United Bank for Africa (UBA) Plc shareholders have got some good news.
The board of directors has recommended payment of N7.26 billion as interim dividends for the first half of this year as the bank sustained stable top-line and bottom-line.
Shareholders will receive a dividend per share of 20 kobo as interim dividends based on the first half results. The audited report for the period ended June 30, 2016 showed that profit before tax improved from N39.05 billion in first half 2015 to N40.27 billion in first half 2016. Profit after tax inched up from N32 billion to N32.62 billion. Gross earnings stood at N165.58 billion in first half 2016 as against N165.74 billion in first half 2015. Earning per share was flat at 94 kobo.
The bank also recorded a significant growth in total assets, rising 20 per cent to N3.3 trillion, crossing the three trillion mark. The bank’s net loan position rose 29 per cent to N1.29 trillion, partially boosted by the depreciation in the value of the Naira. UBA also recorded a significant 16 per cent growth in deposits to N2.41 trillion already surpassing the 15 per cent target growth in deposits set at the beginning of the year. Another positive for UBA was a drop in cost to income ratio to 63 per cent as at half year compared to 64 per cent in same period of 2015. It is noteworthy that the bank maintained its strong asset quality, with non-performing loans ratio at 2.4 per cent; well below the CBN’s limit of 5.0 per cent for the banking industry.
Group managing director, United Bank for Africa (UBA) Plc, Kennedy Uzoka, said the results have been achieved amidst waning economic fundamentals.
“We delivered profit in excess of N40 billion and grew balance sheet by 20 per cent, with our on-balance sheet total assets crossing the N3 trillion mark. Even as Naira depreciation and inflationary pressure increased the cost of doing business in Nigeria, we leveraged our economics of scale, enhanced operational efficiency and Group shared service structure to moderate our cost-to-income ratio by 90bps,” Uzoka said.
He assured that UBA will sustain its culture of keeping a healthy balance sheet, with strong liquidity and capitalization, as reflected in the liquidity and BASEL II capital adequacy ratios of 45 per cent and 18 per cent respectively.
According to him, notwithstanding the current slowdown in economic activities, there are bright spots ahead, especially as group sees strong prospect to grow market share across all chosen economies, through its enhanced dedication to customer service.