July 19, 2024
Despite challenges, UBA records N85.7bn profit-before-tax, declares N0.20k interim dividend in H1’22
H1’21: UBA Records 33% YoY Profit Growth, Declares 20k Per Share Interim Dividend
– By Godswill Odiong

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By Eyo Nsima
United Bank for Africa (UBA) Plc, Africa’s leading global bank has announced its audited financial results for the half-year ended on June 30, 2022.

At the end of the first half of the year, UBA Plc was able to deliver a 12.6 per cent appreciation in profit before tax to N85.7bn, up from N76.2bn recorded in the same period of 2021.

In spite of numerous problems, including continued supply-chain interruptions due to COVID-19, the Russia-Ukraine conflict and the commodities, the bank delivered impressive gross earnings, hitting N372.4 billion, showing 17.8 percent increase compared with N316 billion recorded in the corresponding period of 2021.

The result showed that operating income also grew by 20.1% to N256 billion while profit after tax hit N70.3 billion, up by 16.1 percent compared to the N60.6 billion recorded in the corresponding period of 2021.

A breakdown of the bank’s half-year result showed that total assets continued on an upward trajectory, increasing 5.4 percent to about N9 trillion.

However, loans and advances granted to customers increased by 4 percent to N3 trillion; while deposits rose by 7.9 percent to N7.6 trillion at the end of the period.

Commenting on the performance, UBA’s Group Managing Director/Chief Executive Officer, Oliver Alawuba, said the stellar performance was in line with management’s expectation, adding that the bank’s continued focus on its “customer first philosophy’’ to pursue the mission of providing superior value to stakeholders had increased low-cost customer deposits, and boosted the growth of its payment and transaction banking.

He stated: “The financial year 2022 showed initial signs of recovery of economies across the globe, despite continued COVID-induced supply-chain disruptions. However, geopolitical challenges including the Russia and Ukraine conflict, resulted in escalation of global commodity prices, particularly that of grains and crude oil, which have taken a toll on several economies.

“Notwithstanding these developments, our half-year numbers came out stronger than the previous year with top and bottom-line reaching new record highs,” Alawuba said.

He said that the Group’s profitability increased by 12.6% to N85.7 billion, with double-digit growth recorded across key income line.

Also, the Bank recorded a decent 20% growth in net interest income as it continues to moderate cost of funds whilst improving yield on assets, thereby contributing to the strong 20% growth in operating income.

He said: “Our investments in state-of-the-art technology has continued to yield expected results and this is evident in the huge boost of our digital banking income, which grew 22.7% year-on-year to N36.3 billion.

“These gains have enabled us optimise net earnings amid the accelerating inflationary pressure, currency devaluation, and increased regulatory-driven costs.

“Our retail business has continued to grow as we ride on our agency banking network, trusted brand, competitive product offerings and quality service delivery, to deepen our retail penetration.”

He added: “Together, with our highly motivated workforce, we are poised to usher the business into a new era of growth that will deliver superior value to all stakeholders.’’

 

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