The Nigerian stock market was agog last week following the release of the six months audited results of United Bank for Africa Plc (UBA), West Africa's largest financial services group. In an unusual occurrence, stock brokers and analysts applauded with a spontaneous standing ovation as the UBA delegation, led by Mrs Aidevo Odu-Thomas, Company Secretary, announced the results for the half year ended 31st March 2008 on the floor of the Nigerian Stock Exchange (NSE).

 The half year results indicate that UBA grossed N78.1bn in earnings, representing a 67 percent increase over the N46.8bn recorded in the same period last financial year. Meanwhile profit soared by a whopping 86 percent from N11.7bn recorded last year to an impressive N21.8bn this half year.

In an unprecedented move, it is gathered that the Directors of UBA have proposed a bonus of one new share for every two held by shareholders (a 1 for 2 bonus) and an interim dividend of 25kobo per 50kobo ordinary share.

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Already regarded as one of the star performers on the NSE, the market responded positively to the news, pushing the bank's share price to N60.90 from an opening price of N58.00 (a gain of N2.90k) on account of increased demand for UBA shares.

UBA has continued to post superlative financial performance at every turn, maintaining the trend from its 2007 financial results which saw the bank emerge as not just the biggest but also the most profitable bank in Nigeria with a profit of N30bn.

Commenting on the results, Executive Director and Group Chief Finance Officer, Mr. Victor Osadolor said the performance was the outcome of an increase in return on assets and an improvement in staff productivity."Increased efficiency in the system has resulted in a remarkable improvement in staff productivity by about 142 per cent," he asserted. He was also optimistic that the trend would be sustained for the remaining period of the 2008 financial year.

Managing Director, GTI Capital Ltd, Mr. Abubakar Lawal, a stock broker and independent financial analyst, remarked that UBA continues to dispel the myth that big cannot be efficient by churning out this impressive half year performance. Lawal portends an increased activity on the bank shares in the weeks and months to come, speculating that more people will be bound to mobilise resources to increase their stakes, to enable them benefit from the bank's growing fortunes.

UBA's half year results come on the heels of the announcement of a repositioning exercise designed to prosecute the next phase of the bank's strategic growth and global expansion. In the announcement, UBA unveiled a new operating structure accompanied by the appointment of two Deputy Managing Directors, three new Executive Directors and the realignment of the portfolios of existing senior management staff.

 The new operating structure consists of six Strategic Business Groups and three Strategic Support Groups, all reporting to the Group Managing Director/CEO. Whilst the six Strategic Business groups are market facing units with responsibility for business development and revenue generation, the Strategic Support groups are responsible for Group Shared Services that will enable the group exploit benefits of scale and inject discipline across business processes to drive the delivery of superior operational efficiency, governance standards, controls and customer service.

The six Strategic Business groups include: UBA Nigeria-South, UBA Nigeria-North, UBA Capital, UBA International, UBA Retail Financial Services and UBA Products & Segment Banking.

Nigeria, currently the Bank's largest market, is divided into Nigeria-North and Nigeria-South, each led by a Deputy Managing Director (DMD), to provide banking services to customers in the regions and deepen the bank's penetration accordingly.

UBA Capital, made up of nine market-leading subsidiary and affiliate companies, will provide investment banking, asset management, wealth management and merchant banking services, with a scope of operations that covers Nigeria, the African continent and global financial centres where UBA Plc has presence.

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UBA International is now the arrowhead for the Bank's global expansion plans, with responsibility for growing the bank's business beyond Nigeria into the African continent and globally.

UBA Retail Financial Services is a new service platform established to provide a wide range of financial services, targeting the non-bank and under-banked populations across Africa.

UBA Products & Segment Banking directorate has the responsibility of actively developing market opportunities by designing and offering products, managing segments and delivery channels, to serve the current and future needs of the Group's customers.

These realignments, the Bank says, follow a 3-year strategic revalidation process carried out with the engagement of McKinsey, the global management consulting firm, to ensure that UBA optimises the potential that exists in the bank, stays close to its customers wherever they may be, and is adequately positioned to achieve its long term aspiration of being the leading financial services group in Africa. With the recent impressive audited financial results, the Bank is certainly consolidating its leadership and charting the course towards its vision.