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 key income lines and significant progress in its subsidiaries’ contributions. .
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 over the same period. of 2021.
Despite the numerous commercial, economic, geopolitical and environmental challenges, including the continuous disruption of the supply chain due to Covid, the conflict in Ukraine and the consequent increase in international commodity prices, and which enabled the first half of the year, the level one lender produced impressive figures, with gross profits reaching N372.4 billion, a solid 17.8 percent growth from N N316 billion which was recorded the same period the previous year.
Operating profit also grew by 20.1% to N256 billion over the period, while the bank’s after-tax profit closed the first half up to N70.3 billion, up 16.1% over the same period. period of 2021 (60.6 billion N).
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, increasing by 5.4 percent. to around N9 trillion.
UBA has fulfilled its core mandate of providing loans to creditworthy clients, loans and advances growing from 4% to reach N3 trillion, while deposits have it increased 7.9% to N7.6 trillion at the end of the period.
However, shareholder funds declined slightly by 2% to N788.5 billion, mainly due to the reduction of its foreign and foreign operations conversion reserve. fair value losses incurred as a result of the valuation of investment securities caused by the increase in interest rate regimes around the world.
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 in. 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 per share for each ordinary share of N0.50 per share held by its shareholders.
Oliver Alawuba, Group Managing Director of UBA, 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 mission to deliver value superior to our stakeholders had increased low-cost customer deposits and spurred the growth of its payment and transaction banking services.
“The 2022 balance sheet showed the first signs of recovery for economies around the world, despite the continuous 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 12.6% to N85.7 billion, with double-digit growth recorded across all major income lines. The Bank also experienced a decent 20% growth in net interest income as it continues to moderate the cost of funds while improving returns on assets, contributing to the strong Operating result up 20%. “Our investments in the technologies of peak have continued to produce the expected results, as evidenced by the huge increase in our digital banking revenues, which grew 22.7% yoy to N 36.3 billion.These gains allowed us to optimize net profit despite accelerating inflationary pressure, currency devaluation and the increase in regulatory costs, “he said..
Alawuba also said he was pleased with the Bank’s progress in increasing its market share in Africa. “Our personal banking segment has continued to grow as we expand our branch network, trusted brand, competitive product offerings and quality service delivery,” he said, in order to increase our penetration. in the Retail segment “,
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 business growth. “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,” she said.
United Bank for Africa Plc is a leading Pan-African financial institution providing banking services to over 25 million customers through more than 1,000 commercial offices and customer touch points in 20 African countries.
With a presence in New York, London and Paris and now the United Arab Emirates, UBA connects people and businesses across Africa through retail, commercial and corporate banking, innovative cross-border payments and remittances, commercial finance and related banking services.