Nigeria's United Bank for Africa (UBA) posted 16 percent growth in revenue at the end of its first six months of the year. The bank's gross earnings rose to 258 billion naira against 223 billion in the same period of last year.
The said despite declining yield environment in two core markets – Nigeria and Ghana – the lender showing strong growth across key performance metrics as well as a significant contribution from its African subsidiaries.
The performance, according to analysts, underscored the capacity of the UBA Group to deliver strong performance through economic cycles, even in a challenging business environment.
In a statement issued to the Nigerian Stock Exchange (NSE), the bank said it recorded strong growth in operating income at 168.5 billion naira, compared to 161.8 billion naira in the first half of 2017, an increase of 4.1 per cent.
Notwithstanding the inflation-induced cost pressure in the period, UBA posted a profit before tax of 58.1 billion naira.
The profit after tax also improved to 43.8 billion naira, a 3.4 percent growth compared to 42.3 billion naira achieved in the corresponding period of 2017.
The first half 2018 profit translated to pre-tax and post-tax return on average equity of 23 percent and 17 percent respectively.
In addition, the results showed that UBA’s foreign operations contributed 40 per cent of the Group’s profit, which according to analysts attested to the benefit of UBA’s pan-African strategy and reinforced the bank’s objective of achieving 50 per cent earnings contribution from offshore subsidiaries.
Also, in the first six months of the year, the bank’s total assets grew 4.9 per cent to 4.27 trillion nairaand customer deposits rose by 6.1 per cent to 2.90 trillion naira, compared to 2.73 trillion naira as at December 2017.
This growth trajectory underlined UBA’s market share gain, as it increasingly wins customers through its re-engineered customer service and innovative digital offerings.
Furthermore, the results showed that the Group’s shareholders’ funds remained strong at N496.3 billion, even as implementation of IFRS 9 impacted the total equity of the bank and its peers.
In line with its culture of paying both interim and final cash dividend, the board of directors of UBA Plc declared an interim dividend of 0.20 naira per share for every ordinary share of N0.50 each held on the qualification date – Wednesday, September 05, 2018.
Commenting on the results, the Group Managing Director/CEO, UBA, Kennedy Uzoka, said: “Our performance in the first half of the year reflects the resilience of our business model and strategies. Despite declining yields in two core markets, Nigeria and Ghana, we delivered double-digit growth in gross earnings. Our performance demonstrates the success of our digital banking initiatives and broader customer-first strategies.
“We are integrating banking to our customers’ lifestyle, simplifying processes for routine transactions and driving financial inclusion by making banking services accessible and affordable.
“We are creating opportunities for wealth creation and economic progress, as we empower our customers through innovative platforms and solutions that support their personal and business growth.
Our commitment to delivering excellent service is paying-off, as we increasingly win a bigger share of customers’ wallet across our chosen markets. We won the highly coveted ‘Africa’s Best Digital Bank’ award by Euromoney, demonstrating our pioneering initiatives are being recognised with Leo, our digital banker having been name checked by Mark Zuckerberg.”
“Our enhanced asset-liability management strategies improved asset yield and grew interest income by 21 per cent despite prevailing yield environment.
The performance, according to analysts, underscored the capacity of the UBA Group to deliver strong performance through economic cycles, even in a challenging business environment.
In a statement issued to the Nigerian Stock Exchange (NSE), the bank said it recorded strong growth in operating income at 168.5 billion naira, compared to 161.8 billion naira in the first half of 2017, an increase of 4.1 per cent.
Notwithstanding the inflation-induced cost pressure in the period, UBA posted a profit before tax of 58.1 billion naira.
The profit after tax also improved to 43.8 billion naira, a 3.4 percent growth compared to 42.3 billion naira achieved in the corresponding period of 2017.
The first half 2018 profit translated to pre-tax and post-tax return on average equity of 23 percent and 17 percent respectively.
In addition, the results showed that UBA’s foreign operations contributed 40 per cent of the Group’s profit, which according to analysts attested to the benefit of UBA’s pan-African strategy and reinforced the bank’s objective of achieving 50 per cent earnings contribution from offshore subsidiaries.
Also, in the first six months of the year, the bank’s total assets grew 4.9 per cent to 4.27 trillion nairaand customer deposits rose by 6.1 per cent to 2.90 trillion naira, compared to 2.73 trillion naira as at December 2017.
This growth trajectory underlined UBA’s market share gain, as it increasingly wins customers through its re-engineered customer service and innovative digital offerings.
Furthermore, the results showed that the Group’s shareholders’ funds remained strong at N496.3 billion, even as implementation of IFRS 9 impacted the total equity of the bank and its peers.
In line with its culture of paying both interim and final cash dividend, the board of directors of UBA Plc declared an interim dividend of 0.20 naira per share for every ordinary share of N0.50 each held on the qualification date – Wednesday, September 05, 2018.
Commenting on the results, the Group Managing Director/CEO, UBA, Kennedy Uzoka, said: “Our performance in the first half of the year reflects the resilience of our business model and strategies. Despite declining yields in two core markets, Nigeria and Ghana, we delivered double-digit growth in gross earnings. Our performance demonstrates the success of our digital banking initiatives and broader customer-first strategies.
“We are integrating banking to our customers’ lifestyle, simplifying processes for routine transactions and driving financial inclusion by making banking services accessible and affordable.
“We are creating opportunities for wealth creation and economic progress, as we empower our customers through innovative platforms and solutions that support their personal and business growth.
Our commitment to delivering excellent service is paying-off, as we increasingly win a bigger share of customers’ wallet across our chosen markets. We won the highly coveted ‘Africa’s Best Digital Bank’ award by Euromoney, demonstrating our pioneering initiatives are being recognised with Leo, our digital banker having been name checked by Mark Zuckerberg.”
“Our enhanced asset-liability management strategies improved asset yield and grew interest income by 21 per cent despite prevailing yield environment.
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