.Declares 20k/share interim dividend
Pan-African financial institution, United Bank for Africa (UBA) Plc, has announced a 33.4% increase in pre-tax profits for the half year (H1) ended, June 30, 2021. The profits peaked at N76.2 billion from the N57.1 billion recorded a year earlier.
Similarly, the bank’s profit-after-tax advanced significantly by 36.3% higher at N60.58 billion despite the higher income tax expense increase by 26.4% year-year (y-y) to N15.61 billion.
The H1 audited financial results released at the Nigerian Exchange Limited (NDX), also showed impressive performance across major revenue lines, including a 5% growth in Gross Earnings to N316 billion Y-Y against N300.6 billion previously.
Also, the group’s Total Assets accelerated to N8.3 trillion by June end from N7.7 trillion at full year (FY) 2020, while customer deposits advanced 7.4% to N6.1 trillion in H1 from N5.7 trillion as at December end.
Furthermore, the group’s Shareholders’ Funds peaked at N752.5 billion, up from N724.1 billion FY 2020, showing strong resilience for internal capital generation.
Given the strong performance, the Board of Directors declared an interim dividend of 20 kobo/share for every ordinary share of 50 kobo each held by shareholders.
As a purpose-driven organisation, we remain resolute in our drive for sustained growth in customer acquisition, transaction volumes and balance sheet, as we consolidate our ‘Africa’s Global Bank’ market position in the years ahead, uplifting livelihoods across the continent.
Commenting, UBA’s Group Managing Director/Chief Executive Officer, Kennedy Uzoka, described the performance as “a strong first half for us, as global economic recovery exceeded expectations, creating a positive rub-off on consumer and corporate confidence, savings and investment activities.
“We saw this positively impact our business, as we continued to leverage our key strategic levers – People, Process and Technology, and our Customer first philosophy, to revolutionise customer experience at UBA.”
He noted that the group’s investment in the Rest of Africa (excluding Nigeria) continues to yield good results for the group. “The benefits of pan-African business diversification accruing to the Group is once again evident, with gross earnings and interest income growth of 5.1 per cent and 8.3 per cent respectively, despite the low yield environment in our largest market, Nigeria.
“We are making remarkable progress on our strategy that is progressively positioning UBA as the bank of choice on the continent, driven by our emphasis on tech-led innovation and best customer experience.”
Uzoka continued: “Our first half 2021 (H1 2021) performance reflects our progressive efforts in building on the strong momentum that we started the year with. As a purpose-driven organisation, we remain resolute in our drive for sustained growth in customer acquisition, transaction volumes and balance sheet, as we consolidate our ‘Africa’s Global Bank’ market position in the years ahead, uplifting livelihoods across the continent.”
Also speaking on the performance, the Group Chief Financial Officer (GCFO), UBA, Ugo Nwaghodoh, said: “The Group recorded RoAE of 17.5 per cent (from 15.1% in 2020H1), and a Net-Interest-Margin of 5.8 per cent (from 5.4% in H12020) as we played the volatile yield environment diligently for best return on our interest earning assets.
“Capital position remained strong, with a capital adequacy and liquidity ratios of 23.9 per cent (22.4% in 2020H1), and 58.3 per cent (58.2% in 2020H1) respectively. This is robust enough to support our growth ambitions.” he said.
Despite the volatile operating environment amid COVID-19-induced macroeconomic stress, Nwaghodoh assured that UBA will continue to build resilience through its geographically diversified business model to support headline earnings growth for the Group.
