United Bank for Africa (UBA) Plc, the pan-African financial services group with operations in 19 African countries, delivered yet another strong and impressive financial performance for last year.
In its audited full results for the full year ended December 31, 2015, released to the Nigerian Stock Exchange (NSE) Monday, the bank recorded 10 per cent growth in gross earnings, closing at N315 billion and 25 per cent growth in profit-after-tax to N60 billion, translating into 20 per cent return on average equity.
Similarly, UBA grew operating income by 10 per cent to a record N205 billion by December, 2015, from N186 billion the previous year.
Following the performance, the board is proposing a final dividend of 40 kobo per share. This brings to 60 kobo the total dividend for the 2015 financial year. UBA had earlier paid an interim dividend of 20 kobo per share, following the audit of its 2015 half year results.
Commenting on the result, Mr Phillips Oduoza, Group Managing Director/Chief Executive Officer of UBA Plc said, “Our 2015 profit is a new high, reflecting the hardwork and discipline of our board, management and staff in creating value for all stakeholders. We remain committed to growing in a responsible manner that aligns with our vision of building an enduring institution.”
Oduoza said the bank’s resilient business model, geographical diversification, proactive strategies and strong governance created an edge for it through the year.
“We will continue to invest in our future while managing cost tightly to generate strong returns to shareholders,” he assured.
Also speaking about UBA’s financial performance and position, the group Chief Finance Officer, Mr Ugo Nwaghodoh said, “Amidst macroeconomic volatilities, we leveraged efficiency gains in our business development and operations to grow earnings. We improved on our balance sheet management and pricing, thus ensuring a strong 19 per cent growth in interest income as well as an enhanced net interest margin of 6.3 per cent.
“Our improved service delivery and customised offerings helped in growing transaction banking volume, with attendant fee income. While we were exposed to some external cost pressure, we managed to keep our cost growth at 5 per cent (below the average inflation rate of 9 per cent in Nigeria, our core market which represents three-quarters of our operations)”.
He expressed satisfaction with the performance of the bank’s Africa operations, particularly in synergy extraction and pursuit of scale economics to achieve market share and earnings targets. “Precisely, UBA Africa contributed 24 per cent of our Group’s profit before tax in the 2015, despite the impact of cross-currency depreciation in some of our markets.
“While our cautious stance on lending in Nigeria moderated the loan book, we recorded a collective 14 per cent loan growth in UBA Africa, as we deepen market penetration and our share of customers’ wallet. Our prudence and discipline in risk asset creation over the past half-decade sustained the quality of our loan portfolio; NPL ratio stabilised at 1.7 per cent with full provisions coverage,” he stated.
-Leadership
