By HUMPHREY NKONDE
United Bank of Africa (UBA) has in the last nine months increased its profits by seven percent representing N62 billion before tax.
This is in spite of poor macro-economic environment in Nigeria, which has in recent months gone into recession.
UBA, a pan-African bank, has announced its growth in profit in a statement for the third quarter of 2016 that the bank has posted on its official website.
“This represents an impressive 18.2 annualised return on average equity,” says the bank’s statement.
UBA’s statement says that in spite of the economic challenges Nigeria was facing, it had posted a profit of N 62 billion between January and September this year.
Kennedy Uzoka, the UBA group managing director, has been quoted in the statement as saying that the bank was leveraging its unique pan-African platform to drive new customer acquisition.
According to the statement, the bank will grow a market share across African subsidiaries, among them one in Zambia that has opened a branch in central business district in Ndola on the Copperbelt.
“Further, the level of impairment in its overall loan book was moderate. The Non-performing Loans (NPL) ratio of 2.5 percent and 0.9 percent cost remain one of the best in the industry, “says the bank’s statement.
UBA has also noted that the bank’s third quarter results also show significant efficient gains with appreciable growth in operating income by 11 percent to N183 billion.
“Though partly driven by depreciation of the Naira [Nigeria’s legal currency], UBA also recorded a significant 21 percent year-on-date in deposits,” says the bank’s statement.
UBA has also registered a 26 percent growth in terms of total assets.
The bank has assured customers and members of the public that it will continue to balance its appetite for growth and profitability with the strategy of sustaining liquidity and capital ratio.
It has maintained a 43 percent liquidity ratio and 17.6 percent BASE II capital adequacy ratio.
This, the bank has said, was way above the banking regulatory requirement.
Established in 1949 in Nigeria, UBA has emerged to become a pan-African provider of banking and other financial services.
It is present in 19 African countries, the United States of America, United Kingdom and France.
It has expanded globally, boasting some 11 million customers, 632 business offices, 1,798 Automated Teller Machines (ATMs) and 13, 500 Points of Sale (PoS).
The pan-African bank has not been left out in terms of technology, as it services its customers using a mobile and banking platform.
In Zambia, UBA has opened a branch in Ndola following the entry into the manufacturing by Dangote Group of Companies, a Nigerian entity that is producing cement in city’s industrial area.