,565)
67,300
72,832
(45,331)
27,501
53,235
(31,264)
21,971
Fee and commission income
24,317
24,555
9,748
Net fee and commission income
24,317
24,555
9,748
Operating income
91,617
52,056
35,228
Operating expenses
(64,288)
(56,793)
(71,976)
27,329
(4,737)
(55,277)
2,421
(2,421)
-
(96,668)
(66,918)
(278,212)
(285,370)
(59,712)
(114,989)
Gross earnings
Profit/(Loss) before provisions, prior year items &
Exceptional Items
Prior year items
Provision for losses on risks assets/employee
benefits/others
Profit/(Loss) before taxation
3/6/2011
10/6/2011
17/6/2011
24/6/2011
1/7/2011
8/7/2011
15/7/2011
22/7/2011
29/7/2011
5/8/2011
12/8/2011
19/8/2011
26/8/2011
2/9/2011
9/9/2011
16/9/2011
23/9/2011
30/9/2011
7/10/2011
14/10/2011
21/10/2011
28/10/2011
4/11/2011
11/11/2011
17/11/2011
23/12/2011
6/1/2012
13/1/2012
20/1/2012
27/1/2012
3/2/2012
10/2/2012
17/2/2012
24/2/2012
2/3/2012
9/3/2012
16/3/2012
23/3/2012
30/3/2012
5/4/2012
13/4/2012
20/4/2012
27/4/2012
4/5/2012
11/5/2012
18/5/2012
25/5/2012
1/6/2012
8/6/2012
15/6/2012
UNION BANK-FUNDING & LIQUIDITY
120.00
LIQUIDITY RATIO
100.00
80.00
60.00
40.00
20.00
0.00
LIQUIDITY RATIO
Benchmark
•The liquidity ratio has remained well above the regulatory requirement .
• Above is a graphical representation of UBN’s Liquidity ratio trend between June
2011 and June 2012
Diversified Loan Portfolio
% by Industry, FY2009, FY2011 and H1 2012
26%
33%
6%
10%
6%
12%
14%
15%
11%
3%
2009
2009
Communication
Real Estate
10%
30%
Others
Agriculture
General Commerce
Manufacturing
Consumer Credit
Finance & Insurance
Oil & Gas
23%
2011
JUNE 2012
2011
 UBN’s loan portfolio has become more diversified
– Oil & Gas, which made up a significant portion of loans in 2009 has declined from 30% to 10% at
H1 2012
16
Rescue and Repositioning Strategy - Outcome
Pre-Intervention Status
 Declining market share in core areas of the
business
 Weak financial position:







High NPL ratio > 40%
Weak liquidity
Capital deficiency with CAR of -9.51%
Low level of branch profitability
Huge number of un-reconciled GL balances
High operational expense profile
Weak internal controls
 Decaying branch infrastructure
 Weak corporate governance
 Poor risk management practices
 Aging workforce
 Poor financial control
 Subsidiaries not leveraging Group synergy to
drive value creation
Post-Intervention Status
 Quality growth in market share and
profitability
 Strong financial position:







Low NPL ratio @ 5%
Strong liquidity
Solid capitalization with CAR of 20.79%
Increased number of profitable branches
Books significantly reconciled
Improved system of internal controls
Significantly reduced cost profile
 Improved bank infrastructure
 Strengthened corporate governance
 Significantly improved risk management
practices
 Younger workforce emerging
 Improved financial accountability
 Accountable Subsidiaries
Half Year 2012 Results
Group
Bank
Group
Bank
Commentary
Statements of Comprehensive Income
In millions of Nigerian Naira
Unaudited Results
6 months to 30/6/2012
Unaudited Results
6 months to 30/6/2011
Slight reduction in interest income is primarily due to lower
yields on average earning assets following migration from
46,189
risk assets to government securities in 2012
Interest income
44,382
39,126
50,633
Interest expense
(9,673)
(7,903)
(16,679)
Net Interest Income
Net fee and commission inicome
Net trading income
Other operating income
Underwritting Profits
Net Premiums from insurance contracts
Operating income
34,709
7,314
2,574
3,027
12,915
702
702
48,326
31,223
6,619
1,746
1,891
10,255
41,479
33,954
6,285
2,473
7,116
15,874
1,313
1,313
51,141
Net impairment gain/(loss) on financial assets
(1,274)
(1,359)
(44,950)
Huge reduction in impairment charge reflects improved
(45,369) quality of risk assets portfolio following sale of NPLs to
AMCON
(19,826)
(17,261)
(17,033)
(14,482)
(2,507)
(2,108)
(2,756)
(2,414)
(12,260)
(10,957)
(47,979)
12,460
12,460
3,678
16,139
9,793
9,793
3,758
13,551
(61,577)
(61,577)
21,280
(40,297)
Personnel expenses
Depreciation and amortisation
Other operating expenses
Profit/Loss before income tax
Income Tax
Profit/Loss for the Period
Significant reduction in interest expense is due to exit from
(15,544) expensive funding sources following recapitalization in
2011
30,645
5,324
1,426
6,704
13,454
44,099
(47,513) Reduction in other operating expenses is due to a nonrecurring other operational provisions of N37 bn in 2011
(65,679)
(65,679)
21,669
(44,010)
Current Position Assessment of UBN
Rating
Assessment Criteria
1
2
3
4
5
Rating Justification
C
Capital Adequacy

 Capital Adequacy Ratio stood at 20.16% as at
June 30, 2012
A
Asset Quality

 Asset quality is good post sale of NPLs to
AMCON
M
Management Quality

 Strong management team, and will be
augmented in several key areas.
E
L
Earnings
Liquidity


 Earnings are positive and growing quarter on
quarter on account of increased earning
assets and better portfolio quality following
sale of NPLs to AMCON
 The bank has been a net placer of funds in
the interbank market since its
recapitalization
Key:
1 – Excellent; 2 – Good; 3 – Satisfactory; 4 – Poor; 5 – Unsatisfactory
19
Recapitalisation through Core Investor led Strategy
 Due diligence by prospective investors commenced in early 2010:
 African Capital Alliance (ACA) investment consortium emerged as Preferred Core Investor
 Proposed capital injection was $500million Tier 1 and $250million Tier 2
 ACA consortium - now Union Global Partners Ltd - holds controlling interest in UBN:
 African Capital Alliance
 Standard Chartered Private Equity
 ABC Holdings Group
 Corsair Capital
 FMO Netherlands
 Richard Chandler Corporation
 A newly reconstituted board, reflecting the change in ownership of the bank, has
commenced charting a course for the new Union Bank that will build upon, and
complement, the stabilizing actions taken after the intervention
20
Full recapitalization accomplished in December 2011 with an AMCON bridge
September, 2011 (USD200.5m)
 Although UGPL’s
investment took place in 3
phases, full recapitalisation
was achieved in December
2011 through AMCON’s
investment to:
African Capital Alliance

Corsair Capital

Standard Chartered PE

FMO

July/September, 2012
(USD500m)
March, 2012 (USD397m)

African Development Corporation

Inter-Private Equity

Partner Re

African Capital Alliance

Richard Chandler Corporation

African Development Corporation
 bring net asset value to
zero, &
 Provide equity bridge of
$299.5m to UGPL, which
was fully taken up by
UGPL in July/September
2012
AMCON
UGPL
20% 2)
 As promised to
shareholders, Rights
Issue was attempted
(without success) by the
Bank, but with no
impact on full
capitalisation
 Post recapitalization, the
UBN Board was
reconstituted
Current Shareholders
65%(5year lock up)
15%
100.0%
UBN Holding Company
100.0%
UBN
Other
Subsidiaries/Associates
21
Consortium Members
Consortium Member
Private Equity
Brief Profile
Value Add
 Founded in 1997, ACA is a leading independent
private equity firm investing in West Africa
(principally in Nigeria and the Gulf of Guinea)
 Local presence and knowledge
 Private equity arm of Standard Chartered Bank
Plc
 Access to know-how from one of Africa’s
leading banks
 USD4.2 bn principal investments to date
 Significant risk management expertise which
will be brought into UBN
 Has invested USD400 mn in Africa since 2008
 Financial services group focussing on the
banking, insurance market and payment
solutions in SSA. In addition, ADC is part of the
German ABL group of companies which has
total AUM/administration of EURO€6.8bln
(US$8.5bln
RCC
 Broad local network
 African financial services operational
capability through ABC Holdings Limited
 Experience in bank turnaround in SSA
 Good partner for sponsoring shareholder
 A multi-billion dollar international investment
group
group with Head office in Singapore since 2005,
with satellite offices in India, Indonesia, Kenya  Investor with significant experience in
developing economies
& Egypt
 Highlights the importance of building book
value per share as a key performance metric
22
Consortium Members
Committed Consortium
Member
Brief Profile
Value Add
 One of the longest standing private equity firms
 International PE fund that is specialised in
focused exclusively on investing in the global
the financial services sector with rich
financial services industry
banking industry expertise
 Corsair invests exclusively in financial services
and has over $2.5b in assets under management  Excellent in turnaround strategy and
operational efficiency capability
 Expertise in international governance,
controls, Enterprise Risk Management
 FMO is a leading DFI in developing countries
 Experienced using sustainable environmental,
and is one of the largest bilateral private sector
social and governance (ESG) practices to
development banks worldwide. FMO has a AAA
drive strong financial results and long-term
rating from Standard and Poor's.
viability
 Highly regarded by regulators
Committed Tier 2 Debt
Provider
Brief Profile
Value Add
 OPIC is the U.S. Government’s development
 OPIC commitment reflects confidence in
finance institution. It is an independent agency
Nigeria and the Consortium to successfully
of the United States Government that mobilizes
transform UBN
U.S. private sector investment in new and
 OPIC is providing the USD250m Tier 2 loan
emerging markets in order to support
investment in UBN
sustainable economic development of those
 OPIC performed significant due diligence
markets
and, based on that diligence, committed to
 Since its establishment in 1971, OPIC has
the largest U.S. governmental agency loan in
financed more than 4,000 projects providing
Nigeria
23
USD188 billion of investment in emerging
markets.
Current Board & Management Highly Experienced
Grade
Number
Executive
Directors
Non Executive
Directors
Cumulative
Years of
Experience
Average
Years of
Experience
4 (new GMD
and additional
EDs expected)
118
29.5
NAL Merchant Bank Ltd, Continental Merchant Bank Ltd (Former Chase
Merchant Bank), Nigeria Int’l Bank Ltd (Citibank)
MBC Int’l Bank Ltd, Ecobank Nigeria Ltd
Ecobank Transnational Inc, FBN Merchant Bankers Ltd
First Bank of Nigeria Plc, Nigerian-American Bank Ltd
United Bank of Africa Plc, Ecobank Kenya Ltd
Bankers Trust Company New York, National Bank of Nigeria Ltd
5 (more
additions
expected)
187
37.4
Arthur Anderson & Co., African Capital Alliance
Ministry of Industry (Minister), Nigeria Economic Summit Group
Nigeria Industrial Development Bank (now Bank of Industry)
National Insurance Corporation of Nigeria, Nigerian National Petroleum
Corporation, Kaduna Refining & Petrochemical Co.
Nigerian Reinsurance Corporation, Goldman Sachs
Virgin Management Ltd, Virgin Nigeria Airways
Standard Chartered Private Equity
Assistant General
Managers,
Deputy General
Managers, &
General Managers 53 &
Managers &
Senior Managers
Key Institutions Prior to Joining Union Bank
UBA, FIRST BANK, SPDC, ECOBANK, MBC INTBANK, CITIBANK,
STANBIC IBTC BANK PLC, GTB, BRITISH AMERICAN TOBACCO,
PHILLIPS CONSULTING, ZENITH BANK, KPMG, FITC, FCMB,
ACCESS BANK
growing
269 and growing
1,444
6,998
27
26
PRICEWATERHOUSE COOPERS,ASSOCIATED DISCOUNT
HOUSE,DIAMOND BANK, FIRSTBANK, UBA, KPMG CONSULTING,
AKINTOLA WILLIAMS DELOITTE,NIGERIAN BOTTLING
COMPANY, GLOBACOM LIMITED,ROYAL BANK OF
CANADA,ACCESS BANK,FCMB,BP Oil UK
24
Current New Non-Executive Directors
Dick Kramer(OFR) – Chairman – Chairman of African Capital Alliance. Came to Nigeria 34 years ago to launch Arthur Andersen & Company as
Managing Partner. He trained in Accountancy and earned an MBA from Harvard Business School before joining Arthur Andersen in 1958. Mr. Kramer
continued in Nigeria to consult, invest and continue community service activities including at the Nigeria Economic Summit Group (NESG); the Harvard
Business School Association of Nigeria (HBSAN); the Lagos Business School; and the American Business Council. He has been honoured with many
prestigious awards, including the national merit award of Officer of the Order of the Federal Republic (OFR); the Zik Prize in Leadership; and Institute of
Directors award for Entrepreneurship.
Dr. Yemi Osindero is the Head of West Africa Private Equity of S tandard Chartered Private Equity. He co-founded Virgin Nigeria Airways in 2005 and
was Chief Operating Officer and member of its Board of Directors. His experience spans investment banking, financial advisory, M&A initiatives, and
strategy at global firms like Goldman Sachs, Virgin Group, Hawkpoint Partners Limited , etc. He holds a B.Eng. (First Class Honours) in Chemical and
Bioprocess Engineering from University of Bath, UK; and a Ph.D in Chemical Engineering from the same university. He has played a number of leadership
roles, including at the Board of Airline Representatives (BAR) in Nigeria and the Presidential Committee on Ticket Pricing, among others.
Dickie Agumba Ulu is a management expert with over 30 years of professional/industrial experience. He trained at various times in the UK in
Marketing/Insurance; Risk Management; Human Resource Management and Organisational Designs. He was General Manager, UK, Nigeria Reinsurance
Corporation, London; Managing Partner at DKU Associates, London; and Special Assistant to the Presidential Adviser on National Orientation and Public
Affairs, among others. He had also undertaken many national assignments, including Chairman, Presidential Review Committee on Streamlining the
Functions of Nigerian Film Corporation and the National Films & Video Censors Board;
Chief Dr. (Mrs.) Akande (OON) studied Accountancy at the University of North London. Completed her postgraduate programme at the Harvard Business
School, Boston, USA and also attended management courses at both Oxford University, United Kingdom, and Institute for Management Development in
Lausanne, Switzerland. She was the first woman honourable minister of industry in the Federal Government of Nigeria in December, 1997. At various times,
Chief Mrs. Akande was a director of both the National Insurance Corporation of Nigeria, (NICON), and Nigeria Industrial Development Bank (NIDB). She
was bestowed with the national honour of Officer of the Order of the Niger (OON) in 2003. She was appointed to the board of Union Bank in 2008
Engineer Mansur Ahmed holds a first degree in Mechanical Engineering from Nottigham University and a Masters degree in Industrial Engineering and
Administration from Cranfield University. He also holds a postgraduate certificate in Investment Appraisal and Management of the Harvard Institute of
International Development. He started his working career as a Research Assistant with Epsom Research Laboratories, UK and later returned to Nigeria where
he joined the Ahmadu Bello University as an Assistant Lecturer in the Department of Mechanical Engineering. He has worked in the Manufacturing industry
in companies such as Dunlop Nigeria Industries Limited, Bgauda and Kaduna Textiles Limited. He is currently the Director General of the Nigeria Economic
Summit Group (NESG). He joined the Board of the Bank as Non- Executive Director in 2007.
25
Going Forward

The next phase of transformation is under the incoming Group Managing Director - Emeka
Emuwa

This is a going forward journey, building upon the successes thus far delivered and based
upon the core principles of:
 Creating a client-driven institution serving customers through competitive and
innovative products supported by positive customer experiences
 Investing in top-tier people, efficient processes and scalable systems and infrastructure
 Instituting holistic risk management strategies supported by underlying infrastructure
to enable prudent growth
New Executive Management Team- November 2012
Emeka Emuwa
Group Managing Director – Designate
Philip Ikeazor
Director
Corporate, Investment
Banking and Treasury
Over 21 years experience in
the banking sector
Ibrahim Kwargana
Director
Commercial & Retail
Banking, North
Over 25 years experience in
the banking sector
Adekunle Adeosun
Director
Commercial & Retail
Banking, South
Over 23 years experience in
the banking sector
27
Near-term and Long-term Strategy
Near Term strategy
 Quality growth of risk asset portfolio
– Focus on priority sectors of the
economy
– Adopt best credit risk management
practices
 Strengthen Nigerian Franchise
– Build capacity in key areas
– Increase wallet share of customers’
business to grow fee-based income
– Optimize branch network
architecture and enhance group
synergy
– Deepen customer relationships
– Extend product offerings
Near Term Strategy
 Continue reengineering of operational
processes for improved efficiencies
– Utilize Shared Services, where
appropriate, to reduce operating cost
– Reinforce operational risk management
practices
– Upgrade IT and physical infrastructures,
including branches to improve customer
service delivery
 Accelerate rollout of i Union strategic
initiatives
– Leverage cashless and financial inclusion
policies to deploy mobile banking
products to the unbanked
– Deepen awareness of bank’s suite of eBusiness products to enhance bank’s
capacity to serve existing customers via
alternative channels
Long-Term Strategy
 Become top 5 most profitable financial
institution group in Nigeria
 Leverage group synergy to transform strategic
subsidiaries
 Improve customer service delivery by
adopting best practices and upgrade
infrastructure
 Increase share of wallet of existing customers
to boost fee-based income
 Leverage technology and e-Business platform
to improve cost/income ratio
Conclusion
 New executive management installed by the CBN were successful over past three
years in Rescuing & Repositioning the bank through:
 addressing the issues that led to CBN intervention in the bank
 redirecting the credit infrastructure and operational infrastructure,
 rebranding the bank
 improving the customer service and customer base
 rejuvenating existing work force whilst also injecting a new breed of talent.
 Amcon provided the facility to clean up the bank’s toxic assets and bridge the
capital formation system
 At the same time, working alongside the Central Bank capitalization plan for the
bank, Union Global Partners Limited, a consortium of strategically aligned group of
investors, completed it’s USD$500m recapitalization in September 2012.
 Union Bank Group is now back in profit and progressing well
 The new journey of transformation going forward will result in an institution that
will create lasting value for all key stakeholders
OUR REALITY
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Thank You