UBA grows loan book by 26.7%, as comprehensive income hit N48.74 billion


released its nine months financial results yesterday, showing a significant
26.7% growth in loan portfolio, as the bank positions to take advantage of
emerging opportunities in Nigeria’s fast growing economy.


The nine
months results put the bank’s new loan portfolio position at N870.4 billion as
at September 2013, representing a 26.7% increase on N687.4 billion on the
bank’s loan portfolio for full year of 2012.
the significant growth in the Group’s loan portfolio, Phillips Oduoza, Group
Managing Director, said the growth was “In line with our guidance for loan
growth.  We increased our exposure to the power, upstream oil and gas and
telecoms sectors of the economy”.
UBA played
actively in the financing of big ticket deals, especially in the power sector
recently, with potential long term impact on the bank’s future
profitability.   Some of the major deals UBA actively participated in
include taking up $120m (N19.44bn) of the financing in respect of Transcorp
Ughelli Power Plant.
The bank
also acted as Mandated Lead Arranger, underwriting the entire facility of $122m
(N20bn) for Kann Utilities’ acquisition of the Abuja Electricity Distribution
Company, financing the payment of 75% acquisition of 60% equity stake in Ikeja
Electricity Distribution Company while the bank also threw its financial weight
behind Aura Energy for the Acquisition of Jos Electricity Distribution Company,
acting as the lead arranger for N9.6 billion loan to finance the payment of 75%
of Aura’s 60% equity stake in Jos Electricity Distribution Company.
firmly believe that the effect of the asset creation decisions we have taken
this quarter will have a sustained impact on our revenue growth”
Oduoza explained in a statement from the bank.
The impact
on revenues is already being seen as  the bank announced gross earnings of
N188 billion, representing 12.5% increase from N167.1 billion in the same
period of last year while riding on the back of the expansion in loan book,
interest income rose 18.8% to N133 billion from N112 billion.
Oduoza says
the “Results for the quarter reflect strong contributions from UBA’s Corporate
Banking as shown in the increase in interest income generated from loan growth
from Corporate Banking Division and from African Commercial Banking Groups”
customer confidence in the Group’s brand continues to soar as total deposits
rose 22.1% to N2.17 trillion.
the significant increase in deposits, Ugochukwu Nwaghodoh, Chief Finance
Officer of the UBA Group said, “The bank was able to effectively leverage its
branch network in Nigeria and across eighteen countries in Africa to generate
cheap deposit”
The bank is
already seeing some of the benefits of its positioning with a significant 28.5%
increase in total comprehensive income for the period to N48.74billion,
compared with N37.92billion in the same period of last year.
A profit of
N43.4billion was achieved for the period, representing an increase of 2.8% over
the N42.2billion recorded in the corresponding period of last year.
There was also
significant increase in other key performance indicators with total assets
rising by 13.5% to N2.58 trillion from N2.27 trillion while total equity rose
17.2% to N225.6 billion from N192.5billion.
“Our bank
remains resilient and our focus is on delivering a set of full year results
that will be able to adequately reward our shareholders. We are already reaping
the benefits of operating an African strategy that is anchored on our in-depth
knowledge of every market we operate in”. Oduoza said.


Oduoza also
assured that UBA remains focused and committed to achieving set targets for
2013 “especially, our long term aspirations of being the leading financial
services institution in Africa”, explaining that “Project Alpha”, which details
UBA’s strategic intent to take advantage of Africa’s fast growing economy to
boost the bank’s growth, “ is beginning to bear the expected results as we are
now reaping the benefits of delivering an improved customer experience and
improved electronic banking platform to our various customer segments”.


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