United Bank for Africa Plc has declared a profit before tax of N105.3bn for the financial year ended December 31, 2017.
This is contained in the lender’s audited results for the period filed with the Nigerian Stock Exchange. The result showed a significant growth in the contribution and market share from the leader’s pan-African subsidiaries, among other trends.
The bank’s gross earnings grew substantially to N462bn, up by 20 per cent from N314bn recorded in the corresponding period of 2016.
The group reported a 16 per cent year-on-year growth in its PBT, compared to N90.6bn in the 2016 financial year. Its profit after tax also rose to N78.6bn, representing an 8.8 per cent year-on-year growth compared to N72.3bn in 2016.
The bank’s subsidiaries outside Nigeria contributed a third of the group’s top-line and 45 per cent of the profit for the year, which is an improvement from 31 per cent contribution made by the ex-Nigeria offices in 2016. This was said to have affirmed the success of the bank’s expansion strategy, with target of 50 per cent contributions by 2020.
The bank’s operating income grew to N326.6bn, a 20.6 per cent increase compared to N270.9bn recorded in 2016, which represents the capacity of the group to deliver strong performance through varying economic cycles and challenging business environment, the bank said in a statement.
The audited results also showed that the bank’s total assets peaked at N4.07tn, translating into 16.1 per cent year-on-year growth from N3.5tn recorded as at the 2016 financial year. In the 2017 financial year, the bank’s net loans recorded a 9.7 per cent growth at N1.65tn, while the customer deposits grew to N2.73tn, representing 10 per cent year-on-year growth on N2.49tn recorded in 2016 financial year.
The bank’s shareholders’ fund also appreciated by 18.2 per cent to N529.4bn in the 2017 financial year.
Subject to the approvals of the shareholders, the board of UBA Plc 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.
Speaking on the result, the Group Managing Director/Chief Executive Officer, UBA, Kennedy Uzoka, said, “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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