United Bank for Africa (UBA) Plc released its third quarter results for the nine months period ended September 30, 2016 on the floor of the Nigerian Stock Exchange today showing an eight per cent growth in profit for the period of N52.3 billion from N48.6 billion made in the corresponding period of 2015.
The group’s profit before tax thus rose by seven per cent to N61.6 billion from N57.4 billion recorded in the same period of 2015.
Gross earnings of the financial giant also increased by eight per cent to N265 billion, from N245.5 billion, while the group recorded a net operating income of N183 billion, 11 per cent higher than N165.7 billion posted in third 2015.
UBA Plc also recorded a significant growth in total assets, rising 26.4 per cent to N3.5 trillion, from N2.8 trillion recorded last year in sustenance of the three trillion mark crossed in the half year of 2016.
In a statement, Group Managing Director and CEO of UBA Plc, Kennedy Uzoka, “I am pleased with our performance in the first nine months of the year. Notwithstanding the negative economic growth in Nigeria, we maintained growth in earnings and sustained our asset quality. Increasingly, we are leveraging our unique pan-African platform to drive new customer acquisition and grow market share across our African subsidiaries.”
Furthermore, the Bank’s level of impairment in its overall loan book was moderate. The Non-Performing Loan (NPL) ratio of 2.5 per cent and 0.9 per cent cost of risk remain one of the best in the industry.
UBA Plc’s third quarter results also show significant efficiency gains with appreciable growth in operating income by 11 per cent to N183 billion while profit after tax rose by 8 per cent to N52 billion within the period. Though partly driven by the depreciation in the value of the naira, UBA also recorded a significant 21 per cent year-to-date growth in deposits and a similar 26 per cent growth in total assets. The bank also ensured that cost-to-income ratio remained flat year-on-year at 65 per cent despite external cost pressures which masked the positive results of its cost efficiency initiatives.
Also speaking on the results, Group CFO, Ugo Nwaghodoh, said “the growth in deposits and total assets reflects the Bank’s increased share of customers’ wallet and deepening banking penetration across all its chosen markets in Nigeria and Africa which again accounted for a third of the Group’s earnings.”
The Group GCFO assured that UBA will continue to balance its appetite for growth and profitability with the strategy of sustaining strong liquidity and capital ratios. The Bank maintained 43 per cent liquidity ratio and 17.6 per cent BASEL II capital adequacy ratio, well ahead of regulatory requirement.
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