Lagos; 14/04/2011: United Bank for Africa Plc; one of the leading financial services institutions in Africa has released its audited results for the year ended December 31, 2010 as well as results for the first quarter ended March 31, 2011. Both results, presented to the Nigerian Stock Exchange on Thursday April 14, 2011 are commendable.
The full year results show gross earnings of N185.2bn in 2010. Profits before tax and exceptional items grew by 45% from N10.9bn annualized figure in 2009 to N15.9bn in 2010.
The 2010 full year results were moderated by provisions, exceptional write-offs and expansion cost into other African countries, but the first quarter results show strong improvements as the 2nd tier strategic intent of expanding into Africa and diversify its earnings base, begin to pay off.
The bank has recommended a twin dividend declaration of stock and cash dividend. A robust stock dividendof 25% of holding (1 for 4) was proposed by the bank for shareholders’ ratification at the upcoming Annual General Meeting (AGM).
Loans and advances stood at N629, total assets grew marginally to N1.62 trillion while balance sheet size improved to N2.27 trillion.
In the first quarter ended March 31, 2011 shows net profits of N3.9bn, up by 150% from N1.6bn recorded in the corresponding period of 2010. This was in spite of the decline in gross earnings to N40.5bn in first quarter of 2011 (N48.3bn was recorded in first quarter of 2010). 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.
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 “profit before tax and exceptional items of N15.9 billion was reported 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 that was being written off since the last three financial periods arising from legacy Continental Trust Bank (CTB). “It’s instructive to note that the CTB write-off is final and will not reoccur again” he explained further.
For the first quarter of 2011, he said “We have already started making great strides in driving our business in the 2011. 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 systems”
Some of the key initiatives in achieving according to him include aggressive loan growth occasioned by the recentrecently 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.
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 across726 branches, 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//end.