United Bank for Africa (UBA) Plc last week reported a 10 percent growth in its earnings to N290 billion for its full year audited results, an indication that the consolidation of its African operations and enhanced productivity across the group are sustaining the bank’s growth.
The result of the pan-African bank, released at the NSE showed a Profit before Tax of N56.2 billion and a Profit after Tax of N48 billion.
Earnings received a boost from both interest and non-interest income, showing the bank’s diversified and stable income base, as interest income rose from 5,91 percent to N197 billion in December 2014 from N186 billion in December 2013, while non-interest Income rose by 18.17 percent to N93.3 billion from N79.0 billion.
The bank’s Group Financial Officer Ugo Nwaghodoh expressed optimism that the bank would continue to record a steady and sustained increase in its profitability by leveraging on low cost stable funds as well as rising opportunities in the bank’s target markets in Nigeria and across Africa.
“The performance of our African business was boosted by increased cross selling of our products and a number of other strategic initiatives. As we gain critical mass in African market, we look forward to increased earnings in line with the diversification of our business across Africa”.
The customer deposits in the bank in the period under review remained stable at N2.17 trillion in 2014. Buoyed by this stability, UBA expanded its support for business on the continent by increasing its loan book by 14 percent to N1,072 trillion in 2014.
The GMD/CEO Phillip Udouza said: “We expand our loan book without compromising our focus on assets quality.”
Notably, our non-performing loan ratio remains one of the best in class at 1.06 percent as we responsibly grew risk assets in line with our defined risk appetite and target markets”..
The bank was also able to grow shareholder’s fund significantly by 13 percent to N265 billion in 2014 from N235 billion in 2013, with a capital adequacy ratio above regulatory requirement.
UBA also announced that it would pay a proposed cash dividend of N0.10 per share in a move, the board says will effectively reflect the balance between giving short term return to investors and the commitment to create sustainable long term value to all shareholders.