United Bank for Africa (Ghana) Ltd.

Audited Financial Statements for the year ended 31 December 2021

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2021

(All amounts are expressed in Ghana cedis unless otherwise stated) (All amounts are expressed in Ghana cedis unless otherwise stated)
31 Dec 2021 31 Dec 2020 31 Dec 2021 31 Dec 2020
Interest income 506,884,566 530,392,323 Assets
Cash and bank balances 1,040,251,267 951,072,339
Interest expense (169,547,713) (218,296,404)
Investment securities:
Net interest income 337,336,853 312,095,919 - At amortised cost 2,717,849,080 1,249,506,992
Fees and commission income 72,937,435 59,558,454 - At fair value through other comprehensive income 64,191,145 472,509,032
Fees and commission expense (18,737,068) (11,916,002) Loans and advances to customers 1,032,519,321 1,108,455,471

Net fees and commission income 54,200,367 47,642,452 Other assets 431,298,690 85,021,723
Property and equipment 63,388,093 67,328,683
Net trading and revaluation income 56,982,072 46,400,700
Intangible assets 1,656,104 709,003
Other operating income 931,237 1,382,354 Income tax asset 8,594,131 12,497,649
Net trading and other income 57,913,309 47,783,054 Deferred tax asset 13,452,036 3,045,372
Net operating income 449,450,529 407,521,425 Total assets 5,373,199,867 3,950,146,264

Allowance for credit losses on financial assets (95,265,683) (61,102,973) Liabilities

Deposits from customers 4,075,498,353 2,786,764,201
Personnel expenses (65,856,828) (61,186,566)
Deposits from banks 59,049,587 72,444,352
Depreciation and amortization (11,783,794) (11,231,646) Other liabilities 105,970,684 99,189,281
Other operating expenses (57,730,110) (50,089,442) Total liabilities 4,240,518,624 2,958,397,834
Profit before income tax 218,814,114 223,910,798 Equity
Income tax expense (77,049,377) (61,694,568) Stated capital 400,000,000 400,000,000
Income surplus 395,669,959 289,346,406
Profit for the year 141,764,737 162,216,230
Fair value reserve 13,612 845,536
Other comprehensive income Credit risk reserve - -
Items that will be reclassified to the income statement Statutory reserve 336,997,672 301,556,488
Net change to fair value during the year (net of tax) (831,924) (432,471) Total equity 1,132,681,243 991,748,430
Total comprehensive income for the year 140,932,813 161,783,759 Total liabilities and equity 5,373,199,867 3,950,146,264

Basic and diluted earnings per share 0.02 0.02

STATEMENT OF CHANGES IN EQUITY
STATEMENT OF CASHFLOWS (All amounts are expressed in Ghana cedis unless otherwise stated)
(All amounts are expressed in Ghana cedis unless otherwise stated)
For the year ended 31 December 2021
31 Dec 2021 31 Dec 2020

Cash flows from operating activities Income Statutory Credit risk Fair value
Stated capital Total
surplus reserve reserve reserve
Profit before income tax 218,814,114 223,910,798
At 1 January 2021 400,000,000 289,346,406 301,556,488 - 845,536 991,748,430
Adjustments for: Profit for the year - 141,764,737 - - - 141,764,737
Depreciation and amortisation 11,783,794 11,231,647 Net change to fair value
- - - - (831,924) (831,924)
during the year (net of tax)
Allowance for credit loss on loans to customers 97,238,081 61,375,691
Total comprehensive
Allowance for credit loss on other assets - - - 141,764,737 - - (831,924) 140,932,813
income for the year
Reversal/allowance for credit loss on contingent liabilities (68,416) 23,810 Transfer between
reserves
Allowance for credit loss on investment securities (1,400,000) 11,147
Transfer to statutory reserve - 35,441,184) 35,441,184 - - -
Reversal/allowance for credit loss on placements with
banks - (67,339) Total transfer between
- (35,441,184) 35,441,184 - - -
reserves
Recoveries on loans written off (503,982)
Transactions with owners
Finance cost on lease liabilities 1,300,131 2,279,451 Total transactions with
- - - - - -
owners
Gain on disposal of property and equipment (18,323) (62,008)
At 31 December 2021 400,000,000 395,669,959 336,997,672 - 13,612 1,132,681,243
Write-off of property and equipment 182,619 102,172
Foreign currency exchange difference (5,734,989) (1,136,873)-
At 1 January 2020 400,000,000 159,303,031 261,002,431 8,381,202 1,278,007 829,964,671
Net interest income (337,336,853) (312,095,919) Profit for the year - 162,216,230 - - - 162,216,230
(15,743,824) (14,427,423) Net charge in fair value
- - - - (432,471) (432,471)
Change in operating assets and liabilities during the year (net of tax)
Change in mandatory reserve deposits (128,873,415) (44,796,420) Total comprehensive
- 162,216,230 - - (432,471) 161,783,759
income for the year
Change in loans and advances to customers (20,797,949) (221,223,824)
Transfer between
Change in other assets (346,554,276) (55,639,864) reserves
Change in deposits from banks (13,394,765) (1,165,918,909) Transfer to statutory reserve - (40,554,057) 40,554,057 - - -
Change in deposits from customers 1,288,734,152 447,964,196 Transfer to/from credit risk
- 8,381,202 (8,381,202) - -
Change in other liabilities 12,129,854 20,751,600 reserve -

Interest received 506,884,565 530,392,323 Total transfer between

- (32,172,855) 40,554,057 (8,381,202) - -
reserves
Interest paid (170,847,844) (220,575,855)
At 31 December 2020 400,000,000 289,346,406 301,556,488 - 845,536 991,748,430
Income tax paid (83,275,215) (71,342,587)
Net cash (used in)/from operating activities 1,028,261,283 (794,816,763)
Cash flows from investing activities NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
Purchase of investment securities (4,216,206,737) (3,458,396,509)
The summary financial information presented in this publication is an extract from the annual report for the year ended 31
Proceeds from sale/redemption of investment securities 3,215,256,935 4,727,123,484
December 2021. The annual report is available for inspection at the Bank’s Head Office at Heritage Towers, Ambassadorial
Purchase of property and equipment (7,704,335) (34,326,675) Enclave, Accra.
Proceeds from sale of property and equipment 22,930 64,574
1.Reporting Entity
Purchase of intangible assets (1,273,196) (675,153) 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
Net cash from/(used in) investing activities (1,009,904,403) 1,233,789,721
Deposit-Taking Institutions Act, 2016 (Act 930).
Cash flows from financing activities
Payments of principal on lease liabilities (5,280,032) (12,071,207) The Bank is a subsidiary of United Bank for Africa Plc of Nigeria and provides retail, corporate banking and investment banking
services. The financial statements for the year ended 31 December 2021 were approved and authorised for issue by the Board
Net cash used in financing activities (5,280,032) (12,071,207) of Directors on 23 March 2022.
Net decrease in cash and cash equivalents 13,076,848 426,901,751
2. Summary of Significant Accounting Policies
Foreign currency exchange difference 5,734,989 1,136,873
Cash and cash equivalents at 1 January 779,308,505 351,269,881 The detailed accounting policies are part of the annual report which is available for inspection at the Bank’s Head Office at
Heritage Towers, Ambassadorial Enclave, Accra. These policies have been consistently applied to all the years presented, unless
Cash and cash equivalents at 31 December 798,120,342 779,308,505
otherwise stated.
Cash and cash equivalents for purposes of the statements of
cash flows comprises:
3. Basis of Preparation
Cash and balances with Bank of Ghana 553,564,039 466,731,403
The Bank’s financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS).
Due from other banks 486,687,228 484,340,936 The financial statements have been prepared under the historical cost convention, except for financial assets measured at fair
value through other comprehensive income. Additional information required under the Companies Act, 2019 (Act 992) and the
1,040,251,267 951,072,339
Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930) have been included, where appropriate.
Mandatory deposit reserve (407,549,835) (278,676,420)
The same accounting policies and methods of computation were followed in preparation of these financial statements as
Unrestricted cash and bank balances 632,701,432 672,395,919 compared with the Bank’s most recent annual financial statements. Details of the Bank’s significant accounting policies are
Short term treasury bills 165,418,910 106,912,586 disclosed in note 3 of the financial statements.

798,120,342 779,308,505 These financial statements are presented in Ghana cedi which is the Bank’s functional currency.

www.ubagroup.com Email: [email protected] Africa’s global bank

United Bank for Africa (Ghana) Ltd.
Audited Financial Statements for the year ended 31 December 2021
Nature of business
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (CONTINUED)
The Bank is licensed to carry out universal banking business in Ghana. There was no change in the nature of the bank’s
4. Quantitative Disclosures business during the year.

Directors and their interests

31 Dec 2021 31 Dec 2020
Capital adequacy ratio 22.8% 24.4% None of the Bank’s directors has any direct or indirect interest in the issued share capital of the Bank.
Common equity tier 1 ratio 22.8% 24.4%
No director had a material interest, at any time during the year, in any contract, other than a service contract with the
Leverage ratio 13.1% 15.4% Bank. All contracts with related parties during the year were conducted at arm’s length
Liquidity ratio 86.9% 74.3%
Dividend
Gross non-performing loans ratio 29.4% 44.3%
The directors do not recommend the payment of a dividend (2020: nil).
5. Qualitative Disclosures
Auditors
The Bank’s activities expose it to a variety of risks such as credit risk, liquidity risk, operational risks and market risks.
Messrs Deloitte & Touche have indicated their willingness to continue in office as auditors in accordance with the
The Board of Directors has overall responsibility for the establishment and oversight of the Bank’s risk management Companies Act 2019, (Act 992) and in line with the provisions of the Banks and Specialised Deposit-Taking Institutions
framework. The Board has established a Risk Management Committee in support of their risk oversight objectives and Act, 2016 (Act 930).
responsibilities. There is also a Risk Management Department which has responsibility for the implementation of the
Bank’s risk control principles, frameworks and processes across the entire risk spectrum. On behalf of the Board

The Bank’s risk management policies are established to identify and analyse the risks faced by the Bank, to set appro-
priate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are
reviewed regularly to reflect changes in market conditions, products and services offered. The Bank, through its train-
ing and management standards and procedures, aims to develop a disciplined and constructive control environment,
in which all employees understand their roles and obligations.

Kweku Awotwi Chris Ofikulu

6. Defaults in prudential requirements and accompanying sanctions Board Chairman MD/CEO
2021 2020 23 March 2022 23 March 2022

Default in statutory liquidity

Sanctions (GHS) Nil Nil
Defaults in other requirements (times) - -
Sanctions (GHS) Nil 1
- 53,480

7. Value Added Statement

31 Dec 2021 31 Dec 2020

Interest and other operating income 579,822,001 589,950,777
Direct cost of services (242,621,443) (277,635,285)
Value added by banking services 337,200,558 312,315,492
INDEPENDENT AUDITOR’S REPORT ON SUMMARY FINANCIAL STATEMENTS
Non-banking income 57,913,309 47,783,054
Impairments (95,265,683) (61,102,973) TO THE SHAREHOLDERS OF UNITED BANK FOR AFRICA (GHANA) LIMITED

Value added 299,848,184 298,995,573 Our opinion

Distributed as follows:
The summary financial statements of United Bank for Africa (Ghana) Ltd, which comprise the summary statement of
To employees: financial position as at 31 December 2021, the summary statements of profit or loss and other comprehensive income,
Directors (without executives) 3,393,448 2,666,563 statement of changes in equity and statement of cash flows for the year then ended, and related notes, are derived
from the audited financial statements of United Bank for Africa (Ghana) Ltd for the year ended 31 December 2021.
Executive directors 1,664,061 1,380,879
Other employees 64,192,767 59,805,686 In our opinion, the accompanying summary financial statements are consistent, in all material respects, with the au-
dited financial statements of United Bank for Africa (Ghana) Ltd, in accordance with the requirements of the Bank of
69,250,276 63,853,128
Ghana Guide for Financial Publication for Banks and BOG Licensed Financial Institutions.
To government:
Summary Financial Statements
Income taxes 77,049,377 61,694,568
To providers of capital: The summary financial statements do not contain all the disclosures required by the International Financial Reporting
To expansion and growth Standards and the requirements of the Companies Act, 2019 (Act 992), and the Banks and Specialised Deposit-Taking
Institutions Act, 2016 (Act 930) as applicable to annual financial statements. Reading the summary financial state-
Depreciation 11,457,698 11,033,410 ments and the auditor’s report thereon, therefore, is not a substitute for reading the audited financial statements
Amortisation 326,096 198,237 of United Bank for Africa (Ghana) Ltd and the auditor’s report thereon. The summary financial statements and the
audited financial statements do not reflect the effect of events that occurred subsequent to the date of our report on
141,764,737 162,216,230 the audited financial statements.

The Audited Financial Statements and Our Report Thereon

We expressed an unmodified audit opinion on the audited financial statements in our report dated 30 March 2022.
That report also includes the communication of other key audit matters as reported in the auditor’s report of the
SUMMARY REPORT OF THE DIRECTORS audited financial statements. Key audit matters are those matters that in our professional judgements, were of most
significance in our audit of the financial statements of the current period.
In accordance with the requirements of Section 136 of the Companies Act 2019 (Act 992) we, the Board of United Bank
for Africa (Ghana) Limited submit herewith the annual report on the state of affairs of the Bank for the year ended 31 Directors’ Responsibility for the Summary Financial Statements
December 2021.
The directors are responsible for the preparation of the summary financial statements in accordance with the require-
Statement of directors’ responsibilities ments of the Bank of Ghana Guide for Financial Publication for Banks and BOG Licensed Financial Institutions.

The Companies Act 2019 (Act 992) requires the directors to prepare financial statements for each financial year which Auditor’s Responsibility
give a true and fair view of the state of affairs of the Bank as at the end of the financial year and of the operating results
of the Bank for that year. Our responsibility is to express an opinion on whether the summary financial statements are consistent, in all material
respects, with the audited financial statements based on our procedures, which were conducted in accordance with
It also requires the directors to ensure that the Bank keeps proper accounting records which disclose with reasonable International Standard on Auditing (ISA) 810 (Revised), Engagements to Report on Summary Financial Statements.
accuracy at any time the financial position of the Bank. They are also responsible for safeguarding the assets of the
Bank. Report on Other Legal and Regulatory Requirements

The directors are responsible for the preparation of financial statements that give a true and fair view in accordance In accordance with our full audit report, we confirm that:
with International Financial Reporting Standards and the requirements of the Companies Act 2019 (Act 992) and the • The Bank generally complied with the provisions of the Companies Act, 2019 (Act 992).
Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930). This responsibility includes: designing, imple- • The Bank generally complied with the provisions of the Banks and Specialised Deposit-Taking Institutions Act,
menting and maintaining internal controls relevant to the preparation and fair presentation of financial statements 2016 (Act 930).
that are free from material misstatement, whether due to fraud or error, selecting and applying appropriate accounting
policies, and making accounting estimates that are reasonable in the circumstances. The engagement partner on the audit resulting in this independent auditor’s report is Daniel Kwadwo Owusu
(ICAG/P/1327)
The directors accept responsibility for the annual financial statements, which have been prepared using appropriate
accounting policies supported by reasonable and prudent judgements and estimates, in conformity with International
Financial Reporting Standards and the requirements of Companies Act 2019 (Act 992) and the Banks and Specialised
Deposit-Taking Institutions Act, 2016 (Act 930). The directors are of the opinion that the financial statements give a true
and fair view of the state of the financial affairs of the Bank and of its operating results. The directors further accept
responsibility for the maintenance of accounting records which may be relied upon in the preparation of financial
statements, as well as adequate systems of internal financial control. For and on behalf Deloitte & Touche (ICAG/F/2022/129)
Chartered Accountants
Nothing has come to the attention of the directors to indicate that the Bank will not remain a going concern for at least The Deloitte Place, Plot No. 71
the next twelve months from the date of this financial statements. Off George Walker Bush Highway
Accra - Ghana
Holding Company

The Bank is a subsidiary of United Bank for Africa Plc, a company incorporated in the Federal Republic of Nigeria and 30 March 2022
licensed to undertake all banking and related services.

www.ubagroup.com Email: [email protected] Africa’s global bank