UBA’s profit up 44% with earnings of N247.2 billion

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United Bank for Africa (UBA) Plc, Friday, 16 October, released
its 9 months unaudited financial results for 2015 showing a strong 44%
rise in profit after tax to N48.6 billion and a 17% rise in gross earnings to
N247.2 billion. 


The third quarter
results also show Net Operating Income (NOI) recorded a strong 21% growth to
N167.4 billion. The cost to income ratio remained within management’s guidance
of 65%, compared to 68.7% in the corresponding period of 2014, as UBA continued
to focus on improving operational efficiency to deliver superior return to
its shareholders.

 In other
indices, UBA closed the third quarter with total assets of N2.87 trillion, loan
book of N1.01 trillion and a deposit base of N2.18 trillion. 

“We have continued
to sustain our financial performance in 2015, leveraging our unique pan-African
platform and the strength of our committed work force in gaining competitive
edge in the market place” said Phillips Oduoza, the Group Managing
Director/CEO, UBA Plc.

 He also
attributed the impressive performance of the Bank to enhanced balance sheet
efficiency and improving extraction of value from the Bank’s channels. “We have
also maintained our discipline on how, where and with whom we do business and I
am happy with the results, as reflected in our earnings and asset quality” said
Oduoza.

In the period under
review, UBA maintained a Non-Performing Loan ratio of 2.1% and 0.6% cost of
risk.  These ratios are among the lowest in the banking industry.

He noted despite
the difficult operating environment, UBA continued to provide support to
critical sectors of the Nigerian and African economy  disclosing
 that UBA recently led the consortium of local banks that facilitated a
USD1.2 billion syndicated facility for the Nigerian National Petroleum
Corporation (NNPC). 

 Also speaking
on the results, the Group CFO, Ugo Nwaghodoh noted that the Bank’s
entrepreneurial persistence continues to yield results as the Group
increasingly extracts synergy opportunities across its African network.

“Our business in
Africa, excluding Nigeria, contributed a quarter of our profit after tax in the
period; a resounding benefit of our geographic diversification” said Nwaghodoh.

 He assured
that the Bank is encouraged by the improving performance metrics, assuring “we
will not relent on our commitment to achieving desired scale, size and
profitability in all our chosen markets.”

He explained that
the Group’s balance sheet remains strong, with a 20% capital adequacy ratio and
49% liquidity ratio, noting that UBA will continue to balance the quest
for earnings and growth, with the best sustainability principles.

The UBA Group is a leading financial institution in Africa,
operating in 19 African countries, as well as New York, London and Paris. The
Group provides a suite of banking services to over 8 million retail and
corporate customers the continent and the rest of the world.

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