UBA’s net profit rises by 44% to N48.6b in Q3

In from Success Allantee . . .
United Bank for Africa (UBA) Plc yesterday released its interim earnings report for the third quarter, showing appreciable growths in gross earnings and profitability.
The first financial institution to submit third-quarter earnings report, UBA recorded 17 per cent growth in gross earnings and 44 per cent increase in profit after tax. Group gross earnings rose to N247.21 billion in third quarter 2015 as against N210.72 billion recorded in comparable period of 2014. Net interest income had risen from N81.96 billion to N102.12 billion. Net operating income also rose from N136.04 billion to N162.03 billion. Profit before tax grew by 35 per cent from N42.54 billion to N57.37 billion. After taxes, net profit rose by 44 per cent from N33.63 billion to N48.56 billion.
Further analysis showed that the cost to income ratio remained within management’s guidance of 65%, compared to 68.7% in the corresponding period of 2014, as UBA continued to focus on improving operational efficiencies to deliver superior return to its shareholders. UBA closed the third quarter with total assets of N2.87 trillion, loan book of N1.01 trillion and a deposit base of N2.18 trillion.
Group managing director, United Bank for Africa (UBA) Plc, Mr. Phillips Oduoza, attributed the bank’s performance to enhanced balance sheet efficiency and improving extraction of value from the bank’s channels, noting that the bank has been able to maintain its discipline on how, where and with whom it does business, as reflected in its earnings and asset quality.

Read also: UBA to pay N7.2b interim dividend

“We have continued to sustain our financial performance in 2015, leveraging our unique pan-African platform and the strength of our committed work force in gaining competitive edge in the market place,” Oduoza said.
Group Chief Financial Officer, United Bank for Africa (UBA) Plc, Ugo Nwaghodoh said that the bank’s entrepreneurial persistence continues to yield results as the group increasingly extracts synergy opportunities across its African network.
“Our business in Africa, excluding Nigeria, contributed a quarter of our profit after tax in the period; a resounding benefit of our geographic diversification,” Nwaghodoh said.
He pointed out that the group’s balance sheet remains strong, with a 20 per cent capital adequacy ratio and 49 per cent liquidity ratio, adding that UBA will continue to balance the quest for earnings and growth, with the best sustainability principles.

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