UBA Plc FY 2018 Conference Call and Earnings Presentation - The Key Takeaways

Proshare

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 FY 2018.


Table – 2018FY Audited Results

Proshare Nigeria Pvt. Ltd.


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

Proshare Nigeria Pvt. Ltd.


In a nutshell, below are the key takeaways from the FY 2018 earnings presentation made by the bank’s management team;

  1. 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.
  2. 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.
  3. The bank sets a 12% loan growth and 18%  deposit growth guidance for 2019FY.
  4. 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.
  5. 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.

Proshare Nigeria Pvt. Ltd.

Related News

1.    United Bank for Africa Plc FY'18 Results - EPS Flat; Company Declares N0.65 per Share Dividend

2.    UBA Declares N78.6bn PAT in 2018 Audited Results, Proposes N0.65k Final Dividend Per Share

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

4.    UBA Plc H1 2018 Conference Call and Earnings Presentation - The Key Takeaways

5.    UBA Extends Closure Date On Its 2018 Interim Dividend of N0.20k – Sep 01, 2018

6.    UBA Appoints Four New Board Members – Sep 01, 2018

7.    UBA Plc H1'' 18 Results - Resilient Performance; Company Declares N0.20 Dividend per Share  Aug 31, 2018

8.    UBA Reports Q2 2018 Results – H1 PAT of N30.7bn trails Consensus Forecast of N85.2bn

9.    UBA Declares 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 on WhatsApp

 

Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.

READ MORE:
Related News
SCROLL TO TOP