UBA grows profit by 3.4%; to pay $18.9m to shareholders

Nigeria-headquartered United Bank for Africa has reported a 3.4 percent rise in profit after tax for the half-year ended June 30, 2018 to N43.8 billion from N42.3 billion in 2017. Earnings per share rose marginally to N1.23 from N1.20 in 2017. Gross earnings grew by 16 percent to N258 billion compared to N223 billion recorded in 2017.

While commenting on the result, the Group Managing Director/CEO, United Bank for Africa Plc (UBA), Kennedy Uzoka, said: “Our performance in the first half the year reflects the resilience of our 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”

“Our enhanced asset-liability management strategies improved asset yield and grew interest income by 21 percent despite prevailing yield environment. Our re-engineered sales structure provided the impetus for renewed retail deposit growth. I am particularly pleased by the 24 percent year-to-date growth in retail savings and current account deposits, underpining the increasing penetration of our digital offerings and the Group’s overarching goal of democratizing banking across Africa. We improved net interest margin to 7.4 percent in line with our 2018 target, notwithstanding strong competition for wholesale deposits and the impact of rising global interest rates on our foreign currency funding,” he concluded.

The bank announced an interim dividend of N6.84 billion ($18.9 million) to shareholders at 20 kobo per share.

To download UBA’s Financial Statements for H1 2018, click here.