UBA Records N57bn Operating Profits in 12 Months

United Bank for Africa (UBA) Plc has released its audited financial results for the 12 months period ended September 30, 2008 with significant growth in all key performance indices.

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Gross earnings for the period was N169.6 billion (N109.5 billion in 2007), wh-ile profit from operations before tax and exceptional items was N56.8 billion  (N31.2 billion last year), representing growth rate of 55 per cent and 82 per cent respectively over the previous year.

The balance sheet grew 39 per cent to N2.3 trillion during the year on the back of the bank’s aggressive expansion of its presence both nationally and internationally.

Most significantly for the bank, total deposits rose 47 per cent to industry highest of N1.33 trillion just as it recorded the best return on assets (ROA) and return on equity (ROE).

With an ROA and ROE of 3.4 per cent and 29.2 per cent in the last financial year, UBA ranked highest among other emerging top players in the industry in the area of asset utilisation and returns on shareholders’ investment respectively thus asserting its leadership position in the Nigerian financial sector. 

First Bank recorded 3.1 per cent, 13.4 per cent, Zenith 2.5 per cent, 13 per cent and Union Bank 2.9 per cent, 26.4 per cent respectively.

Shareholders are being rewarded as the bank is proposing a final “bumper” dividend of 75 kobo and a bonus of one share for every four shares.

The bank, in its half-year results, already paid a dividend of 25 kobo per share and a bonus of one share for every two shares. This brings total effective dividend payout in 12 months to N1.38k after factoring in the half-year interim bonus of one for two which now qualifies for an additional 75k dividend this time.

The CEO of the Group, Mr. Tony Elumelu, attributed the strong performance to the bank’s “pool of quality human capital and unique talents powering the UBA machine day and night”.

He believes that having worked tirelessly for three years post-merger consolidation in areas such as re-engineering the Group processes, strengthening risk management, corporate governance and customer service, the Group has now laid building blocks for sustainable, high growth as envisioned by the board.

The UBA Group has positioned itself in the last three years to be Nigeria’s dominant bank and a leading player in Africa continent.
With over 700 business offices and 1600 ATMs, which now includes pioneering cheque acceptance ATMs, it has the largest network in Nigeria, and is now regarded as “your neighbourhood bank”.

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Internationally, the Group has operating licences in 12 African countries and is the only sub-Saharan bank with dual presence in both USA and UK. The Group projects significant continued growth in profits in the new financial year as its subsidiaries in these countries start contributing more significantly to the bottom line.

Elumelu, who was recently named African Banker of the Year, explained that the bank during the year increased its focus on corporate governance and risk management critical to creating the internal environment for sustained growth, with the appointment of a further two independent Directors and a new Group Chief Risk Officer with extensive experience from a successful international bank.

The bank also significantly streamlined its operations during the year, appointing two Deputy Managing Directors and CEOs for its retail, investment banking and international businesses.

These changes, he said, would strengthen the bank’s foundation for the next phase of growth and global expansion, bringing even more rewards to its shareholders and investors in Nigeria and across the globe.

“In a time of global crisis, we can demonstrate proudly the strong liquidity position and balance sheet of UBA, reassuring to our clients and customers, whilst looking confidentially at the opportunities now presenting themselves,” said Elumelu.