Friday, October 15, 2015 09:53AM / Cordros Capital Research
United Bank for Africa Plc (UBA) released its nine months results for the period ended 30th September 2015.
For the nine months period, gross earnings grew by 17.3% y/y slightly below our expectations (+25.3%) on the back strong y/y performances in both interest income (17.2%) and non-interest income (15.6%) respectively.
Operating expenses climbed by 11.3% y/y while impairment charges surged by 130.0% y/y. Nonetheless, PAT grew by 44.4% y/y to surpass our forecast of a 34.7% y/y growth.
Loans to customers for the nine month period declined by 5.1% versus the 8.5% growth recorded in H1'15 (a 12.7% q/q decline).
Customer deposits increased marginally by 0.3% but was also down compared to the 2.7% growth recorded in H1'15 (a 2.3% q/q decline).
The Company's earnings performance in Q3-15, compared to same period last year, was also stellar. Gross earnings grew by 10.6% y/y, and PAT surged 53.4% y/y despite a 535.9% y/y rise in impairment charges.
On a q/q basis, gross earnings fell by 4.3% - driven by weaker non-interest income which fell 22.4% - while PAT rose by a modest 10.1% following a 63.6% rise in impairment charge.