UBA 2015 half-year Profit After Tax grows by 40 per cent

03 Sep 2015
Financial Nigeria

Summary

UBA, a Nigerian Pan-African financial services group, also declared an interim dividend of 20 kobo per share.

CEO, UBA Plc, Phillips Oduoza

United Bank for Africa Plc (UBA) has announced its audited 2015 half-year financial results.

Highlights of the result which was released at the Nigerian Stock Exchange include 40 per cent rise of Profit After Tax (PAT), year on year; and Earnings per Share (EPS) is up 32.4 per cent to N0.94 (annualized: N1.88) from N0.71 (annualized: N1.42) the previous year, according to analysis of the results by CardinalStone Research.

UBA, a Nigerian Pan-African financial services group, also declared an interim dividend of 20 kobo per share, with a closure date of September 10, 2015 and a payment date of September 16, 2015.

Other highlights include 20.8 per cent increase in gross earnings to N166.9 billion, buoyed by strong net-interest income, and 26.4 per cent increase in non-interest income to N46.6 billion.

According to Phillips Oduoza, CEO of UBA: “Net operating income rose 21% to N108.7 billion in June 2015, compared to N90 billion in the comparable period of 2014. The Bank has continued to focus on operational efficiency, with a cost to income ratio of 64%; as against 68% in the same period in 2014."

He further said: “We delivered strong growth of 21% in gross earnings and 40% in profit after tax, reflecting better extraction of value across all business segments and our ongoing process optimization. It was also satisfying to see our cost-to-income ratio decline further.”

The results show the Africa strategy of the bank has begun to positively impact its performance. UBA’s African subsidiaries outside Nigeria contributed 23 per cent to its PAT.

Speaking on the performance of the bank’s African subsidiaries, Group Chief Financial Officer (CFO), Ugo Nwaghodoh said; “Our business in Africa (ex-Nigeria) is beginning to significantly impact our returns, contributing 23% of profit after tax, with an even stronger outlook”.

The results also show UBA maintained a healthy loan book during the accounting period. Its non-performing loan (NPL) ratio, at 1.8 per cent of total loans granted, is one of the lowest in the Nigerian banking industry.

The UBA Group is one of Africa’s leading financial institutions, operating in 19 African countries, as well as New York, London and Paris. The Group provides a suite of banking services to over 8 million individual and corporate clients across Africa, priding itself on bringing financial inclusion to the continent and supporting Africa’s next generation of entrepreneurs.


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