UBA Q3 2018 Results – PAT at N61.70b As Non-interest Income Grew by 25% YoY (SP:N8.20k)


Wednesday, October 17, 2018   10.5oAM  / NSE with additional comments from FBNQuest Research


United Bank for Africa (UBA) released Q3 ‘2018 results this morning. See below the results and initial view.

 Proshare Nigeria Pvt. Ltd.

Source: NSE



FBN Quest – Initial View 

Implications: When annualised, UBA’s 9M 2018 PBT tracks behind consensus PBT forecast of N113.8bn. As such, we expect to see the market to react negatively to this set of numbers.


Positives: Non-interest income grew 25% y/y – though largely expected - mainly driven by growth in income from trade transactions and e-banking income. Further down the P&L, PAT declined by 16% y/y due to based effects (income tax rate of 14.6% vs 10.6% in Q3 2017). In terms of balance sheet trends UBA‘s, loan book and deposits grew by 3% q/q and 10% q/q respectively.


Negatives: Funding income fell by -22% y/y while loan loss provisions increased by 14% y/y. While the former surprised negatively, the latter beat our forecast; however, the negative surprise was the more impactful of the two. As such, PBT came in flay y/y and missed by 31%.


Rating: We rate UBA Outperform. Our estimates are under review.


UBA Q3 2018 results: actual vs. FBNQuest Capital Research Est (N m’s)

Proshare Nigeria Pvt. Ltd.

        Source: NSE; FBNQuest Capital Estimates 




Proshare Nigeria Pvt. Ltd.


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