The United Bank for Africa Plc, one of Nigeria’s fast growing financial institutions, has reported gross earnings of N258 billion for the half year ended June 30 this year, representing 16 percent growth over its earnings in the corresponding period of 2017.
According to a statement by the bank’s management on Wednesday, its second quarter performance showed strong growth across key performance metrics as well as a significant contribution from its African subsidiaries
The bank stated: “Despite declining yield environment in two core markets, Nigeria and Ghana, the pan African financial institution delivered double-digit growth in gross earnings, as it recorded a 16 per cent year-on-year rise in top-line to N258bn, compared to N223bn recorded in the corresponding period of 2017.
“This performance, according to analysts, underscores the capacity of the group to deliver strong performance through economic cycles, even in a challenging business environment”, the bank added.
In the report of the half year operations filed at the Nigerian Stock Exchange (NSE), the lender reported strong growth in operating income at N168.5 billion, compared to N161.8 billion in the first half of 2017, representing an increase of 4.1 per cent.
It stated further that notwithstanding the inflation-induced cost pressure in the period under review, UBA posted a Profit Before Tax (PBT) of N58.1 billion while the Profit After Tax (PAT) also improved, peaking at N43.8 billion, representing a 3.4 percent growth compared to the N42.3 billion PAT recorded in the corresponding period of 2017.
According to the management, the bank’s first half of the year profit, translated to pre-tax and post-tax return on average equity of 23 per cent and 17 per cent respectively.
Commenting on the results, the bank’s Group Managing Director/CEO, Kennedy Uzoka, said that the “performance in the first half the year reflects the resilience of our business model and strategies. Despite declining yields in two core markets, Nigeria and Ghana, we delivered double digit growth in gross earnings. Our performance demonstrates the success of our digital banking initiatives and broader Customer-First strategies”
“We are integrating banking to our customers’ lifestyle, simplifying processes for routine transactions and driving financial inclusion by making banking services accessible and affordable. We are creating opportunities for wealth creation and economic progress, as we empower our customers through innovative platforms and solutions that support their personal and business growth.
“Our enhanced asset-liability management strategies improved asset yield and grew interest income by 21 per cent despite prevailing yield environment. Our re-engineered sales structure provided the impetus for renewed retail deposit growth. I am particularly pleased by the 24 per cent year-to-date growth in retail savings and current account deposits, underpining the increasing penetration of our digital offerings and the Group’s overarching goal of democratizing banking across Africa.
“We improved net interest margin to 7.4 per cent in line with our 2018 target, notwithstanding strong competition for wholesale deposits and the impact of rising global interest rates on our foreign currency funding,” .Uzoka added.
