Leveraging its expansive footprint, pan-African banking group, United Bank for
Africa Plc (“UBA” or “the Bank”), announced its unaudited Third Quarter
Financial Results, showing a 7% year-on-year growth in profit before
tax to N62 billion despite the challenging macro-economic environment. This
represents an impressive 18.2% annualized return on average equity.
The Bank recorded an appreciable growth in both funding and fee income lines.
"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.
Increasingly, we are leveraging our unique pan-African
platform to drive new customer acquisition and grow market share across our
African subsidiaries” said Kennedy Uzoka, Group Managing Director and CEO of
UBA Plc.
Furthermore, the Bank’s level of impairment in its overall
loan book wasn moderate. The Non-Performing Loan (NPL) ratio of 2.5% and 0.9%
cost of risk remain one of the best in the industry.
UBA Plc’s third quarter results also show significant efficiency gains with
appreciable growth in operating income by 11% to N183 billion while profit
after tax rose by 8% to N52 billion within the period. Though partly driven by
the depreciation in the value of the naira, UBA also recorded a significant 21%
year-to-date growth in deposits and a similar 26% growth in total assets. The
bank also ensured that cost-to-income ratio remained flat year-on-year at 65%
despite external cost pressures which masked the positive results of its cost
efficiency initiatives.
Also speaking on the results, Group CFO, Ugo Nwaghodoh, said, “the growth
in deposits and total assets reflects the Bank’s increased share of customers’
wallet and deepening banking penetration across all its chosen markets in
Nigeria and Africa which again accounted for a third of the Group's earnings.”
The Group GCFO
assured that UBA will continue to balance its appetite for growth and
profitability with the strategy of sustaining strong liquidity and capital
ratios.
The Bank maintained 43% liquidity ratio and 17.6% BASEL II
capital adequacy ratio, well ahead of regulatory requirement.
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