PAN Africa financial services
group, United Bank for Africa Plc,
UBA, has announced its unaudited
results for the first quarter of 2016,
showing gross earnings of N74
billion and profit before tax of N18
billion for the three months ended
March 2016.
The Group sustained its strong
profitability, recording an
annualized 20% Return on Average
Equity, RoAE.
“I am pleased to report yet
another impressive performance for
the period. In addition to achieving
better pricing on our assets and
liabilities, we leveraged enhanced
service channels in growing
transaction banking volumes and
fee income” said Phillips Oduoza,
the GMD/CEO of UBA Plc, while
commenting on the results.
He explained that the bank
recorded an impressive 12% yearon-
year growth in net interest
income and sustained net operating
income at N50 billion for the first
three months of the year.
“I am particularly pleased with
the increased contribution of
the African subsidiaries, which
represented 28% of our Group’s
top- and bottom- lines in the first quarter of the year.”
He admitted that the first quarter
has been challenging, with a host of
macroeconomic pressures ranging
from inflationary threats to fuel
shortages; all of which impacted the
business environment.
However, he said UBA remained
committed to creating value for its
esteemed customers; a strategy which
will sustain its strong profitability
through the year. More so, the Group
remained focused on sustaining the
quality of the bank’s balance sheet,
Mr. Phillips added.
“We grew the loan book by a modest
N13 billion or USD65 million in the
quarter and maintained our decent
asset quality metrics, 1.7% nonperforming
loans, NPL, ratio and 0.4%
cost of risk” Oduoza said.
He expressed hope that the
implementation of the 2016 budget
in Nigeria, the bank’s single largest
market, will lead to improved
economic activities and business
opportunities and he assured that UBA
is committed to creating superior and
sustainable value for all shareholders
by leveraging on its unique Pan-
African platform in gaining a fair
share of its target markets.
Ugo Nwaghodoh the Group CFO, in
his explanation of the bank’s strong
performance, attributed it to efficiency
gains from operations and sales.
“We effectively balanced our
growth appetite with profitability,
thus creating value. Year-to-date,
we achieved a 40bps improvement
in Net Interest Margin, NIM,
as we recorded a notable 50bps
moderation in funding cost to 3.5%.
It is my pleasure to report that low
cost, savings and current accounts
now represent 80% of our deposit
funding” Nwaghodoh explained.
He also said that despite a rise
in headline inflation to 12.8%
in Nigeria, UBA’s focus on cost
efficiency initiatives resulted in
a 1.2% year-on-year decline in
operating expenses.
“This performance reinforces our
ability to sustainably create superior
return for our shareholders over the
medium to long term.”
United Bank for Africa Plc is
a leading Pan-African financial
institution, offering banking services
to more than eight million customers
across 615 business offices in 19
African countries. With presence in
New York, London and Paris, UBA
is connecting people and businesses
across Africa through retail,
commercial and corporate banking,
innovative cross border payments
and remittances, trade finance and
ancillary banking services

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