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By Odunewu Segun
Shareholders of the United Bank for Africa (UBA) has commended the bank for the 75 kobo dividend declared in spite of challenging operating environment in the country.
One of the shareholders, Mr. Shola Aboderin, the immediate past Chairman, Ibadan Zone Shareholders Association gave the commendation at the weekend during the 55th Annual General Meeting (AGM) of the bank held in Lagos.
Aboderin said that the bank’s earnings, profit before tax and capital adequacy ratio were impressive, despite economic headwinds. He lauded the bank for financing many projects during the period under review, noting that it had added value to Nigeria and Africa as a whole.
Aboderin urged the bank’s new Managing Director to surpass the achievements recorded by the immediate past Managing Director, Mr. Philip Oduoza.
Mrs Bisi Bakare, the President, Pragmatic Shareholders Association of Nigeria, said shareholders were happy with the 75k dividend declared in 2016 and urged the bank to do more in the current financial year.
Dr Farouk Umar, the President, Association for the Advancement of the Rights of Nigerian Shareholders, commended the board and management for good performance and ability to sustain dividend policy.
Umar said the board had tried to sustain the bank’s mission of creating superior value for the stakeholders, abiding by ethical standard and building an enduring institution.
United Bank for Africa (UBA) at the weekend approved payment of final dividend of N19.9 billion for the financial year ended Dec. 31, 2016.
The dividend translates to a final dividend of 55k per share, against 40k per share paid in 2015. This is in addition to the 20k interim dividend earlier paid by the bank, bringing the total dividend to 75k, against 60k declared in 2015.
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The bank posted gross earnings of N383. 65 billion during the year under review against N314.84 achieved in the previous year, an increase of 22 per cent.
Profit before tax stood at N90.64 billion in contrast with N68.45 billion in 2015, representing a growth of 32.4 per cent. Its profit for the year increased by 21.1 per cent to N72.26 billion from, N59.65 billion in the comparative period of 2015.
Mr Tony Elumelu, the bank’s Chairman, said its performance in capital adequacy and risk management illustrated the board’s commitment to the best governance principles.
Elumelu said that the bank would focus on customer needs by delivering customer excellence to create sustainable shareholder value.
Mr. Kennedy Uzoka, the bank’s Group Managing Director, attributed the company’s growth to culture of innovation in service and product offerings, investment in most relevant new technologies and continuous investment in human capital.