United Bank for Africa (UBA) Plc, has announced its audited half year financial results for the half year ended June 30, 2021, showing impressive growth across all major income lines and performance indicators.
The pan African financial institution delivered a 33.4 per cent appreciation in its profit before tax which rose to N76.2 billion as at June 2021, up from N57.1bn recorded in the same period of 2020, translating to an annualised Return on Average Equity of 17.5 per cent as against 15.1 per cent a year earlier.
This feat was recorded despite the challenging business and economic environment that emerged from the slow pace of activities following the global lockdown occasioned by the Covid-19 pandemic.
The results filed with the Nigerian Exchange, showed that the Group’s profit after tax stood at N60.6bn representing a significant rise by 36.3 per cent compared to N44.4 billion recorded in the half year of 2020, while gross earnings grew to N316 billion from N300.6 billion as at June 2020; a five per cent growth.
As at June 30, 2021, the group’s Total Assets crossed the N8 trillion mark as it soared to N8.3 trillion up from N7.7 trillion at the end of the 2020 financial year.
Customer Deposits also crossed the N6 trillion mark growing by 7.4 per cent to N6.1trillion in the period under consideration, compared to N5.7 trillion as at December 2020.
The group’s shareholders’ funds remained robust at N752.5bn up from N724.1 billion in December 2020, reflecting its strong capacity for internal capital generation.
In line with the bank’s culture of paying both interim and final cash dividend, the Board of Directors of UBA Plc has declared an interim dividend of 20kobo per share for every ordinary share of 50kobo each, held by its shareholders.
Mr. Kennedy Uzoka, group managing director/chief executive officer, UBA, expressed delight over the bank’s performance in the first half of the year, adding,
“This has been a strong first half for us, as global economic recovery exceeded expectations, creating a positive rub-off on consumer and corporate confidence, savings and investment activities. We saw this positively impact our business, as we continued to leverage our key strategic levers – People, Process and Technology, and our Customer 1st Philosophy, to revolutionise customer experience at UBA.”
He added that the bank’s investment in the Rest of Africa (excluding Nigeria) continues to yield good results for the group. In his words; “The benefits of pan-African business diversification accruing to the Group is once again evident, with gross earnings and interest income growth of 5.1 per cent and 8.2 per cent respectively, despite the low yield environment in our largest market, Nigeria.
We are making remarkable progress on our strategy that is progressively positioning UBA as the bank of choice on the continent, driven by our emphasis on tech-led innovation and best customer experience.”
Continuing, the GMD pointed out that the bank recognizes the farreaching effects of the pandemic on businesses globally, and remains focused on its promise to always provide our customers with the best banking experiences possible.