Home Business UBA Announces 20.9 % Increase in Total Assets to N6.77trn

UBA Announces 20.9 % Increase in Total Assets to N6.77trn

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…proposes N0.17k interim dividend

United Bank for Africa Plc (UBA) Plc has released half year ended June 30, 2020 audited results with the Bank’s total assets also grew significantly by 20.9 per cent to an unprecedented N6.77 trillion for the half year under review from N5.6billion reported in full year ended December 31, 2019.

UBA recorded a remarkable 6.1 per cent growth to N2.18 trillion in loans to customers in H1 2020 from N2.06trillion reported in full year ended December 31, 2019, whilst customer deposits increased by 25.2 per cent to N4.8 trillion, compared to N3.8 trillion recorded in the corresponding period of 2019.

This reflects increased customer confidence, enhanced customer experience, early wins from the ongoing business transformation programme and the deepening of its retail banking franchise.

From the profit & loss figures, the group results showed profit after tax of N44.43billion, 21.7 per cent below N56.74billion reported in H1 2019.

The results to the Nigerian Stock Exchange (NSE) on Tuesday disclosed 18.7 per cent decline in profit before tax to N57.13billion in H1 2020 as against N70.27billion reported in H1 2019.

According to the bank, the directors in pursuant to the powers vested in it by the provisions of Section 379 of the Companies and Allied Matters Act (CAMA) of Nigeria, proposed interim dividend of N0.17 per share (30 June 2019: N0.20 per share) from the retained earnings account as at 30 June 2020.

On the cost side, Operating Expenses grew by 20.56 per cent to N132 billion, as against N109.6 billion in H1 2019, driven by 22.6 per cent gain in “Other operating expenses” that closed the period under review at N77.97billion from N63.6billion reported in H1 2019.

Speaking about the bank’s first quarter results, the Group Managing Director/CEO of the UBA Plc, Mr. Kennedy Uzoka had expressed satisfaction with the Bank’s performance, which according to him remains encouraging despite the challenging business environment.

Speaking on customers’ growing concerns on banking services during the lockdown due to the coronavirus pandemic, Uzoka explained that the bank has put in place various strategic channels to ensure that customers transactions are effectively carried out with ease.

He said, “In response to the spread of COVID-19 several national governments have announced a partial or total lock down in a number of our markets, post Q1 2020. Fortunately, we have built robust electronic channel platforms to enable us effectively serve our customers from the convenience of their homes. Despite the lock down, our banking channels have remained open to our customers 24/7, even as we continue to align and adapt our operating model to ensure we service our customers excellently and safely.”

He noted that as economies and businesses adjust to the headwinds occasioned by the novel Covid-19 pandemic, the bank has been identifying emerging strategic opportunities arising from this and positioning to take full advantage of this to delight customers and create value for stakeholders. “We also remain committed to our prudent risk management practices, as profitable growth and good asset quality remain our priority in 2020,” he stated.

UBA is a leading Pan-African financial institution, offering banking services to more than 18 million customers, across 1,000 business offices and customer touch points in 20 African countries. With presence in New York, London and Paris, UBA is connecting people and businesses across Africa through retail, commercial and corporate banking, innovative cross-border payments and remittances, trade finance and ancillary banking services.

 

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