Over 1,145 Customers, Others Sue UBA, Claim N593.19bn

United Bank for Africa PLC is facing 1,146 litigations from customers and business partners who are claiming a total of N593.1bn.

But the lender’s directors do not see the amount claimed as serious audit issues, the bank said in its financial statement for June 2023, seen by THE WHISTLER.

The claim does not also amount to an admission of liability by the bank, the lender said.

UBA said, “The Group, in the ordinary course of business is currently involved in 1,146 legal cases (2022:1,422). The total amount claimed in the cases against the Group is estimated at N593.188 billion (2022: N666.124 billion).

“The directors having sought the advice of professional legal counsel, are of the opinion that no significant liability will crystalise from these cases beyond the provision made in the financial statements.”

The company’s books also showed that borrowing rose to N 595.8bn in June, a N60.1bn rise from the N535.7bn in December 2022.

The debts are dominated by – Eurobond debt security of N226.3bn; Abu Dhabi Commercial Bank N38bn; Proparco N45.6bn; African Development Bank N29.19bn; European Investment Bank N19.7bn; Agence Francaise de Development N14bn and others worth N2.69bn.

The lender however, paid N20.135bn as interest on borrowing, up from the N12.98bn paid in June last year.

Meanwhile, UBA declared N403.6bn profit before tax in June, up from the N85.75bn posted in the corresponding period of last year.

UBA’s revenue surged to N981.77bn during the period with the Nigerian segment accounting for N716.7bn, the books show.

In the first half of last year, the lender posted N372bn revenue with the Nigerian operations accounting for N218.89bn.