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Economic Crunch: UBA Set To Reduce Working Hours To Save Cost



The United Bank for Africa (UBA) Plc has revealed plans to adjust working hours in some of its branches to ensure the well-being of employees and customers alike.

The bank stated this in a notification on Thursday entitled ‘Notice of Bank Closure’, sent across to its esteemed customers. “Please be informed that some of our branches will now close earlier for the safety of our customers and employees. Our digital channels will remain available to you 24/7,” the notification read.
But a source at one of the bank’s branches, however, told InsideBusiness that the decision was not unconnected with trying to reduce the company’s operational costs, as the energy crisis remained unsettled.

Usually, banks operate within the core hours of 8:00am to 4:00pm to render banking services to their teaming customers. UBA is however, adjusting its closing hours to 3.00pm.
InsideBusiness had reported last week that Access Holdings adjusted its operating hours in some of its branches, mostly in the hinterland, bringing forward the closing hour to 3:00pm.
Also, Guaranty Trust Holding Company (GTCO) had earlier in the year brought forward its closing hours in response to the surging energy price that saw diesel price rise to an all-time high at N800 per litre.

While other banks may in the coming weeks conform to reducing their routine work hours, a look at the UBA’s record book shows that operating expenses shot up marginally in the first quarter of this year.
According to the bank’s Interim Consolidated Financial Statements for the period ended March 31, 2022, total operating expenses rose by 20.46 per cent to N77.64 billion in Q1 2022 when compared to N64.45 billion expended in Q1 2021.

A further run down of the report shows that the amount UBA spent on fuel, repairs and maintenance shut up by 27.97 per cent to N8.56 billion in Q1 2022 from to N6.69 billion in the corresponding quarter of 2021.
While UBA reported a N121.71 billion net operating income for the review quarter, the total operating expenses trailed on the figure to leave its after-tax-profit to a paltry of N44.48 billion.

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