Pan African financial institution, United Bank for Africa Group (UBA)
\nPlc has released its unaudited results for the first quarter ended March
\n31st, 2020, showing double-digit improvement across all its major income
\nlines.<\/p>\n
The bank leveraged on modest growth in both interest and non-interest
\nincome as well as increased efficiency to deliver an impressive 8.5
\npercent year-on-year growth in profit before tax in the first three
\nmonths of 2020, to N32.7 billion compared with N30.2 billion recorded in
\nthe first quarter of 2019. Again, UBA sustained its strong profitability
\nrecording an annualized 20% Return on Average Equity (RoAE).<\/p>\n
Driven by a year-on-year growth in interest income, UBA Group recorded a
\n11.8% percent year-on-year growth in gross earnings to close at N147.2
\nbillion for the three months period ending March 2020, compared to
\nN131.7 billion recorded in the first three months of the year 2019.<\/p>\n
The bank’s total assets also rose by 13.4% to N6.4 trillion in the
\nperiod under review, compared to N5.6 trillion recorded at the end of
\nthe 2019 financial; while shareholders’ funds grew to N612.6bn from
\nN597.9 billion in the same period.<\/p>\n
The Group Managing Director\/CEO of the United Bank for Africa (UBA) Plc,
\nMr. Kennedy Uzoka, expressed satisfaction with the Bank’s performance in
\nthe first quarter of 2020, which according to him remains encouraging
\ndespite the challenging business environment.<\/p>\n
He said, “We are pleased with our top and bottom lines in the first
\nquarter of 2020, delivering N147.2billion in gross earnings and profit
\nbefore tax of N32.7billion. The double-digit growth in the topline
\ntestifies to the resilience of our business model as a group, even as
\nthe 17% growth in our fees and commission income underscores our
\ndiversified business model, enabling us to deliver best value to our
\nstakeholders, even in tough macroeconomic scenarios.<\/p>\n
Continuing, the GMD said, “I am very excited about recent successes we
\nhave recorded in all our business segments, especially our retail and
\nelectronic banking businesses within the period, with retail deposits
\naccounting for 72% of customer deposits even as cost-of-funds moderates
\nto 3.3%. We will continue to grow market share in all our markets,
\nwhilst maintaining cost discipline across our businesses, driving
\nefficiency in our processes using best-rated technology.<\/p>\n
Speaking on customers’ growing concerns on banking services during the
\nlockdown due to the coronavirus pandemic, Uzoka explained that the bank
\nhas put in place various strategic channels to ensure that customers
\ntransactions are effectively carried out with ease.<\/p>\n
He said, “In response to the spread of COVID-19 several national
\ngovernments have announced a partial or total lock down in a number of
\nour markets, post Q1 2020. Fortunately, we have built robust electronic
\nchannel platforms to enable us effectively serve our customers from the
\nconvenience of their homes. Despite the lock down, our banking channels
\nhave remained open to our customers 24\/7, even as we continue to align
\nand adapt our operating model to ensure we service our customers
\nexcellently and safely.”<\/p>\n
He noted that as economies and businesses adjust to the headwinds
\noccasioned by the novel Covid-19 pandemic, the bank has been identifying
\nemerging strategic opportunities arising from this and positioning to
\ntake full advantage of this to delight customers and create value for
\nstakeholders. “We also remain committed to our prudent risk management
\npractices, as profitable growth and good asset quality remain our
\npriority in 2020,” he stated.<\/p>\n
The Group Chief Finance Officer, Ugo Nwaghodoh, who also commented on
\nthe result, said, “Our profitability ratios are upbeat and indicative of
\nour good earnings quality and cost efficiencies. We recorded a return on
\naverage equity (ROAE) of 20% for the period, bolstered by a net interest
\nmargin of 6% and 11.6% growth in net fee and commission income. Amidst
\nthe volatile operating environment, the Bank recorded a net loan growth
\nof 9.5% whilst maintaining our low to moderate risk appetite.<\/p>\n
Continuing, he added, “Remarkably, our operating income grew 12.2%,
\ngiving credence to improved operational efficiency across the group, and
\nthe increasing contribution of subsidiaries to our earnings base. We are
\nexploring and taking advantage of all opportunities to improve our
\noperational and balance sheet efficiencies, given the prevailing market
\nconditions”.<\/p>\n
United Bank for Africa Plc is a leading Pan-African financial
\ninstitution, offering banking services to more than eighteen (18)
\nmillion customers, across 1,000 business offices and customer touch
\npoints in 20 African countries. With presence in New York, London and
\nParis, UBA is connecting people and businesses across Africa through
\nretail, commercial and corporate banking, innovative cross-border
\npayments and remittances, trade finance and ancillary banking services<\/p>\n
Pan African financial institution, United Bank for Africa Group (UBA) Plc has released its unaudited results for the first quarter ended March 31st, 2020, showing double-digit improvement across all its…<\/p>\n","protected":false},"author":1,"featured_media":73009,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[17],"tags":[],"class_list":["post-73008","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-exclusive"],"yoast_head":"\n