By Emmanuel Ukudolo
November 17, 2015 – Pan-African financial services group, United Bank for Africa (UBA) Plc has released its unaudited account for the last 9 months, showing a strong 44 percent rise in profit after tax to N48.6 billion.
Gross earnings of the bank also grew by 17 percent and peaked at N247.2 billion in the period under consideration.
Net Operating Income (NOI) for the period stood at N167.4 billion, showing a strong growth of about 21 percent. Cost to income ratio remained within management’s guidance of 65%, compared to 68.7% in the corresponding period of 2014, as UBA continued to focus on improving operational efficiencies to deliver superior return to its shareholders.
In other indices, UBA closed the third quarter with total assets of N2.87 trillion, loan book of N1.01 trillion and a deposit base of N2.18 trillion.
“We have continued to sustain our financial performance in 2015, leveraging our unique pan-African platform and the strength of our committed work force in gaining competitive edge in the market place” Group Managing Director/CEO, UBA Plc, Mr. Phillips Oduoza said.
He also attributed the impressive performance of the Bank to enhanced balance sheet efficiency and improving extraction of value from the Bank’s channels.
“We have also maintained our discipline on how, where and with whom we do business and I am happy with the results, as reflected in our earnings and asset quality” the CEO added.
In the period under review, UBA maintained a Non-Performing Loan ratio of 2.1 percent and 0.6 percent cost of risk, which are amongst the lowest in the banking industry.Highlighting some of the significant achievements in the third quarter, Oduoza disclosed that UBA led a consortium of local banks to facilitate a USD1.2 billion syndicated facility for the National Oil Company in Nigeria, NNPC.
Further reflecting the strength of the bank, Global Credit Rating (GCR) affirmed UBA’s AA- (LCY) and BB- (FCY) credit ratings.
Also speaking on the results, the Group CFO, Ugo Nwaghodoh noted that the Bank’s entrepreneurial persistence continues to yield results as the group increasingly extracted synergy opportunities across its African network.
“Our business in Africa, excluding Nigeria, contributed a quarter of our profit after tax in the period; a resounding benefit of our geographic diversification” said Nwaghodoh.
He assured that the bank is encouraged by the improving performance metrics, assuring “we will not relent on our commitment to achieving desired scale, size and profitability in all our chosen markets.”
He explained that the group’s balance sheet remains strong, with a 20 percent capital adequacy ratio and 49 percent liquidity ratio, noting that UBA will continue to balance the quest for earnings and growth, with the best sustainability principles.
The UBA Group is a leading financial institution in Africa, 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 retail and corporate customers in the continent and the rest of the world.
