Shares of Access Bank, UBA advanced by N50.7bn in 11 months
Following impressive quarter-on-quarter growth in profitability, shares of Access bank Plc and United bank Plc (UBA) appreciated by N50.7 billion in 11 months on the equities market.
These financial institutions have proven to overcome tough operating environment despite dwindling foreign exchange, rising inflation, among other headwinds facing the nation’s economy
Specifically, United Bank for Africa (UBA) shares had increased from N3.38 per share it opened the year to N4.3 per share as at November 30, 2016, translating into investors’ gain of N33.4 billion.
Share of Access Bank also moved from N4.85 to N5.45, to position investors’ gain of N17.4 billion from January to November 2016.
According to Business247 News Online investigation, UBA had reported an eight per cent year-on-year growth in profit before tax of N52.3 billion in the third quarter of 2016, and a significant growth in total assets, which rose 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.
The Group CFO, UBA, 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.”
He 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 percent BASEL II capital adequacy ratio, well ahead of regulatory requirement.
During the nine months that ended September 2016 results announcement, Access Bank’s Group Managing Director, Herbert Wigwe noted: “Access Bank’s performance in the first three quarters of this year remained strong and consistent, reflecting a stable business with the capacity to deliver sustainable returns, particularly during a period underlined by significant macro headwinds.”
He said the bank remained committed to cost containment plan, striving to balance operational efficiency with earnings growth in a constrained environment.
According to him, “The Bank will remain resilient in the achievement of its strategic imperatives; maximizing our strong market position and solid capital base, while leveraging digital innovation to improve service touch points as we sharpen our retail play with emphasis on cheaper funding sources,” Wigwe noted.
Access Bank Plc had announced a Profit After Tax (PAT) of N57.1 billion that grew by 19 per cent from N48.1 billion in 2015.
