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UBA records 94.12% drop in profit


United Bank for Africa Plc, on Wednesday released its audited result for the 15 months ended December 31, 2009, which showed an after tax profit of N2.37bn, down from the N40.82bn recorded in 2008, indicating a decrease of 94.18 per cent.

The result was recorded on a gross earnings which rose by 45.56 per cent, from N169.5bn in 2008, to N246.7bn in the period under review.

Net interest income rose by 57 per cent, to N118.2bn, while fees and commissions rose by 18 per cent, to N50.07bn and operating income increased by 46 per cent to N187.7bn, while capital adequacy ratio stood at 16.3 per cent. Profit before tax and exceptional items also stood at N13.66bn.

A statement from the bank on Wednesday, said, exceptional Items include net charge of N38bn for diminution in assets value following stress tests by the Central Bank of Nigeria.

The directors have recommended a dividend of 10kobo per share and a bonus share issue one new share for every five already held.The date of closure of register is April 26 to 30 2010, while payment date is May 13, 2010.

Commenting on the result, the bank‘s Group Chief Executive Officer, Mr. Tony Elumelu, stated that the results reflected the bank‘s solid foundations, strong capital base (risk weighted capital adequacy ratio of 16.3 per cent) and focus on risk management and corporate governance.

According to the statement, “The group‘s continental expansion play continues to be a significant differentiator and source of future growth. UBA commenced operations in eight new African countries during the year, increasing the total Africa presence to 16 countries, as it seeks to diversify its earnings stream and open up considerable prospects for the distribution of its products suit.

“The disciplined approach to growth is already providing the group with material diversification as Revenues from African operations grew by 330 per cent during the period and now represent 7.2 per cent of the group‘s gross earnings. The group expects stronger growth and more material contribution from its ex-Nigeria operations in 2010.”


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