UBA records 44% growth in profit, grosses N247.2bn in Q3

Pan-African financial services group, United Bank for Africa (UBA) Plc, released its 9 months unaudited financial results for 2015 showing a strong 44 per cent rise in profit after tax to N48.6 billion and a 17 per cent rise in gross earnings to N247.2 billion.

The third quarter results also showed Net Operating Income (NOI) recorded a strong 21 percent growth to N167.4 billion, while the cost to income ratio remained within management’s guidance of 65 percent, compared to 68.7 per cent in the corresponding period of 2014.

In other indices, UBA closed the third quarter with total assets of N2.87 trillion, loan book of N1.01 trillion and a deposit base of N2.18 trillion.

“We have continued to sustain our financial performance in 2015, leveraging our unique pan-African platform and the strength of our committed work force in gaining competitive edge in the market place” said Phillips Oduoza, the Group Managing Director/CEO, UBA Plc.

He also attributed the impressive performance of the Bank to enhanced balance sheet efficiency and improving extraction of value from the bank’s channels. “We have also maintained our discipline on how, where and with whom we do business and I am happy with the results, as reflected in our earnings and asset quality” said Oduoza.

In the period under review, UBA maintained a Non-Performing Loan ratio of 2.1 percent and 0.6 percent cost of risk. These ratios are amongst the lowest in the banking industry.

Highlighting some of the significant achievements in the third quarter, the Bank’s GMD/CEO disclosed that UBA led a consortium of local banks to facilitate a USD1.2 billion syndicated facility for the National Oil Company in Nigeria, NNPC. Further reflecting the strength of the Bank, Global Credit Rating (GCR) affirmed UBA’s AA- (LCY) and BB- (FCY) credit ratings.

Also speaking on the results, the Group CFO, Ugo Nwaghodoh noted that the Bank’s entrepreneurial persistence continues to yield results as the Group increasingly extracts synergy opportunities across its African network.

“Our business in Africa, excluding Nigeria, contributed a quarter of our profit after tax in the period; a resounding benefit of our geographic diversification” said Nwaghodoh.

He assured that the Bank is encouraged by the improving performance metrics, assuring “we will not relent on our commitment to achieving desired scale, size and profitability in all our chosen markets.”

He explained that the Group’s balance sheet remains strong, with a 20% capital adequacy ratio and 49% liquidity ratio, noting that UBA will continue to balance the quest for earnings and growth, with the best sustainability principles.

The UBA Group is a leading financial institution in Africa, operating in 19 African countries, as well as New York, London and Paris. The Group provides a suite of banking services to over 8 million retail and corporate customers the continent and the rest of the world.