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.
The tier one Bank had a strong start to the year, despite a protracted recession in Nigeria, its largest market as its declared profit after tax of N42 billion translates to 18.2 percent return on average equity (RoAE), broadly in line with the 2017 FY guidance.
Speaking on UBA’s financial performance and position, the Group CFO, Ugo Nwaghodoh said that the Bank’s African subsidiaries (ex-Nigeria) contributed 32 percent 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 percent. 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,” Nwaghodoh said.
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.
The performance which reflects the strong momentum of UBA’s business 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 a 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.
While the Group closed the half year with Total Assets of N3.69 trillion, a growth of 5.3 percent, it 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 percent return on average equity (RoAE) and an Interim Dividend of N0.20 per Share.
The Bank grew its retail savings and current account deposits by 23 percent and 5 percent YTD respectively.
United Bank for Africa Plc is a pan-African financial services group, with presence in 19 African countries, as well as the United Kingdom, the United States of America and France.
The Bank provides services to over 14 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.