UBA Posts N61.6billion Pre-tax Profit Growth in Q3

United Bank for Africa, UBA Plc grew profit before tax to N61.56 billion, sustaining growth in the top-line and profit in the third quarter of 2016.

The lender, on Tuesday, October 11 released its nine-month earnings report at the Nigerian Stock Exchange, NSE, showing growths in all key performance indicators.

Key extracts of the nine-month report for the period ended September 30, 2016 showed that gross earnings rose to N265.53 billion in third quarter 2016 as against N245.49 billion recorded in comparable period of 2015.

Profit before tax jumped from N57.37 billion in 2015 to N61.56 billion by September 2016. After taxes, net profit rose to N52.27 billion as against N48.56 billion recorded in comparable period of 2015. Earnings per share improved from N1.43 to N1.50.

Though partly driven by the depreciation in the value of the naira, UBA also recorded a significant 21 per cent year-to-date growth in deposits and a similar 26 per cent growth in total assets.

The bank also ensured that cost-to-income ratio remained flat year-on-year at 65 per cent despite external cost pressures which masked the positive results of its cost efficiency initiatives. UBA’s share price rose by 1.95 per cent to N4.18 at the bourse yesterday.

Group managing director, United Bank for Africa (UBA) Plc, Mr. Kennedy Uzoka, said the bank was increasingly leveraging on its unique pan-African platform to drive new customer acquisition and grow market share across its African subsidiaries.

“I am pleased with our performance in the first nine months of the year. Notwithstanding the negative economic growth in Nigeria, we maintained growth in earnings and sustained our asset quality,” Uzoka.

He noted that the bank’s level of impairment in its overall loan book was moderate as its non-performing loan ratio of 2.5 per cent and 0.9 per cent cost of risk remain one of the best in the industry.