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Agusto & Co. assigns a “Aa-” rating to United Bank for Africa Plc

Rating Release

Agusto & Co. assigns a “Aa-” rating to United Bank for Africa Plc

The rating expires on 30 June 2020.

The rating assigned to United Bank for Africa Plc. (“UBA” or “the Bank”) reflects the Bank’s performance as underpinned by its good liability generation strategy and upheld by a strong brand franchise. This is in addition to a good liquidity profile, satisfactory asset quality given the operating terrain, as well as good capitalisation for current business risks. UBA’s rating is however constrained by weaknesses in the overall macroeconomy, a comparably lower net interest spread and a high cost to income ratio, limiting competitive profitability levels vis à vis Tier 1 banking peers.

This Rating Release is transmitted to you for the sole purpose of dissemination through your newspaper / magazine / agency. The rating release may be used by you in full or in part without changing the meaning or context thereof but with due credit to Agusto & Co.