UBA half-year profit rises by 65.5%
United Bank for Africa Plc has recorded a
significant rise of 65.5 per cent in its profit before tax for the
audited half-year financial results ended June 30, 2017.
Its PBT for the period stood at N57.5bn as against N34.8bn posted in the corresponding period of 2016.
The pan-African financial institution,
in a statement on Thursday, grew its gross earnings for the period by
34.5 per cent to N222.7bn, as against N165.6bn reported in June 2016.
The bank’s soaring business performance
and increasing share of customers’ wallet were 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 N161.8bn, compared
to N116.2bn recorded in the corresponding period of 2016, representing a
39.2 per cent 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 said it managed through
its cost lines to deliver a sterling result and grow shareholders’
In the same vein, the group recorded a
profit after tax of N42.3bn, translating to a 56.2 per cent growth over
the N27.1bn recorded in the half-year of 2016. This profitability, the
statement explained, further reflected the earnings capacity of the
group and its capability to progressively deliver superior returns to
While the group closed the half year
with total assets of N3.69tn, a growth of 5.3 per cent, it grew gross
loans to N1.6tn, a four per cent growth when compared to the group loan
book as at December 31, 2016.
Reflecting a strong capacity for
internal capital generation, the group’s shareholders’ fund grew by
eight per cent to N483.1bn, while it delivered an annualised 18.2 per
cent return on average equity and an Interim dividend of N0.20 per
In his comments with respect to the
result, the Group Managing Director/Chief Executive Officer UBA, Kennedy
Uzoka, said that, “The results again demonstrate the strong momentum of
the bank, as we deliver continuous improvement across our businesses
and key performance metrics.”
Uzoka said 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 per cent.
“Leveraging our service-focused strategy
and treasury management, we grew non-interest income by 17 per cent
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 per cent
and five per cent year-to-date,respectively.
Also commenting, the bank’s Group Chief
Financial Officer, Ugo Nwaghodoh, said the bank had “a strong start in
the year, despite protracted recession in Nigeria, our largest market.
Our profit after tax of N42bn translates to 18.2 per cent return on
average equity, broadly in line with our 2017 full-year guidance.”
He further said that the bank’s African
subsidiaries (ex-Nigeria) contributed 32 per cent of the group’s
earnings, leveraging digital offerings to gain market share across the