UBA declares surplus despite challenges posed by COVID-19

United Bank for Africa (UBA) has declared a gross earning of N300.6 billion in the first half of 2020 despite the challenges posed by COVID-19 pandemic.

According to the bank’s audited account submitted to the Nigerian Stock Exchange, the bank saw growth across key performance indices, this was partly because of increased contributions from its African subsidiaries.

The Group recorded N2.2 trillion in net loans to customers, representing a 6.1 per cent growth even as deposits from customers increased impressively by 25.2 per cent to N4.8 trillion.

Net fee and commission income stood at N38.6 billion representing a 7.0 per cent increase compared to the similar period in 2019.

The bank’s total assets surpassed the N6 trillion mark as it jumped to N6.8 trillion. Operating income also grew by 7.7 per cent to N197.1bn compared to N182.9bn.

Profit before tax stood at N57.1bn from N70.3bn in 2019, yielding a 14.4 per cent annualised return on average equity.

The report also showed that the bank’s Shareholders’ Funds remained strong at N634.7bn up from N597.9bn in December 2019, driven by growth in retained earnings, a reflection of UBA’s capacity for business growth.

“In line with its culture of paying both interim and final cash dividend, the Board of Directors of UBA Plc declared an interim dividend of N0.17 per share for every ordinary share of N0.50 each held by its shareholders,’’ the bank said.

UBA’s Group Managing Director/Chief Executive Officer, Mr Kennedy Uzoka said: “Our 2020H1 results is yet another demonstration of the resilience of our business model in an extremely uncertain and tough operating environment.

“We recorded commendable growth in our underlying business in terms of customer acquisition, transaction volumes and balance sheet whilst inflation, depressed yield environment and exchange rate volatilities impacted our net earnings as anticipated.

“Despite the short-term challenges to various economic sectors occasioned by the Covid-19 pandemic, we focused on the fundamentals of businesses in growth-driving sectors of various economies in which we operate and achieved 6.4% growth in gross loan to customers, reaching the N2.3trillion mark.

“The Group achieved N114.3 billion (a 10% YoY growth) in interest income from loans and advances to customers, as well as credit related fees and commissions.’’

Uzoka said notwithstanding the COVID-19 lockdown in a number of countries and the general lull in several economic sectors, UBA’s banking channels remained open to customers ‘24/7’.

UBA, the pan African bank, offers banking services to more than twenty-one million customers, across over 1,000 business offices and customer touch points, in 20 African countries.