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FEBRUARY 19, 2007 VOL. 20. NO 19

Repositioned to Lead

**Tony Elemelu**

As against the belief of some critics that the recent restructuring in the United Bank for Africa (UBA) Plc, was a ploy to finally check-out members of the old UBA on the board, indications are that the changes were intended to inject fresh impetus into the bank
By Udo Onyeka
The recent Annual General Meeting (AGM), of the United Bank for Africa (UBA), held in Asaba, the Delta State capital would go down into the history books of stakeholders of the bank as a memorable event. Not only did the bank make public its 2006 financial report with a balance sheet size of N1.05 trillion, the first in the history of the Nigeria banking industry, it also at the event unfolded a sweeping restructure which saw the former chairman, Kayode Sofola (SAN) handed baton to chief Ferdinand Alabraba.
The move, critics say marks the final exit of old UBA board members and top executives from the board of the fast growing bank and the entrance of friends and associates of the group managing director, Tony Elumelu.
But the bank said the reorganization was to inject fresh impetus into its march towards the industry leadership in the financial services landscape of Africa.
In the reorganization, Kayode Sofola (SAN), who has served 14 years as chairman, in the bank was replaced by Ferdinand Alababra, former chairman of the defunct Standard Trust Bank (STB) and renowned chartered surveyor
The change also brought on the board new Executive Director and four new non-Executive Directors. A former Regional Director of the North West Ibrahim Jega has been elevated to Executive Director. He takes over from Bello Garba, Executive Director and former Regional head North who has now retired.
Also on the board as non-Executive directors are chief Kolawole Jamodu an industrialist, chartered Accountant and alumnus of Harvard Business school, Runa Alam, an accomplished investment banker and currently Chief Executive Office of Kingdom Zephyr Africa management, a multi-national investment corporation in Adekunle Olumide oOn, a diplomat and a technocrat in the organised private sector, who has served as director of the Lagos chamber of commerce and Industry between 1971 and 2005 and Alhaji Garba S. Rurba, former controller and Area Administrator of the Bank of Industry (BOI), formerly (NIDB), Director of Co-operatives, Federal Ministry of Labour and Productivity and Director of Personnel and Administration, Arewa Hotels.
The restructure at UBA according to a report from the bank also involves reassignment of existing Executive Director and other senior executives.
Chika Mordi, formerly Executive Director, Retail Banking, is now Executive Director, Investment Banking and Assets Management, with a portfolio that includes five subsidiaries of the UBA group namely UBA Global Markets, UBA Trustees, UBA Registrars and UBA Stockbrokers.
Philip Oduoza, formerly Executive Director, Operations and Technology is presently Executive Director Electronic and Transaction Banking. He is also responsible for the cards Division, Funds Transfer, Transaction Services, Mortgages, among other units.
Femi Olaloku is now the new Head of Operations and Technology (IT). Until this appointment, he was the General Manager, Information Technology.
Sources within the bank also dismissed as unfounded the allegation of displacing those from the old UBA bloc and filling in their positions with former “(STB) guys.”
For instance said that Kayode Sofola has been in the saddle as chairman of the bank for 14 years. “After 14 years as chairman I believe he has put in his best to the growth of this bank said the source.
Similarly a reliable source at the Central Bank of Nigeria (CBN) , told The Source, that in the new code of governance for banks the apex bank directed that no board member should serve more than three terms of four years each – that is no board member should serve the board for more than 12 years.
However, the appointment of Sofola’s replacement, Alabraba was unanimously approved by the UBA board and not hand picked, The Source was told.
According to the Group Managing Director, Tony Elumelu, the bank has never been associated with mediocrity hence he told shareholders at the AGM in Asaba, that “with your support UBA would keep surpassing their expectations in growing value for their investment.”
Elumelu said that the UBA's 2006 financial result was a validation of the bank's retail strategy, which combined innovation, product development with consumer promotions, strategic alliances and other diversification and growth initiatives that had characterized its post-merger in the last one year.
The UBA posted a profit of N12.8 billion for the 2006 financial year, while the bank’s yearly accounts show that the deposit base soared by 278 per cent from N205 billion in 2005 to N776 billion in 2006.
Also gross earnings rose by 247 per cent from N26.1 billion in 2005 to N90.47 billion in 2006.
As part of its consolidation strategy, UBA launched a naira based credit card last December and second only to Zenith Bank Plc. It has also signed a pact with China Southern Airline, an arrangement that would make travelling to that country very easy and smooth.