By CHIOMA OBINAGWAM
UNITED Bank for Africa Plc (UBA), has announced its Audited 2016 Half Year Financial Results for the period ended June 30, 2016 showing a significant growth in Total Assets, rising 20 per cent to N3.3 trillion, crossing the three trillion mark.
The bank which recorded gross earnings of N166 billion, net operating income of N109 billion and profit before tax of N40 billion also recommended the payment of 20 kobo interim dividend on every ordinary share of 50 kobo.
Speaking on the results, Kennedy Uzoka, the Group Managing Director/ Chief Executive Officer (GMD/CEO), UBA Plc 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 90 basis points (bps).”
UBA achieved several strong positives in its performance for the half year, evident in the bank’s net loan position, which rose 29 per cent to N1.29 trillion partially boosted by the depreciation in the value of the Naira.
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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.
It is noteworthy that the bank maintained its strong asset quality, with Non-performing loans (NPL) ratio at 2.4 per cent; well below the CBN set limit of 5 per cent for the banking industry.
Uzoka 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.”
“Notwithstanding the current slowdown in economic activities, we see bright spots ahead, especially as we see strong prospect to grow market share across all chosen economies, through our enhanced dedication to customer service,” he continued.
Explaining the major drivers behind UBA’s strong performance, the Group Chief Finance Officer (CFO), Ugo Nwaghodoh said: “This impressive performance was driven by increased transaction volume, balance sheet growth and efficiency as well as a disciplined management of operating cost. We achieved a 60bps moderation in funding cost, despite the tighter interest rate environment, as we continue to improve our deposit mix, towards low cost savings and current accounts.”
Nwaghodoh said that UBA’s performance in the period endorses the bank’s resilient ability to profitably and grow its business from sustainable core banking offerings.
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