Thursday, August 30, 2018 /11:09 AM/FBNQuest Research
Event: United Bank for Africa (UBA) reports Q2 2018 results
Implications: When annualised, UBA’s H1 2018 PBT tracks ahead of consensus PBT forecast of N109.7bn. However, H1 PAT of N30.7bn trails consensus forecast of N85.2bn. As such, we expect a subdued reaction from the market. The bank’s proposed dividend per share of N0.20 translates to a yield of 2.5% (our forecast was N0.20).
Positives: UBA’s Q2 2018 PBT beat our forecast by 23% y/y. The beat was driven by positive surprises in funding income, non-interest income and loan loss provisions.
Negatives: The bank reported a post-tax loss of –N2.3bn in Q2 2018 driven by a negative result of –N24.6bn in other comprehensive income (OCI). The OCI losses were driven by fx related losses arising from the translation impact of the bank’s foreign subsidiaries.
We rate UBA Outperform. Our estimates are under review.
UBA Q2 2018 results: actual vs. FBNQuest Capital Research estimates (N millions)
Source: NSE; FBNQuest Capital Estimates
6. UBA Emerges best institution in Digital Banking across Africa