UBA Delivers Impressive Growth, Records a 20.2% Increase in Gross Earnings

Posted by African Examiner Business News Friday, March 28th, 2014

Lagos-Nigeria: United Bank for Africa Plc announces impressive growth across key financial parameters, due to improved growth drive, sustained operational efficiency and enhanced productivity.

UBA CEO, Phillips Oduoza

In the financial results for the 12 months ended December 31, 2013 submitted to the Nigerian Stock Exchange, UBA recorded a 20.2% increase in Gross Earnings to N264.7bn. This was largely driven by a growth of 40.4% in loans and advances as well as a 25% growth in the Bank’s total deposits. Consequently, the Bank’s loan-to-deposit ratio improved from 38.7% to 44.3%. The remarkable growth in loans and advances, especially in the last quarter of the year, puts the Bank in a vantage position for continued revenue growth in the coming years.

In addition to achieving this growth, UBA also enhanced its operational efficiency and productivity with the Cost-to-Income ratio improving by 4% from 64.8% to 60.9%. This improvement was largely through prudent cost management policies, enhanced efficiency of the Bank’s network and the impact of other productivity initiatives.

The Bank’s Profit Before Tax grew by 7.8% to N56.06bn, representing a Return on Equity of 21.8%. The Bank ended the year with a total balance sheet size of N2.64 trillion and a total deposit base of N2.22 trillion.

Commenting on the results, the Group Managing Director/CEO, UBA Plc, Mr. Phillips Oduoza said “UBA’s Gross Earnings for the year is quite impressive, with positive contributions from all our businesses. Our Bank achieved a good result despite a challenging operating environment, demonstrating the strength and resilience of our people and their dedication to implementing our growth plans in 2013.”

Following the impressive performance, the bank has proposed a dividend of 50k per share which further attests to the bank’s unflinching commitment to a consistent return to shareholders.

UBA is a pan-African Bank with operations in 19 African countries, New York, London and Paris. The Bank adheres to the strictest corporate governance and risk management practices, to ensure the long term profitability and sustainability of its business.