UBA’s subsidiaries outside Nigeria contributed a third of the group’s top-line and 45 percent of the profit for the year

One of Nigeria’s Tier-1 financial institutions, United Bank for Africa (UBA) Plc has posted its audited results for the financial year ended December 31, 2017, with a 16 percent year-on-year growth in profit before tax to N105 billion, compared to N90.6 billion in the 2016 financial year.

In its report released over the weekend, the pan-African financial institution recorded a significant growth in its pan-African subsidiaries as gross earnings grew substantially to N462 billion, up by 20 percent from N314 billion recorded in 2016.

Kennedy Uzoka, GMD/CEO of UBA, while commenting on the results, said: “The results underline the success of our strategy of expanding across Africa, diversifying revenues and capturing the broader business opportunities inherent in Africa’s growth.

“The results reinforce the sustainability of our business model and the capacity to deliver superior long-term returns to shareholders, as the economic and business environments improve.

“In 2017, we made strong progress in our strategic initiative of dominating transaction-banking across all our countries of operation, gaining market share in all lines of our business.

“Even as the non-oil sector of our largest country of operation, Nigeria, remained relatively weak, we still grew earnings by 20 percent to N462 billion, a third of which was attributable to non-funded income.”

Highlights of the Bank’s report are as follows:

– Its record shows a profit after tax grew to N78.6 billion, an 8.8 percent year-on-year growth compared to N72.3 billion in 2016.

– Operating income grew to N326.6 billion, a 20.6 percent increase compared to N270.9 billion recorded in 2016.

– Total assets peaked at N4.07 trillion, translating to a 16.1 percent year-on-year growth from the N3.50 trillion recorded in the 2016 financial year.

– In 2017, the bank’s net loans achieved a prudent 9.7 percent growth at N1.65 trillion

– Customer deposits grew to N2.73 trillion, representing a 10 percent year on year growth over the N2.49 trillion recorded in the 2016 financial year.

– The bank’s shareholders’ fund also rose by 18.2 percent to N529.4 billion in the 2017 financial year.

– The bank’s board proposed a final dividend of 65 kobo per every share of 50 kobo each. This final dividend proposal is in addition to the 20 kobo per share interim dividend paid after the audit of the 2017 half-year financial statements, thus putting the total dividend for 2017 financial year at 85 kobo per share, subject to the approvals of the shareholders.

UBA is a leading financial services group in sub-Saharan Africa, with a presence in 19 African countries, as well as the United Kingdom, the United States of America and France.

Recall that Guaranty Trust Bank (GTBank) Plc had on Thursday, March 14, 2018, released its audited financial results primarily driven by growth in interest income as well as e-payment revenues. Its profit before tax stood at ₦200.2billion, representing a growth of 21.3% over ₦165.1billion recorded in the corresponding year ended December 2016.

Source: Pulse

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