United Bank for Africa Plc (“UBA” or
“the Bank”), announced its Audited 2016 Half Year Financial Results for the
period ended 30 June 2016 showing the bank recorded gross earnings of N166
billion, net operating income of N109 billion and profit before tax of N40
billion.
The bank also recorded a significant
growth in total assets, rising 20% to N3.3 trillion, crossing the three
trillion mark. Following the sterling performance, the bank’s Board recommended
the payment of N0.20 interim dividend on every ordinary share of N0.50 each.
Speaking on the results, Kennedy Uzoka, the
GMD/CEO, UBA Plc said; the results have been achieved amidst waning economic
fundamentals.
“We delivered profit in excess of N40
billion and grew balance sheet by 20%, with our on-balance sheet total assets
crossing the N3 trillion mark. Even as Naira depreciation and
inflationary pressure increased the cost of doing business in Nigeria, we
leveraged our economics of scale, enhanced operational efficiency and Group
shared service structure to moderate our cost-to-income ratio by 90bps.”
UBA achieved several strong positives in its
performance for the half year. The bank’s net loan position rose 29% to N1.29
trillion partially boosted by the depreciation in the value of the Naira. UBA
also recorded a significant 16% growth in deposits to N2.41 trillion already
surpassing the 15% target growth in deposits set at the beginning of the year.
Another positive for UBA was a drop in cost to income ratio to 63% as at half
year compared to 64% in same period of 2015. It is noteworthy that the bank
maintained its strong asset quality, with non-performing loans ratio at 2.4%;
well below the CBN set limit of 5% for the banking industry.
Uzoka assured that; “UBA will sustain its
culture of keeping a healthy balance sheet, with strong liquidity and
capitalization, as reflected in the liquidity and BASEL II capital adequacy
ratios of 45% and 18% respectively.” He further stated; “notwithstanding the
current slowdown in economic activities, we see bright spots ahead, especially
as we see strong prospect to grow market share across all chosen economies,
through our enhanced dedication to customer service”.
Explaining the major drivers behind UBA’s
strong performance, the Group CFO, Ugo Nwaghodoh said; “This impressive
performance was driven by increased transaction volume, balance sheet growth
and efficiency as well as a disciplined management of operating cost. We
achieved a 60bps moderation in funding cost, despite the tighter interest rate
environment, as we continue to improve our deposit mix, towards low cost
savings and current accounts.”
Nwaghodoh said that UBA’s performance in
the period endorses the bank’s resilient ability to profitably grow its
business from sustainable core banking offerings.
“Notwithstanding the challenging macro and
regulatory environment, we achieved a 17.3% return on average equity in the
period” even as the total equity of the Bank grew 23% to N407 billion.
He explained that the bank’s African
subsidiaries continue to record significant milestones in their performance, as
two erstwhile loss making subsidiaries are now profitable and having positive
contribution to the bank’s bottom line.
“Overall, African subsidiaries, contributed
a quarter of the Group’s profit, with an even stronger outlook, as we deepen
our penetration of the respective markets, the Group CFO added.”
United Bank for Africa (UBA) Plc, is one of
Africa's leading banking Groups with operations in 19 African countries and
offices in three global financial centers: London, Paris and New York.
From a single country operation in Nigeria,
Africa's largest economy, UBA has evolved into a pan-African provider of
banking and related financial services, to more than 11 million customers,
through over 1000 Business Offices and diverse channels globally.
Tags
Business