UBA posts 33% year-on-year earnings growth and declares interim dividend of 20,000 per share

MONROVIA – Africa’s leading financial institution, United Bank for Africa (UBA) Plc, has announced its audited half-year financial results for the six months ended June 30, 2021, showing impressive growth across all major revenue lines and performance indicators.

The pan-African financial institution recorded a 33.4% appreciation in its pre-tax profit which rose to 76.2 billion naira (185.5 million dollars) in June 2021, against 57.1 billion naira (139 $.1 million) recorded during the same period of 2020, translating into an annualized Return on Average Equity of 17.5% compared to 14.4% a year earlier.

This feat was recorded despite the challenging business and economic environment that emerged from slow business following the global lockdown occasioned by the Covid-19 pandemic.

Results filed with the Nigerian Stock Exchange showed the Group’s after-tax profit amounted to $147.5 million, a significant increase of 36.3% from the $108.2 million recorded during the half of 2020, while gross profit increased to $769.6 million from $732.0 million in June 2020; growth of 5%.

As of June 30, 2021, the Group’s total assets crossed the $19.5 billion mark when they stood at $20.2 billion, compared to $18.7 billion at the end of the year. 2020. Customer deposits also crossed the $14.6 billion mark, growing 7.4% to $14.8 billion in the reporting period from $13.8 billion in December 2020.

The Group’s equity remained strong at $1.83bn compared to $1.76bn in December 2020, reflecting its strong internal capital generation capacity. In line with the bank’s culture of paying both an interim and a final cash dividend, the UBA Plc board declared an interim dividend of 20 kobo per share for each common share of 50 kobo each, owned by its shareholders.

UBA Group Managing Director/Chief Executive, Mr. Kennedy Uzoka, was pleased with the bank’s performance in the first half of the year, adding, “It has been a strong first half for us as the Global economic recovery has exceeded expectations, creating a positive spillover effect on consumer and business confidence, savings and investment activities. We have seen this having a positive impact on our business, as we continue to leverage our key strategic levers – people, process and technology, along with our Customer 1st philosophy, to revolutionize the customer experience at UBA. .

He added that the bank’s investment in the rest of Africa (excluding Nigeria) continues to yield good results for the group. In his words; “The benefits of pan-African business diversification for the Group are once again evident, with gross profit and interest income growth of 5.1% and 8.3% respectively, despite the low yield environment. in our largest market, Nigeria. We are making remarkable progress on our strategy that progressively positions UBA as the bank of choice on the continent, with a focus on technology-driven innovation and the best customer experience.

Continuing, the GMD stressed that the bank recognizes the far-reaching effects of the pandemic on businesses around the world and remains focused on its promise to always provide its customers with the best possible banking experiences. “Our performance in the first half of 2021 reflects our progressive efforts to build on the strong momentum with which we started the year. As a goal-driven organization, we remain resolute in our pursuit of sustained growth in the customer acquisition, transaction volumes and balance sheet, as we solidify our position in the ‘global bank of Africa’ market in the years to come, improving livelihoods across the continent,” said said Uzoka explained.

UBA Group Chief Financial Officer, Ugo Nwaghodoh, for his part noted that the bank’s objective is to achieve a marked improvement in earnings quality while maintaining positive operating leverage as well as quality of earnings. prime assets. “The Group recorded a RoAE of 17.5% (vs. 14.4% in the first half of 2020) and a NIM of 5.8% (vs. 5.4% in the first half of 2020) as we played diligently in volatile return environment to achieve the best return on our interest-bearing assets. The capital position remained strong, with capital adequacy and liquidity ratios of 24.9% (22.4% at H1 2020) and 58.3% (58.2% in H1 2020) respectively. This is strong enough to support our growth ambitions,” he said.

The GCFO highlighted that while the operating environment remains largely uncertain and volatile, despite a marked improvement in Covid-19-induced macroeconomic stresses, UBA will continue to build resilience through its geographically diversified business model to support overall earnings growth. of the group.

“We remain committed to our respective targets of 18% and 15% RoAE and deposit growth for fiscal year 2021, as we continue to invest in growth opportunities in our operating geographies, while prudently managing capital and balance sheet,” Nwaghodoh said.

United Bank for Africa Plc is a leading pan-African financial institution, providing banking services to over twenty-five million customers, through more than 1,000 business offices and customer touch points, in 20 African countries. Operating in the United States of America, United Kingdom and France, UBA connects people and businesses across Africa through retail; commercial and corporate banking; innovative cross-border payments and remittances; trade finance and ancillary banking services.