UBA posts 12.6% profit growth in the first half of 2022

By Temitope Adebayo

The African world bank, United Bank for Africa (UBA) Plc, announced its audited financial results for the six months ended June 30, 2022, recording a 12.6% appreciation in profit before tax (PBT) to 85.7 billion. naira, against 76 naira. 2 billion recorded in the same period of 2021.

The financial institution, which recorded double-digit growth in key revenue lines as well as significant progress in the contribution of its subsidiaries, declared an interim dividend of N0.20 to its shareholders.

Despite numerous commercial, economic and geopolitical environmental challenges that characterized the first six months of the year, the Tier 1 lender delivered impressive numbers, with gross revenue reaching N372.4 billion, solid growth of 17 .8% against the 316 billion naira displayed. the same period of the previous year.

À la fin des deux premiers trimestres de l’année, la Banque a également enregistré une croissance du bénéfice d’exploitation de 20,1[%à256milliardsdenairasaucoursdelapériodetandisquelebénéficeaprèsimpôt(PAT)del’entrepriseaclôturélepremiersemestreenforceà703milliardsdenairasenhaussede161%parrapportaux606milliardsdenairasàlamêmepériodeen2021[percenttoN256billionintheperiodwhilethefirm’sProfitAfterTax(PAT)closedthefirsthalfstrongeratN703billionupby161percentcomparedtotheN606billionsameperiodin2021[%à256milliardsdenairasaucoursdelapériodetandisquelebénéficeaprèsimpôt(PAT)del’entrepriseaclôturélepremiersemestreenforceà703milliardsdenairasenhaussede161%parrapportaux606milliardsdenairasàlamêmepériodeen2021[percenttoN256billionintheperiodwhilethefirm’sProfitAfterTax(PAT)closedthefirsthalfstrongeratN703billionupby161percentcomparedtotheN606billionsameperiodin2021

Another breakdown of the Bank’s half-year results, which was filed with the Nigerian Exchange Group (NGX), in the early hours of Thursday, September 8, showed that total assets continued on an upward trajectory, increasing by 5.4%. to reach about 9 trillion naira. .

UBA delivered on its core mandate of lending to creditworthy customers, with loans and advances increasing 4% to N3 trillion; while deposits increased by 7.9% to reach N7.6 trillion at the end of the period.

Equity, however, decreased slightly by 2% to 788.5 billion naira, mainly due to lower foreign operations translation reserve as well as fair value losses incurred in due to the valuation of investment securities caused by the increase in the interest rate regime across the country. world.

With strong double-digit growth in PAT versus the marginal decline in equity, the Group’s return on equity (RoE) ended the period strong at 17.7%, while return on assets (RoA) stood at 1.6%. , up 9 basis points.

Reaffirming its commitment to shareholders and the investing public, UBA Plc’s Board of Directors has declared an interim dividend of 20 kobo per share for each N0.50 ordinary share held by its shareholders.

UBA Group Managing Director/Chief Executive, Oliver Alawuba, commenting on the result, said the outstanding performance was in line with management’s expectations, adding that the Bank’s continued focus on its Customer 1st philosophy to pursue the mission of providing greater value to our stakeholders had increased low-cost customer deposits and driven the growth of its payment and transaction banking.

“Fiscal 2022 showed early signs of recovery for economies around the world, despite continued COVID-induced supply chain disruptions. However, geopolitical challenges, including the conflict between Russia and Ukraine , led to an escalation in global commodity prices, particularly grains and crude oil, which weighed on several economies.Despite these developments, our half-year figures came out stronger than the previous year, with figures business and results reaching new records,” said Alawuba.

According to him, the group’s profitability increased by 12.6% to N85.7 billion, with double-digit growth recorded in major revenue lines. The Bank also delivered a decent 20% growth in net interest income as it continues to moderate the cost of funds while improving return on assets, contributing to the strong 20% ​​growth in operating income.

“Our investments in advanced technologies continued to deliver the expected results, as evidenced by the huge increase in our digital banking revenue, which grew 22.7% year-over-year to 36.3 billion naira. These gains allowed us to optimize net profit in an environment of accelerating inflationary pressure, currency devaluation and rising regulatory costs,” he said.

Alawuba also noted that he was pleased with the progress the Bank has made in growing its market share across Africa.

“Our retail business continued to grow as we leverage our agency banking network, trusted brand, competitive product offerings and quality service delivery to deepen our retail penetration. retail,” he said.

Commenting on his recent appointment as Group Managing Director/Chief Executive, alongside five other Group Executive Directors and assuring the investing public of his relentless commitment to the growth of the business, he said: “ Together, with our highly motivated staff, we are poised to usher the business into a new era of growth that will deliver superior value to all stakeholders.”