United Bank for Africa (Ghana) Ltd.

Unaudited Condensed Financial Statements for the Nine Months Ended 30 September 2021
UNAUDITED STATEMENT OF COMPREHENSIVE INCOME FOR THE NINE MONTHS ENDED 30 UNAUDITED STATEMENT OF FINANCIAL POSITION AS AT 30 SEPTEMBER 2021
SEPTEMBER 2021
(All amounts are expressed in thousands of Ghana cedis unless otherwise stated)
(All amounts are expressed in thousands of Ghana cedis unless otherwise stated)
Sept 2021 Sept 2020
Sept 2021 Sept 2020 Assets
Cash and bank balances 870,526 768,552
Interest income 362,999 413,762
Investment securities:
Interest expense (120,872) (180,454) - At amortised cost 2,506,937 1,261,195
- At fair value through other comprehensive income 259,607 492,841
Net interest income 242,127 233,308
Loans and advances to customers 1,004,949 1,077,009
Fees and commission income 53,653 42,596 Other assets 239,494 65,991
Fees and commission expense (11,759) (8,363) Property and equipment 64,212 46,894
Intangible assets 1,683 113
Net fees and commission income 41,894 34,233
Income tax asset 271 3,659
Net trading and revaluation income 36,606 36,727 Deferred tax asset 3,340 -

Other operating income 910 1,343 Total assets 4,951,019 3,716,254

Liabilities
Net trading and other income 37,516 38,070
Deposits from customers 3,668,279 2,571,831
Operating income 321,537 305,611 Deposits from banks 88,380 82,237
Allowance for credit losses on financial assets (69,114) (12,557) Other liabilities 106,819 88,321
Deferred tax liability - 872
Employee benefit expenses (46,913) (45,579)
Total liabilities 3,863,478 2,743,261
Depreciation and amortisation (8,774) (8,511) Equity
Other operating expenses (36,451) (42,812) Stated capital 400,000 400,000
Income surplus 378,904 299,016
Profit before income tax 160,285 196,152
Fair value reserve (39) 4,594
Income tax expense (63,607) (56,439) Credit risk reserve 7,120 8,381
Profit for the period 96,678 139,713 Statutory reserve 301,556 261,002
Total equity 1,087,541 972,993
Other comprehensive income
Total liabilities and equity 4,951,019 3,716,254
Items that will be reclassified to the income statement:
Net change in fair value during the year (net of tax) (885) 3,316 UNAUDITED STATEMENT OF CHANGES IN EQUITY FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2021
Total comprehensive income for the period 95,793 143,029 (All amounts are expressed in thousands of Ghana cedis unless otherwise stated)
Basic and diluted earnings per share (Ghana cedis) 0.01 0.02 For the nine months ended 30 September 2021

Income Statutory Credit risk Fair value

Stated capital Total
surplus reserve reserve reserve
UNAUDITED STATEMENT OF CASHFLOWS FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2021 At 31 December 2020 400,000 289,346 301,556 - 846 991,748

(All amounts are expressed in thousands of Ghana cedis unless otherwise stated) Profit for the period - 96,678 - - - 96,678
Net change in fair value
- - - - (885) (885)
during the year (net of tax)
Sept 2021 Sept 2020
Total comprehensive
Cash flows from operating activities - 96,678 - - (885) 95,793
income for the period
Profit before income tax 160,285 196,152 Transfer between reserves - (7,120 ) - 7,120 - -
Adjustments for: At 30 September 2021 400,000 378,904 301,556 7,120 (39) 1,087,541

Depreciation and amortisation 8,774 8,511 For the nine months ended 30 September 2020
Allowance for credit losses on financial assets 66,995 12,557 Stated capital Income Statutory Credit risk Fair value Total
Gain on disposal of property and equipment - (62) surplus reserve reserve reserve

Allowance for credit loss on contingent liabilities 2,119 100 At 31 December 2019 400,000 159,303 261,002 8,381 1,278 829,964
Profit for the period - 139,713 - - - 139,713
Finance cost on lease liabilities 975 -
Net change in fair value
Net interest income (242,127) (233,308) - - - - 3,316 3,316
during the year (net of tax)
(2,979) (16,050) Total comprehensive
- 139,713 - - 3,316 143,029
Change in operating assets and liabilities income for the period

Change in mandatory reserve deposits (88,151) (23,303) Transfer between reserves - - - - - -

Change in loans and advances to customers 34,393 (127,701) At 30 September 2020 400,000 299,016 261,002 8,381 4,594 972,993

Change in other assets (150,332) (33,683)

Change in placements with banks - (62,222) NOTES TO THE UNAUDITED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2021

Change in deposits from banks 15,936 (1,156,127) 1. Reporting Entity

Change in deposits from customers 881,515 233,031 United Bank for Africa (Ghana) Limited (“the Bank”) is a limited liability company and is incorporated and domiciled in Ghana. The
registered office is Heritage Towers, Ambassadorial Enclave, Accra. The Bank operates under the Banks and Specialised Deposit-Taking
Change in other liabilities 10,435 (7,017) Institutions Act, 2016 (Act 930).
Interest received 362,999 413,762 The Bank is a subsidiary of United Bank for Africa Plc of Nigeria and provides retail, corporate banking and investment banking services.
2. Basis of Preparation and Significant Accounting Policies
Interest paid (120,872) (180,454)
The condensed financial statements have been prepared in accordance with IAS 34 (Interim Financial Reporting) as issued by the Inter-
Income tax paid (54,126) (54,580) national Accounting Standards Board (IASB). Additional information required under the Companies Act, 2019 (Act 992) and the Banks
and Specialised Deposit-Taking Institutions Act, 2016 (Act 930) have been included where appropriate.
Net cash used in operating activities 888,818 (1,014,344)
The accounting policies adopted in the preparation of these condensed financial statements are consistent with those applied in the
Cash flows from investing activities preparation of the Bank’s annual financial statements for the year ended 31 December 2020, The Bank has not early adopted any stan-
dard, interpretation or amendment that has been issued but is not yet effective.
Purchase of investment securities (3,488,286) (1,986,536) These financial statements are presented in Ghana Cedi which is the Bank’s functional currency.
Proceeds from sale/redemption of investment securities 2,494,506 3,186,760 3. Quantitative Disclosures

Purchase of property and equipment (5,497) (5,874) Sept 2021 Sept 2020
Capital adequacy ratio 23.38%  21.97%
Proceeds from sale of property and equipment 43 63
Common equity tier 1 ratio 21.38% 19.97%
Purchase of intangible assets (1,177) (19)
Leverage ratio 14.33% 15.30%
Net cash from investing activities (1,000,411) 1,194,394 Liquidity ratio 87.99% 54.96%
Cash flows from financing activities Non-performing loans ratio 40.41% 41.80%

Proceeds from borrowings - - 4. Qualitative Disclosures

The Bank’s activities expose it to a variety of risks such as credit risk, liquidity risk, operational risks and market risks.
Repayment of borrowings - -
The Board of Directors has overall responsibility for the establishment and oversight of the Bank’s risk management framework. The
Payments of principal on lease liabilities (3,784) - Board has established a Risk Management Committee in support of their risk oversight objectives and responsibilities. There is also a
Risk Management Department which has responsibility for the implementation of the Bank’s risk control principles, frameworks and
Net cash used in financing activities (3,784) - processes across the entire risk spectrum.
Net increase/decrease in cash and cash equivalents (115,377) 180,050 The Bank’s risk management policies are established to identify and analyse the risks faced by the Bank, to set appropriate risk limits and
controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes
Cash and cash equivalents at 1 January 779,309 351,270 in market conditions, products and services offered. The Bank, through its training and management standards and procedures, aims to
develop a disciplined and constructive control environment, in which all employees understand their roles and obligations.
Cash and cash equivalents at 30 September 663,932 531,320 5. Defaults in prudential requirements and accompanying sanctions
Cash and cash equivalents for the purpose of statement of Sept 2021 Sept 2020
cashflow comprises: Default in statutory liquidity Nil 1
Cash and balances with Bank of Ghana 533,886 306,603 Sanctions (GHS’000) - 53
Less mandatory deposit reserve (366,828) (257,183) Default in prudential requirement (times) Nil Nil
Sanctions (GHS’000) - -
167,058 49,420

Due from other banks 336,639 399,726

Short term treasury bills 160,235 82,174

Kweku Awotwi Olalekan Balogun
Cash and cash equivalents at 30 September 663,932 531,320
Board Chairman MD/CEO

www.ubagroup.com Email: cfcghana@ubagroup.com Africa’s global bank