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.
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