UBA to list subsidiaries on NSE, targets N15bn quarter profit

UBA to list subsidiaries on NSE, targets N15bn quarter profit

February 21, 2012

UNITED Bank for Africa (UBA) has unfolded plans to list some of its African subsidiaries, especially UBA Ghana, through a dual listing on both the Nigerian Stock Exchange (NSE) and the Ghana Stock Exchange.

The Group Managing Director of the bank, Philip Oduozua, who disclosed this during the “Facts Behind the Figures” of the bank in Lagos yesterday, said that investment in Ghana subsidiary yields about $3 billion to the group’s earnings on a monthly basis.

He gave the assurance that the banks’ investment in other African countries over the years was aimed at enhancing value to stakeholders of the bank in terms of dividend returns.

According to him, investments in Africa is currently contributing about 15 to 16 per cent growth to the group, adding that the percentage would increase to 20 percent by the end of the year.

“We have been investing in Africa, We have 19 African countries and we have covered all the critical African in sub-Saharan and this is the actual time for revenue to come in. This year, we will start seeing so many revenues coming in from Africa.

“We have been on the investment stage and we are where the business will start running,  If we want the money today, we would have invested in treasury bills but for long term profit, and for it to have investment protection, we decided to deploy part of our earnings to into other African countries.

“The Nigerian shareholders will be better of and confortable with our investment  at the end of the day. When investing , the cost would be high but when you are through with the investment, the profit start rolling in.

“The cost income ratio of UBA has dropped significantly with a substancial number and what you are going to see now is the benefit of these investments which will definitely start from this year and it has already started coming in,” he assured.

He noted that the bank is targeting a profit of N15.1 billion profit for the first quarter ending March 2012.

Odozua added that the bank is also targeting to record a profit before tax of N15.1 billion and a gross earnings of N59 billion for the first quarter.

“We are confident of the figures we are giving, we have made a lot of changes in the bank especially at the top management level in order to drive these figures we are giving to the public. For the first time, we have seven executives, while five are involved in business development, the remaining two would be on support function.”

Comparing the bank’s actual performance in the corresponding period of 2011, gross earnings growth will be 45 per cent and the gross profit growth will be in excess of 200 per cent.

He also stated that the bank had recently issued a profit warning to the market in relation to its full year 2011 financial performance adding that it will show a loss. According to the bank, profits in 2011 were moderated by provisioning and write offs.

“The write offs were necessary and leaves the bank with a healthy balance sheet. Having put the past behind us, the outlook is very positive for the bank with increasing contributions from our operations in Africa,” he said.


Source: Guardian



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