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UBA Makes N106.8 Billion Profit

UBA (Photo: Twitter)

There is no doubt that the United Bank for Africa (UBA) is a leading pan-African financial group as it makes N106.08 billion in profit. The bank was incorporated in Nigeria as a limited liability company after taking over the assets of the British and French Bank Limited which had been operating in Nigeria since 1949. The United Bank for Africa merged with Standard Trust Bank in 2005 and from a single country operation founded in 1949 in Nigeria – Africa’s largest economy – UBA has become one of the leading providers of banking and other financial services on the African continent.

UBA (Photo: Lagos Television)

Following the 2018 financials filed at the Nigerian Stock Exchange last Tuesday, there is no doubt that the Africa’s Global Bank’s gross earnings grew by 7.0 per cent to N494.0 billion, in comparison to N461.6 billion recorded in the corresponding period of 2017. The bank’s total assets also grew significantly by 19.7 per cent to an unprecedented N4.9 trillion for the year under review.

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The bank’s Profit Before Tax was quite impressive at N106.8 billion, a 2.4 per cent growth, compared to N104.2 billion in 2017 financial year. In the same vein, the Profit After Tax rose by 1.4 per cent to N78.6 billion, compared to N77.5 billion recorded in 2017.

The Group Managing Director/CEO, Mr. Kennedy Uzoka, notified that the year 2018 was important for the group, as it gained expand its market shares in many countries of operation.

Uzoka (Photo: Dope TV)

More so, the CEO was excited at strategic achievements made in the year, including the start of wholesale banking operations in London, as it seeks to leverage the Group’s unique network across Africa. UBA also opened its 20th African operation…

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“Defying the relatively weak economic growth in Africa, earnings were positive and we grew our balance sheet by 20 per cent, driven by the 23 percent growth in our deposit funding. In a period of economic uncertainty, we have focused on retail deposit mobilisation, with exciting results.

“We recorded a 48 per cent year-on-year growth in retail deposits and improved our CASA ratio to 77 per cent, optimising our funding mix, which will enhance our net interest margin (NIM), over the medium term.”

“Our operations in the United Kingdom now offer end-to-end trade, treasury, structured finance, wholesale deposit taking and ancillary services. With this development, we are better positioned to fulfill our aspiration of deepening trade and capital flows between Europe and Africa. We are also pleased with the market acceptance of our new operation in Mali.

“Having said this, I am excited by the profitability of our ex-Nigeria subsidiaries, which now contributes an impressive 40 per cent earnings to the group. At the moment, our Nigerian business is benefiting from our product and operational focus, gaining market share – most importantly, the increasing penetration of our retail offerings is reassuring as this fundamental progress aligns with our strategy of focusing on sustainable growth.

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“With great optimism, we look forward to a more rewarding 2019 for our shareholders, as we further sweat our resources and optimize productivity towards delivering superior returns.”

The Group CFO, Mr. Ugo Nwaghodoh, said; “Whilst considerable investment in people, digital transformation and channel enhancement masked cost efficiency gains within the year, with cost-to-income ratio at 64 per cent, we are convinced that our diligent execution of new initiatives will ensure the reduction of Cost to Income Ratio (CIR) towards our medium-term target.”

“Our balance sheet is being positioned to take full advantage of market swings and our strong 25 per cent capital adequacy ratio provides headroom for growth, even under a BASEL III scenario. As it stands, UBA has started the year on a good note and should sustain the momentum, as we work towards improving our Return on Average Equity (RoAE).”

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