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United Bank for Africa Plc; one of the largest financial services institutions in
Africa has more than doubled its profits in the first quarter of the current financial
year. Results for the period ended March 31, 2011, released on Thursday April
14, 2011 show that net profits were up by 150% from N1.6bn to N3.9bn. On the
balance sheet side, loans stood at N630bn, deposits rose to N1.31trn, total
assets rose to N1.7trillion during the first quarter of 2011.
Speaking on the bank’s performance, Executive Director, Finance, UBA, Mr.
Emmanuel Nnorom said “we have already started making great strides in driving
our business in this financial year. We will focus on reinvigorating our business
and leveraging our wide distribution network and Pan-African and international
presence to optimize the Bank’s productivity while flattening our cost base and
reducing asset deterioration to the barest minimum.
We will aggressively drive new businesses and consolidate on our existing
businesses for maximum profitability through rigorous performance management
Some of the key initiatives being implemented according to him, include
aggressive loan growth occasioned by the recent recently alignment of its
operating structure to help us tap into ensuing business opportunities and grow
our risk assets portfolio; Consolidation of its African operations as expansion to
the African market has started yielding positive returns; Improving its deposit mix
by driving for low- cost deposit generation and customer service delivery.
The first quarter results came on the heels of the bank’s full year result for 2010
which show gross earnings of N185.2bn. Profits before tax and exceptional
items in the period grew by 45% from N10.9bn annualized figure in 2009 to N15.
9bn in 2010.
While the 2010 full year results were moderated by provisions, exceptional write-
offs and expansion cost into African countries, the first quarter 2011 results show
strong improvements as the 2nd tier strategic intent of expanding into Africa and
diversification of the bank’s earnings base begins to pay off.
The bank has recommended a twin dividend declaration of stock and cash
dividend. A robust stock dividend of 25% of holding (1 for 4) was proposed by the
bank for shareholders’ ratification at the upcoming Annual General Meeting
Loans and advances stood at N629bn, total assets grew marginally to N1.62
trillion, while balance sheet size improved to N2.27 trillion.
The group recorded improvements in key lines of the income and balance sheet
statements. Fee based incomes (non interest incomes) rose on the back of
improved transaction incomes and gains of the bank’s strategic positioning within
the African region, while balance sheet growth culminated from enhanced funding
base. It is instructive to note that UBA has launched three key products;
Africash, Afritrade and AfriCard, designed to enable it tap into trade and Diaspora
flows in Africa .
Commenting on the results, the bank’s Executive Director Finance, Mr.
Emmanuel Nnorom said “We posted N15.9 billion profits in 2010 as against an
annualized corresponding figure of N10.9 billion in 2009. But for the N12.7 billion
exceptional items taken during the period, net profits would have been stronger”
The N12.7 billion resulted from the transfer to AMCON and the special assets of
N7 billion arising from legacy Continental Trust Bank (CTB) that was being written
off since the last three financial periods. “It’s interesting to note that this is is the
final of the CTB write-offs that will not reoccur again” he further explained.
United Bank for Africa Plc is one of Africa’s leading financial services institutions
offering banking services to more than 7.2 million customer accounts across 726
branches , 1,230 ATMs and 3, 900 PoS units deployed across 18 African
countries. With Presence in New York, London and Paris, UBA is connecting
people and businesses across Africa through retail and corporate banking,
innovative cross-border payments, trade finance and investment banking services
African Examiner | April 15, 2011
UBA First Quarter 2011 Profits soar
*Grosses N185.2bn in year 2010
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