Tuesday, March 15, 2016 12:42PM /Cordros Capital
United Bank of Africa Plc (UBA) yesterday released results for the financial year ended 31 December 2015. UBA declared a final dividend of 40 kobo (20 kobo interim) with the closure date running from March 30, 2016 to April 5, 2016, whilst the proposed payment date is April 12, 2016.
- Gross earnings increased by 9.8% y/y, however, Q4'15 numbers were more somber, declining by 15.2% q/q, after a 62.6% q/q slump in non-interest income.
- Interest income increased by 19.0% y/y, after a flattish Q4'15 whilst interest expense was contained, increasing by 6.1% y/y (+2.9% q/q). Therefore, net interest income grew by a robust 30.0% y/y.
- Loan loss expense increased by 58.7% y/y, but surprisingly fell q/q after recoveries, mainly from the bank's rest of Africa operations (60% -70%), surpassed impairments made in the fourth quarter of 2015. Operating expense climbed by 5.4% y/y.
- Overall, PBT and PAT increased by 21.8% y/y and 24.5% y/y respectively. ROAE improved to 20.0% from 19.2% in FY'14. Loans to customers and customer deposits both fell by 3.3% and 4.1% respectively.
Initial Impression of the Result - Below our expectation but above consensus forecast.
1. UBA Records Weaker than Expected Non-Interest Income in Q4 2015 Results
2. UBA Proposes 40kobo per share Dividend in 2015 Audited Result,(SP:N3.41k)
3. UBA Board Approves 2015 Audited Financial Statements; Awaits CBN Approval for Official Release
4. UBA Board Appoints Mr. Kennedy Uzoka as MD/CEO Designate
5. UBA declares N48.56 bln Profit in Q3'15 Result,(SP:N4.18k) - Proshare
6. GUARANTY UBA and ZENITH Are Top Picks in Banking Sector - Afrinvest