UBA Records half year profit before tax of N40.270 billion

United Bank for Africa Plc yesterday reported profit before tax of N40.270 billion for the half year ended June 30, 2016, showing a marginal increase of 3.1 per cent from N39.046 billion recorded in the corresponding period of 2015. Profit after tax similarly rose from N31.999 billion in 2015 to N32.621 billion, the directors recommended an interim dividend of 20 kobo per share.

An analysis of the results showed the UBA recorded gross earnings of N165.5 billion, indicating a marginal fall from N165.7 billion in 2015. Net interest income stood at N107 billion, down from N14.9 billion, while net impairment charges rose from N2.211 billion to N6.8 billion. Fees and commission income grew from N30.357 billion to N36.936 billion, just as net trading and foreign exchange income improved from N18.217 billion to N19.637 billion.

The bank also recorded a significant growth in total assets, rising 20 per cent to N3.3 trillion, crossing the three trillion naira mark. Following the sterling performance, the bank’s Board recommended the payment of N0.20 interim dividend on every ordinary share of N0.50 each.

Commenting on the results, the Group Managing Director/CEO, UBA Plc, Mr. Kennedy Uzoka, said; “The results have been achieved amidst waning economic fundamentals. We delivered profit in excess of N40 billion and grew balance sheet by 20 per cent, with our on-balance sheet total assets crossing the N3trillion mark. Even as Naira depreciation and inflationary pressure increased the cost of doing business in Nigeria, we leveraged our economics of scale, enhanced operational efficiency and Group shared service structure to moderate our cost-to-income ratio by 90bps.”

UBA achieved several strong positives in its performance for the half year. The bank’s net loan position rose 29 per cent to N1.29 trillion partially boosted by the depreciation in the value of the Naira. UBA also recorded a significant 16 per cent growth in deposits to N2.41 trillion already surpassing the 15 per cent target growth in deposits set at the beginning of the year.

“UBA will sustain its culture of keeping a healthy balance sheet, with strong liquidity and capitalisation, as reflected in the liquidity and BASEL II capital adequacy ratios of 45 per cent and 18 per cent respectively,” Uzoka assured.