UBA H1 Post-Tax Profit Rises By 40%

United Bank for Africa Plc (UBA) has reported 40 per cent growth in profit after tax for the half year ended June 30, 2015. The company in a filing with the Nigerian Stock Exchange (NSE), said its half-year net earnings grew to N31.999 billion during the period under review, from N22.856 billion recorded in 2014.This represented an increase of 40 per cent. Similarly, the lenders pretax profit rose 35 per cent to N39.04 billion, from N28.89 billion a year earlier. Gross earnings also leapt to N166.94 billion compared with N138.22 billion the previous year, accounting for an increase of 20.77 per cent.

The bank proposed to pay an interim dividend of 20 kobo. UBA had reported a 36 per cent growth in pre-tax profit for the first quarter ended March 31, 2015. Its pre-tax profit for the first quarter inched up by 36 per cent to N18.38 billion from N13.54 billion recorded the same period last year.

Revenue also advanced to N83.09 billion in the three months to the end of March against N68.07 billion in the same period a year ago. UBA had also reported a 10 per cent increase in gross earnings for the 2014 full year audited results ended December 31, 2014. Gross earnings surged to N290.019 billion from N264.687 billion in 2013. It also recorded a profit after tax of N47.907 billion in 2014 from N46.601 billion in 2013, depicting a growth of 3 per cent.

Earnings received a boost from both Interest and Non- Interest Income showing the bank’s diversified and stable income base. Interest Income rose 5.91 per cent to N197 billion in December 2014 from N186 billion in December 2013, while Non-Interest Income moved up by 18.17 per cent to N93.3 billion from N79.0 billion.

The Group Chief Financial Officer (GCFO), Mr. Ugo Nwaghodoh expressed optimism that the bank will continue to record a steady and sustained increase in its profitability by leveraging on low cost stable funds as well as rising opportunities in the Bank’s target markets in Nigeria and across Africa.

“The performance of our African business was boosted by increased cross selling of our products and a number of other strategic initiatives. As we gain critical mass in the African market, we look forward to increased earnings in line with the diversification of our business across Africa” explained Nwaghodoh.