…………Declares N0.20 Per
Share Interim Dividend
…………..African Subsidiaries Contribute 32% of the Group’s Earnings
Lagos,
Nigeria – August 24, 2017 – The Pan African financial institution, United Bank for Africa (UBA) Plc has
announced its audited half year financial results ended June 30, 2017, showing
remarkable performance across major metrics.
UBA grew its gross earnings for
the period by 34.5 percent to N222.7 billion, as against N165.6 billion
reported in June 2016. This impressive performance, which reflects the strong
momentum of UBA’s business and its increasing share of customers’ wallet, was
driven by the 44.3 per cent and 16.0 per cent growth in interest income and
non-funded income respectively. The Group’s operating income stood at N161.8
billion, compared to N116.2 billion recorded in the corresponding
period of 2016, representing a 39.2 percent growth.
Notwithstanding the impact of
Naira devaluation and double digit inflation in Nigeria and a number of other
African countries where UBA operates, the Group managed through its cost lines
to deliver a sterling Profit Before tax (PBT) of N57.5 billion,
representing a significant growth of 65.5 percent over N34.8
billion recorded in the corresponding period of June 2016.
In same vein, the Group recorded
an unprecedented Profit After Tax (PAT) of N42.3 billion,
translating to a 56.2 percent growth over the N27.1 billion
recorded in the half-year of 2016. This profitability further reflects the
earnings capacity of the Group and its capability to progressively deliver
superior returns to shareholders.
While the Group closed the half
year with Total Assets of N3.69 trillion, a growth of 5.3 percent, it prudently
grew gross loans to N1.6 trillion, a 4 percent growth when compared to the
Group loan book as at 31 December 2016.
Reflecting a strong capacity for
internal capital generation, the Group’s Shareholders’ Fund grew by 8 percent
to N483.1 billion, whilst it delivered an annualized 18.2% return on average
equity (RoAE) and an Interim Dividend of N0.20 per Share.
Commenting on the result,
Kennedy Uzoka, the Group Managing Director/CEO, said that “the results again
demonstrate the strong momentum of the Bank, as we deliver continuous improvement
across our businesses and key performance metrics.”
He further stated that the
Bank’s “unwavering focus on customer service excellence is translating to
strong operational and financial efficiency gains. We have achieved
better pricing on assets and liabilities, leading to continued improvement in
the net interest margin to 7.3%. Leveraging our service-focused strategy and
treasury management, we grew non-interest income by 17% year-on-year,
reinforcing our transaction-banking-led approach towards deepening financial
inclusion in Sub-Saharan Africa.”
According to him, UBA has made
considerable progress in its retail banking penetration, gaining market share
in deposits, at a time when a sizeable percentage of households are challenged
due to inflationary pressures on disposable income. The Bank grew its retail
savings and current account deposits by 23% and 5% YTD respectively.
Also speaking on UBA’s financial
performance and position, the Group CFO, Ugo Nwaghodoh said that the Bank had
“a strong start in the year, despite protracted recession in Nigeria, our
largest market. Our profit after tax of N42 billion translates to
18.2% return on average equity, broadly in line with our 2017FY guidance."
He further said that the Bank’s
African subsidiaries (ex-Nigeria) contributed 32% of the Group’s earnings,
leveraging on digital offerings to gain market share across the different
markets. “We maintain our discipline of banking only quality and
profitable assets, a conservative stance which reflects on our asset quality.
Notwithstanding consistent liquidity mop-up by the CBN, we maintained an
average balance sheet liquidity ratio of 42%. Further reinforcing the Bank’s
capacity is the strong BASEL II capital adequacy ratio of 20%, which underpins
our ability to grow, as the macro risks decline, he said”
United Bank for Africa Plc is a leading
pan-African financial services group, with presence in 19 African countries, as
well as the United Kingdom, the United States of America and France.
UBA was incorporated in
Nigeria as a limited liability company after taking over the assets of the
British and French Bank Limited who had been operating in Nigeria since 1949.
The United Bank for Africa merged with Standard Trust Bank in 2005 and from a
single country operation founded in 1949 in Nigeria - Africa's largest economy
- UBA has become one of the leading providers of banking and other financial
services on the African continent. The Bank provides services to over14 million
customers globally, through one of the most diverse service channels in
sub-Saharan Africa, with over 1,000 branches and customer touch points and
robust online and mobile banking platforms.
UBA was the first Nigerian
bank to make an Initial Public Offering, following its listing on the NSE
in1970. It was also the first Nigerian bank to issue Global Depository
Receipts. The shares of UBA are publicly traded on the Nigerian Stock Exchange
and the Bank has a well-diversified shareholder base, which includes foreign
and local institutional investors, as well as individual shareholders.
