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UBA records N61.6b profit in 9 months

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UBA records N61.6bn profit in 9 months

United Bank for Africa (UBA) recorded modest growths in top-line earnings and profit as the bank grew its profit before tax to N61.6 billion in the third quarter.

Interim report of the bank for the nine-month period ended September 30, 2016 released at the Nigerian Stock Exchange (NSE) indicated that gross earnings rose by 8.2 per cent to N265.53 billion in third quarter 2016 as against N245.49 billion in comparable period of 2015.

Profit before tax also rose by 7.3 per cent from N57.37 billion to N61.56 billion. Profit after tax increased by 7.64 per cent to N52.27 billion compared with N48.56 billion in comparable period of 2015. The bank stated that it leveraged on its expansive footprint as a pan-African banking group to blunt the challenging macro-economic environment.

The report also showed efficiency gains with appreciable growth in operating income by 11 per cent to N183 billion. Though partly driven by the depreciation in the value of the naira, UBA also recorded a significant 21 per cent year-to-date growth in deposits and a similar 26 per cent growth in total assets. The bank also ensured that cost-to-income ratio remained flat year-on-year at 65 per cent despite external cost pressures which masked the positive results of its cost efficiency initiatives.

Furthermore, the bank’s level of impairment in its overall loan book was moderate. The non-performing loan (NPL) ratio of 2.5 per cent and 0.9 per cent cost of risk remain one of the best in the industry. The bank maintained 43 per cent liquidity ratio and 17.6 per cent BASEL II capital adequacy ratio, well ahead of regulatory requirement.

Read also: 10 Nigerian banks close to distress –Report

Group managing director, United Bank for Africa (UBA) Plc, Kennedy Uzoka, described the results as pleasant performance noting that the bank has been able to maintain growth in earnings and sustain its asset quality notwithstanding the negative economic growth in Nigeria.

“Increasingly, we are leveraging our unique pan-African platform to drive new customer acquisition and grow market share across our African subsidiaries,” Uzoka said.

Also speaking on the results, Group chief financial officer, United Bank for Africa (UBA), Ugo Nwaghodoh, said the growth in deposits and total assets reflected the bank’s increased share of customers’ wallet and deepening banking penetration across all its chosen markets in Nigeria and Africa, which again accounted for a third of the group’s earnings.”

The Group CFO assured that UBA will continue to balance its appetite for growth and profitability with the strategy of sustaining strong liquidity and capital ratios.

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