United Bank for Africa (UBA) Plc has announced its audited results for the financial year ended December 31, 2017, showing significant growth in the contribution and market share from its pan-African subsidiaries, among other positive trends in its financial performance.

A statement from UBA at the weekend showed that the pan-African financial institution’s gross earnings grew substantially to N462 billion, up by 20 per cent from N314 billion recorded in the corresponding period of 2016.


According to the report released to the Nigerian Stock Exchange on Friday, UBA delivered a strong 16 per cent year-on-year growth in profit before tax to N105 billion, compared to N90.6 billion in the 2016 financial year. Its profit after tax also leaped to N78.6 billion, an 8.8 per cent year-on-year growth compared to N72.3 billion in 2016.

The bank’s subsidiaries outside Nigeria contributed a third of the group’s top-line and 45 per cent of the profit for the year, a remarkable improvement from the 31 per cent contribution made by the ex-Nigeria offices in 2016.

This, according to market analysts, affirmed the success of the bank’s expansion strategy, with a target of 50 per cent contributions by 2020, said the statement.

The bank’s operating income grew to N326.6 billion, a 20.6 per cent increase compared to N270.9 billion recorded in 2016. This, according to analysts, affirmed the capacity of the group to deliver strong performance through varying economic cycles and a challenging business environment.

The audited results also showed that the bank’s total assets peaked at N4.07 trillion, translating to a 16.1 per cent 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 per cent growth at N1.65 trillion, while customer deposits grew to N2.73 trillion, representing a 10 per cent YoY growth over the N2.49 trillion recorded in the 2016 financial year.

Reflecting strong internal capital generation, the bank’s shareholders’ fund also rose by 18.2 per cent to N529.4 billion in the 2017 financial year.

Subject to the approvals of the shareholders, 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.

Commenting on the results, Kennedy Uzoka, GMD/CEO of UBA, 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 per cent to N462 billion, a third of which was attributable to non-funded income.”

Also speaking on the bank’s performance, the Group Chief Finance Officer (GCFO), Ugo Nwaghodoh said: “In a period of high-interest rates, we achieved a relatively low 3.7 per cent cost of funds. This operational efficiency reflects the benefit of our rich pool of stable savings and current account deposits.

“Net interest margin stabilised at 7 per cent, even as yields on treasury assets dropped in the last quarter of 2017. Our core transaction banking offerings gained strong momentum, with income from these business lines growing by double digits.”

“We remain committed to our responsible approach to balance sheet management, with a focus on growing risk assets and a broader balance sheet in a profitable and prudent manner.

“Amidst a subdued Nigerian credit market, we grew our loan portfolio by 10 per cent, leveraging our robust liquidity and capitalisation to support good businesses through this challenging economic cycle.

“We closed the year with a Basel II capital adequacy ratio of 19 per cent and a liquidity ratio of 50 per cent, well ahead of the 15 per cent and 30 per cent regulatory requirement, respectively.

“Our disciplined approach to lending and broader risk management continue to uphold our asset quality,” he added.

Apart from the strong financial performance in 2017, the UBA Group proved its leadership on the continent as the Banker Magazine crowned the group, African Bank of the Year 2017, the statement added.

To further demonstrate the group’s strength and dominance in the financial sector on the continent, four of UBA Group’s operations in Africa also led contenders in their respective countries to emerge the Best Bank of the Year 2017.

UBA Congo, UBA Tchad, UBA Gabon and UBA Senegal emerged the Best Bank of the Year in Congo, Tchad, Gabon and Senegal, reinforcing the strong franchise of the group across its chosen markets in Africa.

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.

http://www.akelicious.net/2018/03/uba-reports-n1053bn-pbt-recommends-n085.html

This is good news for long term share holders of UBA.

Another FTC. Who gives this prize on FTC??

right

ok Please let us know when the prince of garri will reduce in your next post

Incredible

I know people will avoid this post like kilode.


They don't know that there are billions of dollars circulating in the financial market.

By the way, UBA look like a good stock to buy.


Check my signature.

Foolish bank... They can deduct the undeductable from your account with their baseless charges

The banks are making huge profits.
Rich men are expanding their businesses
Smart and hard working men are making huge trades and some getting promotions

The poor is not seeing opportunities abound around them
They listen to radios & newspaper are complain through the day
Their youths spend 24hrs on Nairaland & social medias, complaining no jobs, no food.
On social media, they slay and fail exams woefullly

wow

Good sheet, but other banks declare more dividend than this, UBA you can do better

Poor performance from a bank with such branch network and customer base. When T2 banks like stanbic is making close to 90billion PBT. African acclaimed global bank is boasting of 105billion. This shows that te management need to up thier game. Either staff management or customer service needs to be improved drastically

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Ok

Nigerian banks profit now mostly comes from non lending interest sources, this is bad for the economy, they invest in thing like fx , bonds and treasury bills instead of lending them to make interest

most useless bank. poor service delivery to customers

Meanwhile PDP is still in recession and hungry because no money to loot again. Their youth is now keyboard warriors as it's increasingly becoming difficult to commit crimes and go Scot-free as before.

Good news is that legit hustle now pay and profitable without ass licking of politicians ass.

brainpulse:
The banks are making huge profits.
Rich men are expanding their businesses
Smart and hard working men are making huge trades and some getting promotions

The poor is not seeing opportunities abound around them
They listen to radios & newspaper are complain through the day
Their youths spend 24hrs on Nairaland & social medias, complaining no jobs, no food.
On social media, they slay and fail exams woefullly

I hope you are making money too?

UBA a bank in dcline ...


The management needs a serious shake up!

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brainpulse:
The banks are making huge profits.
Rich men are expanding their businesses
Smart and hard working men are making huge trades and some getting promotions

The poor is not seeing opportunities abound around them
They listen to radios & newspaper are complain through the day
Their youths spend 24hrs on Nairaland & social medias, complaining no jobs, no food.
On social media, they slay and fail exams woefullly

Kw

patani:
Poor performance from a bank with such branch network and customer base. When T2 banks like stanbic is making close to 90billion PBT. African acclaimed global bank is boasting of 105billion. This shows that te management need to up thier game. Either staff management or customer service needs to be improved drastically

i couldnt agree with you more

Raise your hand or hit the like button If you don't understand these bank terms

My problem with these banks is that 60% of their workforce are on contract despite the huge billions they make as profit. What would it cost to convert a significant portion of their workforce to permanent staff. Well, they are capitalist, they want to make more profit.

A huge N105bn profit before tax and you are declaring less than a Naira dividend per share The shareholders need to be happy and not just that your rank of directors and managers lavish with investors money calling it "running cost".

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eluquenson:
Good sheet, but other banks declare more dividend than this, UBA you can do better

Why not present the dividend and the PBT of other banks let's see.
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UBA is bound to do well when you have a billionaire like Tony Elumelu as the chairman of the company 's boars if directors.

Oh

if u have an account with UBA click like

Oh

brainpulse:
The banks are making huge profits.
Rich men are expanding their businesses
Smart and hard working men are making huge trades and some getting promotions

The poor is not seeing opportunities abound around them
They listen to radios & newspaper are complain through the day
Their youths spend 24hrs on Nairaland & social medias, complaining no jobs, no food.
On social media, they slay and fail exams woefullly

Those smart hardworking men are not making their huge trades, using bank loans. UBA is useless when it comes to giving out loans to their customers.

einsteine:
I hope you are making money too?

No mind am...