UBA reports higher profit amid COVID-19 pandemic

United Bank for Africa Plc (UBA) has reported a very buoyant trading result in 2020 despite the COVID-19 pandemic, growing profit, deposits and loans.

In a filing submitted to the Nigerian Stock Exchange on Monday, the bank announced N131.9 billion as its profit before tax.

This represents a remarkable profit growth of 27.7 percent, compared with the N111.3billion made in 2019. The bank’s Profit After Tax (PAT) also rose to N113.8 billion in contrast to the N89.1 billion made in 2019.

Total assets also grew by 37 per cent to N7.7 trillion for the year. Gross earnings grew by 10.8 per cent to N620.4 billion. It was N559.8 billion a year earlier.

The biggest growth recorded was in respect of deposits. It jumped 48.1 percent from N3.8trillion to N5.7trillion.

Loans to customers witnessed some growth as well, rising by 24 percent to N2.6trillion. However, as the bank made more money, operating Expenses grew by 10.1 percent to N249.8 billion, from N217.2 billion in 2019.

The bank disclosed that it is proposing a final dividend of 35k to shareholders. With the 17 kobo interim dividend paid last year, total dividend will be N0.52k

The Group Managing Director/CEO, Kennedy Uzoka said the bank gained more market share in most of its countries of operation.

“We ended a very challenging year on a reassuring note”, he said.

“The bank recorded double-digit growth in both our top and bottom lines, as gross earnings and after-tax profit grew by 10.8% and 27.7 per cent to N620.4 billion and N113.8 billon respectively.

‘Return on equity was 17.2 per cent, even as our cost-to-income ratio moderated to 61.3 per cent.

“Our earnings per share of N3.20 is a 26.8 per cent growth from the preceding year, as we continue to ensure maximum value creation for our highly esteemed shareholders.”

“Despite the tumultuous impact of Covid-19 pandemic globally and across our 23 countries of operation, we created N519.0 billion additional loans as we continued to support our customers and their businesses.

“Customer deposits grew 48.1 per cent to N5.7 trillion, driven primarily by additional N1.8 trillion in retail deposits.

“As a global bank, we remain well capitalized and determined to successfully drive financial inclusion on the continent through our innovative products and vast network.

“Our capital adequacy and liquidity ratios came in at 22.4 per cent and 44.3 per cent, well above the respective regulatory minimum of 15 per cent and 30 per cent,” he added.

The bank was established in 1949, as the British and French Bank Limited (BFB). On 23 February 1961, UBA was incorporated as a limited liability company under the Compliance Ordinance (Cap 37) 1922. UBA took over the assets and liabilities of BFB. In 1970 UBA listed its shares on the Nigerian Stock Exchange in an IPO, being the first Nigerian bank to make an initial public offering.