Thursday, March 21, 2019 05:04 PM / Proshare MARKETS
United Bank for Africa Plc held its FY 2018 Investors and Analyst
Conference Call Earnings Presentation. Proshare NG participated along with
leading market analysts and professionals.
The management of the bank
in its review of the domestic operating environment stated that Nigerian macros
is gaining strength. Nigeria’s Interest rate policy remains stable, as Naira
stabilizes and inflation moderates.
United Bank for Africa Plc
recorded a gross earnings of N494.04bn in FY 2018 as against N461.56bn in FY
2017, up by +7% YoY. The increase in earnings was driven by interest income growth as a result of strong interest income on
treasuries, reflecting the low-risk appetite and treasury-led strategy adopted
during the year.
The bank’s Profit
After Tax increased by 1.4% YoY from N77.55bn in FY 2017 to N78.61bn in
Table – 2018FY Audited Results
The bank’s balance
sheet/statements of financial position reflected that it recorded a drop of
4.8% in its shareholder’s fund while its total assets, Loans and advances and
customer deposits went up 19.7%, 3.9% and 22.5% respectively.
At the close of trading today,
the share price of UBA Plc closed flat at N7.70k.
Visit UBA Plc IR Page in Proshare MARKETS
Graph– One Year Share Price Movement
In a nutshell, below are
the key takeaways from the FY 2018 earnings presentation made by the bank’s
- UBA’s lower non-interest
income was occasioned by market condition and regulatory impact on FX trading
income while the growing volume on FX trading is compensating for lower margin
on this business, thus reinforcing the bank’s positive growth expectation on
this income line in 2019.
- UBA Plc recorded an
improving asset quality with 25bps YoY moderation in NPL ratio despite the
impact of exchange rate difference between the reporting dates. The single
largest NPL (9mobile) has been resolved but still in the Stage 3 bucket due to
the need to observe the waiting period of 90days under IFRS 9 before migrating
it to Stage 2 bucket. Isolating this facility, NPL ratio would have been 5.2%.
UBA NPL ratio is at 6.5% in FY2018.
- The bank sets a 12% loan
growth and 18% deposit growth guidance for 2019FY.
- In spite of slow
recovery in economic activities in Nigeria, which is UBA’s single largest
market, the Group’s total assets grew by 19.7%. this was driven largely by a
strong deposit growth of 23%, as the drive for retail deposits continue to
yield desired results.
- The growth in the bank’s
balance sheet also partly reflects the impact of exchange rate difference
between the reporting dates (2017: N331/USD vs. 2018: N359/USD), as 37% of
loans and 27% of overall balance sheet is FCY-denominated.
United Bank for
Africa Plc FY'18 Results - EPS Flat; Company Declares N0.65 per Share Dividend
Declares N78.6bn PAT in 2018 Audited Results, Proposes N0.65k Final Dividend
UBA Q3 2018 Results
– PAT at N61.70b As Non-interest Income Grew by 25% YoY (SP:N8.20k)
UBA Plc H1 2018
Conference Call and Earnings Presentation - The Key Takeaways
UBA Extends Closure Date On Its 2018 Interim
Dividend of N0.20k – Sep 01, 2018
UBA Appoints Four
New Board Members – Sep 01, 2018
UBA Plc H1'' 18
Results - Resilient Performance; Company Declares N0.20 Dividend per Share
Aug 31, 2018
UBA Reports Q2 2018
Results – H1 PAT of N30.7bn trails Consensus Forecast of N85.2bn
N43.79bn PAT in Q2 2018 Results,(SP:N8.05k)
10. UBA Emerges best
institution in Digital Banking across Africa
11. ALERT: UBA Trades
19.07% of Total Market Volume Today
12. UBA’s Leo launched