The United Bank for Africa, UBA, has announced the payment of N6.84 billion to shareholders as interim dividend for the first half of this year. The bank also grew revenue by 16 percent to N258 billion from N223 billion within the six-month period.

Audited report and accounts of UBA for the half year ended June 30, 2018, released on Wednesday, August 29, at the Nigerian Stock Exchange, NSE, showed strong growth across key performance indicators with significant contribution from its African subsidiaries.

A breakdown of the dividend recommendation indicates that shareholders will receive an interim dividend per share of 20 kobo, sustaining a trend of rewarding shareholders twice in a financial year. Key extracts of the audited report and accounts showed that gross earnings rose from N223 billion in first half 2017 to N258 billion in first half 2018.

Operating income stood at N168.5 billion compared with N161.8 billion in the first half of 2017. Notwithstanding the inflation-induced cost pressure in the period, UBA finished the first half of the year with profit before tax of N58.1 billion.

After taxes, net profit rose by 3.4 percent to N43.8 billion in 2018 as against N42.3 billion recorded in comparable period of 2017. These implied pre-tax and post-tax return on average equity of 23 percent and 17 percent respectively.

Also, the bank’s total assets grew by 4.9 percent to N4.27 trillion while customer deposits rose by 6.1 percent to N2.90 trillion. This growth trajectory underlines UBA’s market share gain, as it increasingly wins customers through its re-engineered customer service and innovative digital offerings.  The group’s shareholders’ funds remained strong at N496.3 billion, even as implementation of IFRS 9 impacted the total equity of the bank and its peers.

Analysts noted that the double-digit growth in revenue despite declining yield environment in two core markets, Nigeria and Ghana, underscored the capacity of the group to deliver strong performance through economic cycles, even in a challenging business environment.

UBA’s foreign operations continue to grow in importance, contributing 40 per cent of the group’s profit, which according to analysts attests to the benefit of UBA’s pan-African strategy and reinforces the bank’s objective of achieving 50 percent earnings contribution from offshore subsidiaries.

Kennedy Uzoka, group managing director, UBA, said the first half performance reflects the resilience of the group’s business model and strategies. “Despite declining yields in two core markets, Nigeria and Ghana, we delivered double digit growth in gross earnings. Our performance demonstrates the success of our digital banking initiatives and broader customer-first strategies,” he said.

According to him, the group is integrating banking to its customers’ lifestyle, simplifying processes for routine transactions and driving financial inclusion by making banking services accessible and affordable. “We are creating opportunities for wealth creation and economic progress, as we empower our customers through innovative platforms and solutions that support their personal and business growth.

“Our commitment to delivering excellent service is paying-off, as we increasingly win a bigger share of customers’ wallet across our chosen markets,” Uzoka said.

– Aug. 31, 2018 @ 17:15 GMT |