UBA releases half-year results, earnings, profit

The United Bank for Africa Plc, has announced its audited 2018 half year financial results, showing strong growth across key performance metrics as well as a significant contribution from its African subsidiaries.
Despite declining yield environment in two core markets, Nigeria and Ghana, the pan Africa financial institution delivered double digit growth in gross earnings, as it recorded a 16 per cent year-on-year rise in top-line to N258 billion, compared to N223 billion recorded in the corresponding period of 2017.
This performance, according to analysts, underscores the capacity of the Group to deliver strong performance through economic cycles, even in a challenging business environment.
According to the report filed to the Nigerian Stock Exchange on Wednesday, UBA, reported strong growth in operating income at N168.5 billion, compared to N161.8 billion in the first half of 2017, an increase of 4.1 percent.
Notwithstanding the inflation-induced cost pressure in the period, UBA finished the first half of the year strongly, with a Profit Before Tax of N58.1 billion.
The Profit After Tax also improved to N43.8 billion, a 3.4 percent growth compared to N42.3 billion achieved in the corresponding period of 2017.
The first half of the year profit, translated to pre-tax and post-tax return on average equity of 23% and 17% respectively.
UBA’s foreign operations continue to grow in importance, contributing 40 per cent of the Group’s profit, which according to analysts attests to the benefit of UBA’s pan-African strategy and reinforces the Bank’s objective of achieving 50 per cent earnings contribution from offshore subsidiaries.
In the first six months of the year, the Bank’s Total Assets grew 4.9 per cent to N4.27 trillion and Customer Deposits rose by 6.1 per cent to N2.90 trillion, compared to N2.73 trillion as at December 2017.
This growth trajectory underlines UBA’s market share gain, as it increasingly wins customers through its re-engineered customer service and innovative digital offerings.
The Group’s Shareholders’ Funds remained strong at N496.3 billion, even as implementation of IFRS 9 impacted the total equity of the bank and its peers.
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 on the qualification date – Wednesday, September 05, 2018.
Commenting on the results, the Group Managing Director/ CEO, United Bank for Africa Plc (UBA), Kennedy Uzoka, said: “Our performance in the first half the year reflects the resilience of our business model and strategies.
Despite declining yields in two core markets, Nigeria and Ghana, we delivered double digit growth in gross earnings.
Our performance demonstrates the success of our digital banking initiatives and broader Customer-First strategies”