United Bank for Africa Plc., one of the largest financial institutions in Africa, with presence in 19 African countries and three global financial centers has continued with its impressive results for the financial year with a profit of N33.2bn, for the half year ended June 30, 2013, representing an increase of 9.2%, over the N30.4bn, recorded in the corresponding period of 2012.
Details of the Bank’s unaudited financial results presented to the Nigerian Stock Exchange (NSE) on Monday show impressive growth in key parameters. Gross earnings increased by 16.7 per cent to N125.98bn, from N107.91bn achieved in corresponding period of last year. In other details, operating income rose to N88.45bn, up 17.1 per cent over the N78.67bn recorded in the same period of 2012. Other Income earned by the Bank showed an increase of 17.1% from N34.09bn in half year 2012 to N37.357bn in current year.
On the Balance sheet side, deposits rose 13.5 per cent from N1.77trn in December 2012 to N2.01trn in June 2013 just as Total Assets recorded a 6.9 percent increase to N2.42trn by the end of June 2013. In a similar vein, Net Loans for the period amounts to N761.18bn, an increase of 10.7 percent over the N687.43bn recorded at the end of last financial year. Shareholders’ funds grew by 7.9 per cent to N207.60bn from N192.5bn recorded in December 2012.
In spite of the balance sheet growth recorded, UBA maintained strong risk ratios with a capital adequacy ratio of 22.3%, liquidity ratio of 53.5% and non-performing loans ratio of 2.0%. Loan to deposit ratio remained under 40% due to the stronger growth recorded in deposits
“We are pleased with our first half 2013 financial results; having operated under the revised CBN guideline on bank charges in the second quarter of the year, I am glad to announce that our plans to minimize the effect of the reduced fees and commissions are working. Our business fundamentals are improving with increased revenues from loans creation and improved asset quality. We will focus on driving our business to gain market share and operate profitably to enable us deliver value to our stakeholders.” said Mr. Phillips Oduoza, UBA’s Group Managing Director and Chief Executive Officer.
Oduoza maintained that UBA’s half year results represent another bold step by the bank in its pursuit of industry leadership. “The decisions we have taken so far are paying off, having recorded an improvement in revenue, as indicted in our guidance for the year. Our Africa subsidiaries continued to deliver re-assuring results, as most of them recorded profit in the first half of the year.”
According to him, “The results reflect continued improvement in asset quality; disciplined expense management and an articulated execution of our three tier strategic plan. We are well positioned for growth based on our solid balance sheet footing, robust capital and liquidity positions.”
However, Oduoza said, “While economic growth remains modest, there are signs that business returns will be much better. Our customers are the reasons we are in business, and we will not relent on our efforts to seek new and innovative ways of delivering unique and value adding products and services to meet their banking needs.”
UBA is a leading Pan African financial services Group with presence in 19 African countries, New York, London and Paris. Headquartered in Lagos, Nigeria, the Group provides commercial banking services to diverse customer groups across Africa.
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