UBA Post N61.7 Billion Profit in Q3 2018

Kennedy Uzoka, Group Managing Director/CEO, UBA Plc,

October 17, 2018

By InvestAdvocate

Lagos (INVESTADVOCATE)-Africa’s global lender, the United Bank for Africa Plc (UBA) on Tuesday reported a profit for the period of N61.69 billion in its third quarter report ended September 30, 2018 compared to N60.92 billion recorded the same period of 2017.

This profit performance puts the Bank’s annualized return on average equity at 16 percent and 20 percent at pretax and posttax profit level respectively.  

Pretax profit of the Bank also inched up one percent to N79.11 billion from N78.32 billion posted in the third quarter period of 2017.

Gross earnings of UBA grew 13 percent to N268.93 billion from N238.09 billion declared the corresponding period of 2018, the lender said in a filing with the Nigerian Stock Exchange (NSE).

“We achieved a number of strategic imperatives during the quarter and committed more investments in the future of the business – building a solid foundation for sustainable and superior return to our shareholders,” Kennedy Uzoka, group managing director/CEO, UBA Plc  said while commenting on the result.

Uzoka said that he is pleased that the Bank’s Virtual Banking Chatbot, Leo, which debuted on Facebook earlier in the year, was successfully launched on WhatsApp during the quarter. “This new channel offering, which enables our customers to fulfil their banking transactions through simple chat commands, is another premier initiative in our suite. The early pay-offs are quite compelling – recent customer acquisitions and broader transaction volume growth are exciting leading indicators that reinforce our confidence in these novel channels,” he said.  

“Our franchise is increasingly renowned for financial solution and I am happy with the consistent growth in our businesses across the continent. We have grown balance sheet by 11% year-to-date to over N4.5 trillion. Notwithstanding the statutory-induced cost growth, our earnings proved resilient, as we recorded nine-month profit before tax of N79 billion. Notwithstanding the macro-risk arising from upcoming elections in Nigeria, our single largest market, we are confident of finishing the year strong,” Uzoka added.  

On this part, Ugo Nwaghodoh, group chief financial officer said that despite the relative volatility in the third quarter of 2018, especially in the face of U.S. interest rate hikes and concerns over global trade war, which has disrupted the interest and exchange rate environment in many African countries, the bank remains on track to deliver its earnings target for the year.  

“We remain committed to our five-year plan of working down CIR to 50%, which we consider to be a normalised medium-term CIR.  Overall, we closed the third quarter with a post-tax RoAE of 16 percent and the Group remains well capitalized and liquid, as reflected in the Group’s capital adequacy of 21% and Bank’s liquidity ratio of 53 percent,” he said.

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