UBA grows profit by 22 per cent to N72 billion

27 Mar 2017
Financial Nigeria


Gross earnings rose 22 per cent to N383.65 billion as against N314.84 billion in the previous year.

Kennedy Uzoka, Group Managing Director, United Bank for Africa Plc

United Bank for Africa has reported that its 2016 after-tax profit grew by 22 per cent to N72.26 billion, compared to N59.65 billion posted a year earlier, according to a statement released on Monday.

UBA’s profit growth was supported by a significant rise in the bank’s net trading and foreign exchange income to N43.82 billion from N20.37 billion in 2015. Increasing efficiency gains from cost management initiatives also positively impacted profit, the bank said.

Gross earnings rose 22 per cent to N383.65 billion as against N314.84 billion in the previous year. The bank said the performance was buoyed by considerable growth in both interest and non-interest income.

“Given the operating environment in 2016, I am very pleased with our profitability whilst we have also focused keenly on operational efficiencies, illustrated by the reduction in our Cost-to-Income Ratio,” said Kennedy Uzoka, UBA’s Group Managing Director.

Total assets rose by 27 per cent to N3.5 trillion compared to N2.75 trillion in 2015 due mainly to growth in loan and advances to customers.

For the period under review, UBA said basic earnings per share rose to N2.04 per share from N1.79 per share a year earlier. The bank has declared a final dividend of 55 kobo per share, taking total dividend to 75 kobo per share.

“We are approaching 2017 with real optimism, especially with the outlook remaining positive in many of our markets, where we benefit from our increasingly diverse revenue streams. We reiterate our pledge to delivering excellent service to our customers, and remain committed to creating superior and sustainable return for our shareholders,” Uzoka said.

At the Nigerian Stock Exchange, UBA’s stock rose 2.04 per cent to close at N5.5 per share on Monday.

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