United Bank for Africa Plc (UBA) has recorded a 32.30 per cent growth in profit after tax to N82.628 billion for the nine months ended September 30, 2019 as against N61.698 billion in 2018.
The group in a filing with the Nigerian Stock Exchange (NSE) also reported a pre-tax profit of N98.233 billion during the period under review in contrast to N79.111 billion posted a year earlier, accounting for a growth of 24.17 per cent.
Its interest income also firmed up by 10.77 to N297.903 billion from N268937 billion reported in 2018.
The pan-African financial institution had delivered double digit growth in its profit before tax as it rose by 21 per cent to N70.3 billion for the half year to June 2019, up from N58.1 billion recorded in the similar period of 2018, just as the profit after tax also improved to N56.7 billion, a 29.6 per cent growth compared to N43.8 billion achieved in the corresponding period of 2018.
The profit for the first half of the year translated to an annualised return on average equity of 21.7 per cent.
According to the results filed with the Nigerian Stock Exchange, UBA recorded a 14 per cent year-on-year rise in top-line, with gross earnings of N293.7 billion, compared to N257.9 billion recorded in the corresponding period of 2018.
Analysts say that this result emphasises the capacity of the group to deliver a strong performance through economic cycles in spite of the overall challenging business environment.
As at June 30, 2019, the bank’s total assets grew by 4.8 per cent, crossing the N5 trillion mark to N5.10 trillion. Customer deposits also rose by 4.8 per cent to N3.51 trillion, compared to N3.35 trillion as at December 2018.
The growth trajectory underscores UBA’s market share gain, as it increasingly wins customers through its revitalised customer service culture coupled with innovative digital banking offerings. The bank’s shareholders’ funds remain strong at N542.5 billion, reflecting its strong capacity for internal capital generation.
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 N0.20 per share for every ordinary share of N0.50 each held by its shareholders.
Commenting on the results, the Group Managing Director/CEO, United Bank for Africa Plc (UBA), Mr. Kennedy Uzoka, said: “I am pleased with the half performance of the group, having delivered 14 per cent growth in gross earnings and 21 per cent growth in profit before tax. Despite the subdued yield environment in some of our large markets, we achieved a nine per cent growth in interest income and defended the net interest margin.
“We also achieved a 39 per cent growth in our electronic banking revenues, as we broaden and deepened our digital banking play across Africa. Revenues from our remittance and funds transfer businesses grew 69 per cent and 53 per cent respectively. All these factors attest to the efficacy of our strategies and the resilience of our business model.