UBA Grows Profit Before Tax by 7 percent In Nine Months
United Bank for Africa Plc has announced its nine months results ended September 30, 2016. The pan-African banking group, reported a profit before tax (PBT) of N61.55 billion, showing an increase of 7.3 per cent above the N57.366 billion posted in the corresponding period of 2015.
The results also showed significant efficiency gains with appreciable growth in operating income by 11 per cent to N183 billion, from N165 billion, while profit after tax rose by 7.6 per cent to N52.26 billion up from N48.557 billion in 2015.
Though partly driven by the depreciation in the value of the naira, UBA also recorded a significant 21 per cent growth in deposits to N2.496 trillion and a similar 26 per cent growth in total assets to N3.478 trillion. 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
Commenting on the results, the Group Managing Director/CEO of UBA, Mr. Kennedy Uzoka, said: “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.”
Also speaking on the results, Group Chief Financial Officer, 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.”
Nwaghodoh assured stakeholders 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.