Facts Behind the Figures

snowpeaschocolateΔιαχείριση

18 Νοε 2013 (πριν από 3 χρόνια και 9 μήνες)

102 εμφανίσεις

Union Bank of Nigeria Plc, H1 2012


Facts Behind the Figures

Funke
Osibodu

Group Managing Director/Chief Executive

Outline



2

1

Overview of UBN

2

Branch Footprint

3

The Group
-

Business Divisions & Subsidiaries

4

Our Transformation Journey So far…

5

6

UBN Historical Performance

Rescue and Reposition Strategy

7

UBN Ratios

8

H1 2012 Results & Position Assessment

9

New Core Investors, Board & Management

10

Going Forward Strategy

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



4

Corporate Banking

UBN

Retail Banking

Asset Management

Other Group
Companies

Insurance

Treasury & Investment
Banking

8 Subsidiary Entities/4
Associated Companies

UBN Subsidiaries

5


UBN subsidiaries include:













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

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 Branch Footprint




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


Extensive

Distribution/ Branch Footprint
(1)


6

Note

(1) Excludes
branches associated with Union Homes, UBN’s mortgage
business

Union Bank Then (What went wrong?)



Weak Corporate

Governance and
Absence of dynamic
Management

Weak Risk
Management
Framework &
Systems

Weak internal
controls combined
with poor financial
controls

Manual processes
and inadequate
technology support

Aging work force and
decaying branch
infrastructure

Operational

Losses

High Cost to Income
Ratio

Large Portfolio of
Non
-
performing
Loans

Un
-
reconciled GL
balances

Declining Market
Share in core areas
of business

Low contribution of
Subsidiaries to
Group Profitability

Low Staff
Productivity
compared to
Competitors

Increasing Number of
Loss Making
Branches

Low Fee Income
Compared to
Competitors

Over concentration
of loan portfolio on
downstream oil and
gas companies




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

$
800
mm

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


Outcomes

CBN Intervention

Issues

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

Adekunle

Adeosun

Director

Commercial
& Retail
Banking,
South

Over 23 years experience in
the banking sector

Ibrahim
Kwargana

Director

Commercial
& Retail
Banking,
North

Over 25 years experience in
the banking sector

8


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

Create a new bank that leverages
the
strengths of the old bank
and create a
merit
-
driven
organization

Clean up the books

Wind down the old bank
in a safe & structured
manner

‘Close the Tap’

Union
Bank
‘Reloaded’


The New Union Bank

Aug 09


Dec
‘09

Jan ’10


Dec
‘10

Jan
’11


Dec ‘
12

Turn Bank
into

profitability

Commence
medium term
strategic

renewal for
sustainable growth

Reposition the Bank for Growth

Rescue and Repositioning Strategy

Repositioning the Bank for Growth

Aggressive, structured and focused marketing and sales approach to a well
segmented customer base


Operational
Efficiency

Risk
Management

Financial
Strategy

Capacity
Building


Leveraging scale, technology, superior business processes and cost to drive
down the cost to income ratio


Reducing loan losses on a sustainable basis and deploying a robust
enterprise risk framework


Producing accurate and reliable financial information and developing a more
strategic approach to economic strategy and forecasting to improve revenue
and profit


Increase workforce productivity through improvements in employee skill
set, deployment and attitude

Selling and
Marketing

10

Credit and Credit
Infrastructure

Performance
Improvement

Systems and MIS
Infrastructure

Process & Systems

(cont)

Human Capital (Culture
and Key Hires) and
People Management


C敮tr慬楺at楯渠潦
Cr敤楴
R敶楥眯䅰pr潶慬


C汥ln獩sg

潦 物獫
慳獥t猠p潲tf潬楯


剩R潲潵猠cr敤楴
documentation
requirements


Cr敤楴

剩Rk
M慮慧敭ent
tr慮sf潲浡t楯i


D敶敬ep浥湴m潦
浡mket 物獫 慮d
operational risks
disciplines


却慲a敤 th攠
業i汥l敮tat楯渠潦
䕮t敲pr楳攠剩Rk
M慮慧敭ent
Syst敭e


䥭Ir潶敤 pr潰潲t楯渠
潦 pr潦楴慢汥lbr慮ch敳e
fr潭 㘶% 楮
卥pt敭e敲 ㈰㄰㈠t漠
㜶% 慳aat 䩵汹 ㈰ㄲ


䥭Ir潶敤
浯b楬楺at楯i 潦 汯眠
cost deposits


Enhanced branch
leadership and
accountability


䅤潰t敤 慬a敲nat攠
ch慮n敬猠t漠獥s癩v攠
cust潭敲猠(

⸠.呍s


䕳t慢汩獨敤 㜰
f污杳l楰 br慮ch敳



偬Pn

t漠up杲慤攠t漠
䙬Fxcub攠啂S


偨慳敤 r敮潶at楯渠潦
br慮ch 楮fr慳t牵ctur攻
st慲a楮朠w楴h
“flagship” branches


Significant reduction
in number of
reconciling items and
unproofed GL
accounts


䥭I汥l敮tat楯渠潦
c潳t 浡m慧敭ent
楮楴楡t楶敳e t漠d物r攠
operational efficiency
and reduce cost to
income ratio,
including group
shared services


Tech investment:
infrastructure, real
-
time 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


却rat敧楣

h楲楮朠楮 ke礠
慲敡s


却aff楮朠r敡汩杮浥湴
w楴h 敭eh慳敳a潮
bu獩s敳猠
d敶敬ep浥湴 慮d
cust潭敲 r敬et楯i獨楰
management


Merit
-
based
performance
management


R敪uv敮at楯i 潦
w潲kf潲c攮eㄵ〰 staff
汥ft 慮d 㘰〠橯楮敤
the bank


Senior Management
engagement with
Union




Key Accomplishments During the Rescue & Reposition Phases (2010
-
2012) &

Major Strategic Thrusts to Sustain Them In The Long Term

The Brand


Considered a first generation bank, UBN
is one of Nigeria’s oldest and largest
commercial banks by assets and size


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

The New UBN

12

OUR NEW LOOK (Cont’d)

13

UBN Historical Performance

12 months

9 months

12 months

3/31/2009

12/31/2009

12/31/2011

N’million

N’million

N’million

Gross earnings

129,182

97,387

66,492





Interest and similar income

104,865

72,832

53,235

Interest and similar expense

(
37,565)

(
45,331)

(31,264)

Net interest income

67,300

27,501

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)





Profit/(Loss) before provisions, prior year items &
Exceptional
I
tems

27,329

(
4,737)

(55,277)

Prior year items

2,421

(
2,421)

-

Provision for losses on risks
assets/employee
benefits/others

(
96,668)

(278,212)

(59,712)

Profit/(Loss) before taxation

(
66,918)


(
285,370)

(114,989)

UNION BANK
-
FUNDING & LIQUIDITY


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

0.00
20.00
40.00
60.00
80.00
100.00
120.00
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
LIQUIDITY RATIO
Benchmark
LIQUIDITY RATIO

Diversified Loan Portfolio

% by
Industry, FY2009, FY2011 and H1 2012


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

30%
23%
15%
3%
12%
10%
11%
14%
10%
6%
6%
33%
26%
2009
2011
Others
Communication
Real Estate
Agriculture
General Commerce
Manufacturing
Consumer Credit
Finance & Insurance
Oil & Gas
2009 2011 JUNE 2012

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

Rescue and Repositioning Strategy
-

Outcome

Half Year 2012 Results



Group

Bank

Group

Bank

Commentary

Statements
of Comprehensive Income



Unaudited Results

Unaudited Results

In millions of Nigerian Naira

6 months
to 30
/6/2012

6 months
to 30/6/2011

Interest income

44,382

39,126

50,633


46,189

Slight reduction
in interest income
is

primarily
due
to
lower
yields

on
average
earning assets
following
migration from
risk assets to
government securities in 2012


Interest expense

(9,673)

(7,903)

(16,679)


(15,544)

Significant reduction in interest expense is due to
exit from
expensive funding

sources

following recapitalization in
2011

Net Interest Income

34,709

31,223

33,954

30,645

Net fee and commission inicome

7,314

6,619

6,285


5,324

Net trading income

2,574

1,746

2,473


1,426

Other operating income

3,027

1,891

7,116


6,704



12,915

10,255

15,874


13,454

Underwritting Profits


702


-

1,313


-

Net Premiums from insurance contracts


702


-

1,313



Operating income

48,326

41,479

51,141


44,099

Net impairment gain/(loss) on financial assets

(1,274)

(1,359)

(44,950)


(45,369)

Huge reduction in impairment charge reflects improved
quality of risk
assets portfolio
following sale of
NPLs
to
AMCON

Personnel expenses

(19,826)

(17,261)

(17,033)


(14,482)

Depreciation and
amortisation

(2,507)

(2,108)

(2,756)


(2,414)

Other operating expenses

(12,260)

(10,957)

(47,979)


(47,513)

Reduction

in other operating expenses is due to a non
-
recurring other operational provisions of N37
bn

in 2011



12,460

9,793

(61,577)

(65,679)

Profit/Loss before income tax

12,460

9,793

(61,577)


(65,679)

Income Tax

3,678

3,758

21,280


21,669

Profit/Loss for the Period

16,139

13,551

(40,297)

(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

Earnings












Earnings are positive and growing quarter on
quarter on account of increased earning
assets and better portfolio quality following
sale of NPLs to AMCON

L

Liquidity










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


Although UGPL’s
investment took place in 3
phases, full recapitalisation
was achieved in December
2011 through AMCON’s
investment to
:



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



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


Full recapitalization accomplished in December 2011 with an AMCON bridge

UGPL

AMCON

UBN Holding Company

Current Shareholders

20%
2)

65
%(5year lock up)

15%

100.0%

UBN

Other
Subsidiaries/Associates

100.0%

September, 2011 (USD200.5m
)


African Capital Alliance


Standard Chartered PE


African Development Corporation



21

March, 2012 (USD397m)


Corsair Capital


FMO


Inter
-
Private Equity


Partner Re


African Capital Alliance

July/September,
2012
(USD500m
)


Richard Chandler Corporation


African Development Corporation




Consortium Members

Consortium Member

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


Broad local network


Private equity arm of Standard Chartered Bank
Plc


USD4.2
bn

principal investments to date


Has invested USD400
mn

in Africa since 2008


Access to know
-
how from one of Africa

s
leading banks


Significant risk management expertise which
will be brought into UBN


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


African financial services operational
capability
through ABC Holdings Limited


Experience in bank turnaround in SSA

RCC


A multi
-
billion dollar international investment
group with Head office in Singapore since 2005,
with satellite offices in India, Indonesia, Kenya
& Egypt



Good partner for sponsoring shareholder
group


Investor with significant experience in
developing economies


Highlights the importance of building book
value per share as a key performance metric



Private Equity

22

Consortium Members

Committed Consortium
Member

Brief Profile

Value Add






One of the longest standing private equity firms
focused exclusively on investing in the global
financial services industry


Corsair invests exclusively in financial services
and has over $2.5b in assets under management



International PE fund that is specialised in
the financial services sector with rich
banking industry expertise


Excellent in turnaround strategy and
operational efficiency capability


FMO is a leading DFI in developing countries
and is one of the largest bilateral private sector
development banks worldwide. FMO has a AAA
rating from Standard and Poor's
.


Expertise in international governance,
controls, Enterprise Risk Management


Experienced using sustainable environmental,
social and governance (ESG) practices to
drive strong financial results and long
-
term
viability


Highly regarded by regulators

Committed Tier 2 Debt
Provider

Brief Profile

Value Add


OPIC is the U.S. Government’
s development
finance institution.

It is an independent agency
of the United States Government that mobilizes
U.S. private sector investment in new and
emerging markets in order to support
sustainable economic development of those
markets


Since its establishment in 1971, OPIC has
financed more than 4,000 projects providing
USD188 billion of investment in emerging
markets.


OPIC commitment reflects confidence in
Nigeria and the Consortium to successfully
transform UBN


OPIC is providing the USD250m Tier 2 loan
investment in UBN


OPIC performed significant due diligence
and, based on that diligence, committed to
the largest U.S. governmental agency loan in
Nigeria

23

Current Board & Management Highly Experienced

24

Grade

Number

Cumulative
Years of
Experience

Average
Years of
Experience

Key Institutions Prior to Joining Union Bank


Executive
Directors

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


Non Executive
Directors

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 & growing

1,444

27

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

Managers &

Senior Managers

269 and growing

6,998

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

Current New Non
-
Executive Directors

25

Dick Kramer(OFR)


Chairman


Chairman of African Capital Alliance.

C
ame 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 Gr
oup

(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

t
he 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, f
inancial 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 Nationa
l O
rientation and Public
Affairs, among others. He had also undertaken many national assignments, including Chairman, Presidential Review Committee on

St
reamlining 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 i
n 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 lat
er
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 ind
us
try
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.



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





Going Forward

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

Adekunle

Adeosun

Director

Commercial
& Retail
Banking,
South

Over 23 years experience in
the banking sector

Ibrahim
Kwargana

Director

Commercial
& Retail
Banking,
North

Over 25 years experience in
the banking sector

27

Near Term strategy

Near Term Strategy

Long
-
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


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 e
-
Business products to enhance bank’s
capacity to serve existing customers via
alternative channels



Become

top 5 most profitable financial
institution group in Nigeria


䱥ver慧e 杲oup s祮er杹

to
tr慮sfo牭 strate杩挠
獵b獩s楡物r猠


䥭Irove custo浥爠獥r癩ve de汩le特rb礠
慤opt楮朠best
pr慣a楣e猠慮d up杲慤e
楮晲慳t牵rt畲e


䥮cre慳a

獨慲e of w慬汥t of e硩xt楮朠custo浥r猠
to boost fee
-
b慳ad 楮co浥


䱥ver慧e techno汯杹g慮d e
-
䉵獩se獳sp污tfo牭
to 業irove cost/楮co浥 rat楯


Near
-
term and Long
-
term Strategy


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



Conclusion

OUR REALITY

30

Thank You