As UBA African subsidiaries’ contribution soars
By Peter Egwuatu
ANALYSTS have rated the United Bank of Nigeria, UBA Plc 2017 financial performance as fair following improvement in key line items as gross earnings and Profit After Tax, PAT showed relative improvement, just as the bank’s African subsidiaries’ contribution improved significantly.
UBA’s audited results for the financial year ended December 31, 2017, showed that gross earnings grew substantially to N462 billion, up by 20 percent from N314 billion recorded in the corresponding period of 2016.
Subject to the approvals of the shareholders, the Board of UBA proposed a final dividend of 65 kobo per every share of 50 kobo each. This final dividend proposal is in addition to the 20 kobo per share interim dividend paid after the audit of the 2017 half year financial statements, thus putting the total dividend for 2017 financial year at 85 kobo per share.
UBA’s audited results for the financial year ended December 31, 2017, showed significant growth in the contribution and market share from its pan-African subsidiaries, among other positive trends in the financial performance. The pan-African financial institution’s audited results showed that gross earnings grew substantially to N462 billion, up by 20 percent from N314 billion recorded in the corresponding period of 2017.
According to the report released to the Nigerian Stock Exchange on Friday, the Group delivered a 16% year-on-year growth in profit before tax at N105 billion, compared to N90.6 billion in the 2016 financial year. The Profit After Tax rose 8.8% to N78.6 billion. The Bank’s subsidiaries outside Nigeria contributed a third of the Group’s top-line and 45% of the profit for the year, a remarkable improvement from 31 percent contribution made by the ex-Nigeria offices in 2016. This, according to market analysts affirms the success of the Bank’s expansion strategy, with target of 50 percent contributions by 2020.
The audited results also showed that the Bank’s Total Assets peaked at N4.07 trillion, translating into 16.1 percent year-on-year growth from the figure of N3.50 trillion recorded as at 2016 financial year. In the 2017 financial year, the Bank’s Net loans achieved a prudent 9.7 percent growth at N1.65 trillion, while the customer deposits grew to N2.73 trillion, representing 10 percent YoY growth on N2.49 trillion recorded in 2016 financial year.
Commenting on the result, Kennedy Uzoka, the Group Managing Director, stated: “The results, underlines the success of our strategy of expanding across Africa, diversifying revenues and capturing the broader business opportunities inherent in Africa’s growth. The results reinforce the sustainability of our business model and the capacity to deliver superior long-term return to shareholders, as the economic and business environment improve.”
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