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UBA records N60b pre-tax profit



NSE LIVE! UBA records N60b pre-tax profit

United Bank for Africa (UBA) Plc grew its net profit by 20 per cent to N60 billion in 2015 as the first generation bank rose above the tough macroeconomic environment to sustain its growth position.

Audited report and accounts of UBA for the year ended December 31, 2015 released to the Nigerian Stock Exchange (NSE) on Monday indicated that the bank recorded a 10% growth in gross earnings from N286.62 billion in 2014 to N314.83 billion in 2015. Profit before tax rose from N56.2 billion to N68.45 billion while profit after tax grew by 25% from N47.91 billion in 2014 to close 2015 at N59.65 billion.

Following the performance, the board of the bank has proposed a final dividend of 40 kobo per share. This brings to 60 kobo the total dividend for the 2015 financial year. UBA had earlier paid an interim dividend of 20 kobo per share, following the audit of its 2015 half year results.

Commenting on the result, Mr. Phillips Oduoza, group managing director, UBA, said the performance in 2015 was reflective of the strength of the company.

“Our 2015 profit is a new high, reflecting the hard work and discipline of our Board, Management and Staff in creating value for all stakeholders,” Oduoza said.

He said the bank’s resilient business model, geographic diversification, proactive strategies, and strong governance created an edge for it through the year.

“We will continue to invest in our future whilst managing cost tightly to generate strong returns to shareholders,” Oduoza

Read also: GTBank declares N52b dividend on N121b profit

Also speaking on UBA’s financial performance and position, the Group Chief Finance Officer (GCFO), Mr. Ugo Nwaghodoh said amidst macroeconomic volatilities, the bank was able to leverag efficiency gains in its business development and operations to grow earnings.

“We improved on our balance sheet management and pricing, thus ensuring a strong 19% growth in interest income as well as an enhanced net interest margin of 6.3%. Our improved service delivery and customized offerings helped in growing transaction banking volume, with attendant fee income. Whilst we were exposed to some external cost pressure, we managed to keep our cost growth at 5%,” Nwaghodoh said.

He expressed satisfaction at the performance of the bank’s Africa operations, particularly in synergy extraction and pursuit of scale economics to achieve market share and earnings targets.

“Precisely, UBA Africa contributed 24% of our Group’s profit before tax in the 2015, despite the impact of cross-currency depreciation in some of our markets. Whilst our cautious stance on lending in Nigeria moderated the loan book, we recorded a collective 14% loan growth in UBA Africa, as we deepen market penetration and our share of customers’ wallet. Our prudence and discipline in risk asset creation over the past half-decade sustained the quality of our loan portfolio; NPL ratio stabilized at 1.7% with full provisions coverage,” Nwaghodoh said.


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