The Pan-African bank, United Bank for Africa (UBA) Plc, announced its audited financial results for the half year ended June 30, 2022, posting double-digit growth across all major income lines and significant progress in its contributions. check.At the end of the first two quarters of the year, the Bank was able to realize a 12.6% gain in pre-tax profit at N85.7 billion, compared to N76.2 billion at the end of the year. .
Despite the numerous commercial, economic, geopolitical and environmental challenges, including the continuous interruptions in the supply chain due to Covid, the conflict in Ukraine and the consequent increase in international prices of raw materials, and which have enabled the first half of the year, the Tier 1 lender provided impressive figures, with gross profit reaching N372.4 billion, a solid 17.8% growth from N316 billion which was recorded the same period the previous year.
Operating profit also grew 20.1% to N256 billion over the period, while the bank’s post-tax profit closed the first half up to N70.3 billion, an increase of 16.1% over the same period. period of 2021 (60.6 billion Naira).
Another breakdown of the bank’s half-year result, filed with the Nigerian Exchange Group (NGX), in the early hours of Thursday 8 September, showed that total assets continued on an upward trajectory, growing by 5.4%, approximately. Naira 9 trillion.
UBA fulfilled its core mandate of lending to creditworthy clients, with loans and advances rising 4% to Naira 3 trillion, while deposits increased 7.9% to Naira 7.6 trillion at the end of the year. period.
Shareholder funds, however, declined slightly by 2% to Naira 788.5 billion, mainly due to the decrease in its conversion reserve for foreign operations, as well as the fair value losses incurred by the fact of the valuation of the investment securities caused by the increase in the interest rate regime.
With PAT’s strong double-digit growth versus the marginal decline in equity funds, the Group’s return on equity (RoE) ended the period up 17.7%, while the return on assets (RoA) settled. to 1.6%, an increase of 9 basis points.
Reaffirming its commitment to shareholders and the public investor, the Board of Directors of UBA Plc has declared an interim dividend of 20 kobo for every 0.50 Naira common share held by its shareholders.
Oliver Alawuba, UBA’s Group Managing Director, who commented on the result, said the remarkable performance was in line with management expectations, adding that the bank’s continued focus on its Customer 1st philosophy to pursue its mission of providing a greater value to our stakeholders has had increased low-cost customer deposits and spurred the growth of payments and banking transactions.
“The 2022 balance sheet showed the first signs of recovery for economies around the world, despite the continuing disruptions in the supply chain caused by COVID-19. However, geopolitical challenges, including the conflict between Russia and Ukraine, have led to inflation of commodity prices, especially wheat and crude oil, which have dealt a severe blow to several economies. Despite these developments, our half-year figures were higher than the previous year, with highs and lows reaching new records, “said Alawuba.
According to him, the Group’s profitability increased by 12.6% to reach N85.7 billion, with double-digit growth recorded across all major income lines. The bank also experienced a decent 20% interest margin growth as it continues to moderate the cost of funds while improving asset returns, contributing to its strong 20% interest margin growth. “Our investments in advanced technologies continued to deliver the expected results, as evidenced by the huge increase in our digital banking revenues, which grew 22.7% year-on-year to reach Naira 36.3 billion. These gains allowed us to optimize net profit despite accelerating inflationary pressure, currency devaluation and rising regulatory costs, “he said.
Alawuba also said he was pleased with the bank’s progress in increasing its market share in Africa. According to him, “Our personal banking segment has continued to grow as we evolve our branch network, our trusted brand, our competitive product offerings and our delivery of quality services that strengthen our rate of return. penetration”.
Speaking of his recent appointment as Group Chief Executive, along with five other executive directors, he assured the investing public of his tireless commitment to the growth of the company. “Together with our highly motivated people, we are poised to usher in a new era of growth that will deliver superior value to all stakeholders,” he said.
United Bank for Africa Plc is a leading Pan-African financial institution, providing banking services to over 25 million customers, at over 1,000 customer touchpoints, in 20 African countries.
With a presence in New York, London and Paris and now in the United Arab Emirates, UBA connects people and businesses across Africa through its retail, commercial and corporate banking, innovative cross-border payments and remittances, trade finance and other services. banking related.