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UBA’s half-year profit drops 5.51%

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UBA Kennedy Uzoka

United Bank for Africa (UBA) Plc has had its profit for first half of 2020 pared, reflective of the challenged operating environment triggered by coronavirus pandemic and other economic headwinds during the period.

The group reported a profit after tax (PAT) of N77.132 billion in 2020 from N81.628 billion recorded in 2019, representing a drop of 5.51 per cent while profit before tax stood at N90.372 billion from N98.233 billion, amounting to a decline of 8 per cent.

According to its results filed with the Nigerian Stock Exchange (NSE), the Group recorded N2.2 trillion in net loans to customers, representing a 6.1 per cent uptick even as deposits from customers increased impressively by 25.2 per cent to N4.8 trillion

However, the audited report project impressive outlook across key performance indices as well as increased contribution from its African subsidiaries.

regardless the challenging business and economic environment occasioned by the Covid-19, the pan African financial institution was able to deliver growth in its gross earnings, which rose to N300.6 billion up from N294 billion recorded in the same period of 2019 United Bank for Africa’s audited results for the nine months ended September 2020 posted a gross earnings of N454.393 billion against N428.742 billion, accounting for a growth of 5.98 per cent.

Net interest income grew by 8.4 per cent to N119.3billion, whilst net fee and commission income stood at N38.6billion, representing a 7.0 per cent increase compared to the similar period in 2019. As at June 30, 2020, the bank’s Total Assets surpassed the N6 trillion mark as it leaped to N6.8 trillion.

Operating income also grew by 7.7 per cent to N197.1 billion compared to N182.9 billion while profit before tax stood at N57.1bn from N70.3 billion in 2019, yielding a 14.4 per cent annualised return on average equity.

The bank’s Shareholders’ Funds remained strong at N634.7 billion up from N597.9 billion in December 2019, driven by growth in retained earnings, a reflection of UBA’s capacity for business growth.

In line with its culture of paying both interim and final cash dividend, the Board of Directors of UBA Plc declared an interim dividend of N0.17 per share for every ordinary share of N0.50 each held by its shareholders.

Commenting on the results, UBA’s Group Managing Director/Chief Executive Officer, Mr. Kennedy Uzoka, said: “Our 2020H1 results is yet another demonstration of the resilience of our business model in an extremely uncertain and tough operating environment.

“We recorded commendable growth in our underlying business in terms of customer acquisition, transaction volumes and balance sheet whilst inflation, depressed yield environment and exchange rate volatilities impacted our net earnings as anticipated.”

 

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