United Bank for Africa Plc, UBA, has proposed an interim dividend payment of N0.20 following its impressive audited 2016 half year financial results for the period ended 30 June.
The result showed that the lender recorded gross earnings of N166 billion, net operating income of N109 billion and profit before tax of N40 billion.
UBA also posted a significant growth in total assets, rising 20% to N3.3 trillion, crossing the three trillion mark. Following the healthy performance, the bank’s Board recommended the payment of N0.20 interim dividend on every ordinary share of N0.50 each.
Speaking on the results, Kennedy Uzoka, the GMD/CEO, UBA Plc said; the results have been achieved amidst waning economic fundamentals.
“We delivered profit in excess of N40 billion and grew balance sheet by 20%, with our on-balance sheet total assets crossing the N3 trillion mark. Even as Naira depreciation and inflationary pressure increased the cost of doing business in Nigeria, we leveraged our economics of scale, enhanced operational efficiency and Group shared service structure to moderate our cost-to-income ratio by 90bps.”
UBA achieved several strong positives in its performance for the half year. The bank’s net loan position rose 29% to N1.29 trillion partially boosted by the depreciation in the value of the Naira.
UBA also recorded a significant 16% growth in deposits to N2.41 trillion already surpassing the 15% target growth in deposits set at the beginning of the year.
Another positive for UBA was a drop in cost to income ratio to 63% as at half year compared to 64% in same period of 2015. It is noteworthy that the bank maintained its strong asset quality, with non-performing loans ratio at 2.4%; well below the CBN set limit of 5% for the banking industry.
“UBA will sustain its culture of keeping a healthy balance sheet, with strong liquidity and capitalisation, as reflected in the liquidity and BASEL II capital adequacy ratios of 45% and 18% respectively.”
“Notwithstanding the current slowdown in economic activities, we see bright spots ahead, especially as we see strong prospect to grow market share across all chosen economies, through our enhanced dedication to customer service.”
The Group CFO, Ugo Nwaghodoh said the impressive performance was driven by increased transaction volume, balance sheet growth and efficiency as well as a disciplined management of operating cost.
