Connect with us

E-Financial

UBA Group Starts Strong in 2018, Grows Profits to N26.6Bn in Q1

Published

on

United Bank for Africa Group (UBA, Pan African financial institution, has released its unaudited first quarter results, showing significant growth across major income lines.

 

Following a sterling performance in the 2017 financial year, UBA Group delivered another impressive 18% percent year-on-year growth in gross earnings in the first three months of 2018.

 

Leveraging on strong growth in both interest and non-interest income, UBA grew top-line to N119.4 billion in the first three months of the year, ending March 31st 2018 and the Group recorded N26.6 billion in profit before tax, compared to N25.5 billion achieved in the first quarter of 2017.

 

The Group also recorded a profit after tax of N23.7 billion in the first quarter, an impressive 6.2 percent year-on-year growth compared to N22.4 billion achieved in the corresponding period of 2017. The group sustained its strong profitability recording an annualized 18% Return on Average Equity (RoAE).

 

Driven by an 18% year-on-year growth in interest income, UBA Group recorded an 18% percent year-on-year growth in gross earnings to close at N119.4 billion for the three months period ending March 2018, compared to N101.2 billion recorded in the first three months of the year 2017.

Kennedy Uzoka, GMD/CEO of UBAKennedy Uzoka

Mr. Kennedy Uzoka, Group Managing Director/CEO of the United Bank for Africa (UBA) Plc, expressed satisfaction with the Bank’s impressive performance in the first quarter of 2018, despite intensifying competition and moderation in yield environment in Nigeria and Ghana.

 

“This set of first quarter result is a good start to the year and a reflection of our capacity to sustainably grow earnings over the medium to long term. We recorded 18% growth in gross earnings, as both interest and non-interest income grew 18% and 19% respectively. Notwithstanding the moderation in sovereign yield in Nigeria and Ghana, we achieved a 60bps improvement in net interest margin (NIM) to 7.6%, as we extract efficiency gains from balance sheet management,” Uzoka said.

 

“I am particularly pleased with the 8% year-to-date growth in our retail deposit, as it reflected the benefit of improved customer service and continued customer acquisition. We are committed to exceeding our 2018 deposit growth target in the year, with strategic focus on retail, low cost savings and current accounts, which is critical to sustaining our NIM uptrend,” he explained.

 

He said, “We are committed to responsible lending, as we seek to maintain our asset quality. We achieved a 40bps year-on-year savings in cost of risk, a reflection of the quality of our loan portfolio.

 

He expressed confidence on the steady recovery of the Nigerian economy and improving fundamentals of most African countries, where the bank operates.

 

Uzoka emphasized the increasing relevance of its African operations to its bottom line, adding that, “Reflecting our market share gain, we have grown the balance sheet by 6% in the first three months of the year, as we increasingly become systemically important across the 19 other African countries, where we operate. Barring unforeseen circumstances, we look forward to sustaining this strong performance through the year, with the primary objective of delivering superior return to our shareholders.”

 

Also speaking on UBA’s financial performance and position, Ugo Nwaghodoh, Group CFO said Management is committed to delivering on the Group’s financial goals for the year.

 

He said, “We are diligently executing our priorities for the year, as we focus on profitable growth. We are making strong progress in Nigeria, where our continuous market share gain is translating into higher profit. We grew non-funded income by 20%, driven by annuity-type offerings in digital banking. Precisely, the electronic banking income grew 33% year-on-year and we recorded an impressive 40% growth in trade service income, as customers become loyal ambassadors of our enhanced service channels and customer service.”

 

Continuing, he stated, “I am pleased that our drive towards optimal scale across our subsidiary operations is progressing well. More importantly, the contribution of these foreign operations to the Group’s profit is impressively reflective of geographic diversification.

 

“We remain resolute on our determination to leverage growing scale across our foreign operations to extract further cost efficiency, with the objective of moderating our cost to income ratio. More so, our profitability in the first quarter of the year reinforces the Group’s capacity to deliver on target, as our profit for the period translates to 18% return on average equity” Nwaghodoh s

Nigeria CommunicationsWeek believes that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. So since 2007, we have devoted our energy to independent reportage of technology and how they affect lives.

Continue Reading
Advertisement
Comments

E-Financial

eTranzact Fires Obi as CEO, Others over Alleged N11Bn Fraud

Published

on

eTranzact International Plc has confirmed that Mr. Valentine Obi, managing director and some of its other directors will step down, after the Central Bank of Nigeria (CBN) asked the senior management of the payment processor company  to resign.

 

The action is coming in the wake of alleged fraud to the tune of ₦11billion perpetrated on its platform, by Michael Obasuyi, CEO of Platinum Multi-Purpose Cooperative Society Limited on the platform.

Mr. Valentine Obi

In a letter signed by the company’s secretary, eTranzact International, said that Mr. Obi will step down as the company managing director, while Mr. Niyi Toluwalope will be taking over as the managing director in an acting capacity.

 

Until this new appointment, Toluwalope was the Chief Financial officer of the company, a position he has held since 2011.

 

Others affected by the management change include Executive Directors; Sullivan Akala, Ike Eze and Chief Technology Officer, Mr. Richard Omoniyi, Head of Operations, Mr. Kehinde Segun.

 

eTranzact International however denied reports that PricewaterhouseCoopers, PwC, and Earnest & Young have been recruited to review the accounts of the company.

 

eTranzact, claimed that the move for the change in the management of the firm is strictly a decision by the board.

 

“We want to categorically state that there was no fraud in eTranzact International Plc, however, a merchant used the company’s interface with a bank to perpetrate fraud,” the press release made available to Techpoint.ng reads in part

 

The firm also affirms that neither of PricewaterhouseCoopers (PwC) nor Ernst and Young is reviewing the books of the company. eTranzacts claims PwC handles various technology-related assignments from time to time for the company, none of which has to do with account reviewing.

 

E-Tranzact international was incorporated as a Private Limited Liability Company on the 7th of May 2003. It became a public limited liability company on the 7th of August 2009 and was quoted on the Nigerian Stock Exchange (NSE).

 

Its shares are currently trading flat on the Nigerian Stock Exchange at ₦4.55 with its one year return down by 7.14%.

 

Full Text of Release

 

eTranzact International PLC, Africa’s premier e-payments solution provider has announced that it will be making significant changes to the Company’s management team.

 Niyi Toluwalope

Mr. Valentine Obi, Managing Director of the Company will be stepping down and Mr. Niyi Toluwalope will be taking over as the Managing Director in acting capacity. Until his appointment, Mr. Niyi Toluwalope was the Chief Financial Officer, a position he has held since 2011. Other executive positions affected by the management changes are: Executive Directors -Mr. Sullivan Akala and Mr. Ike Eze; Chief Technology Officer – Mr. Richard Omoniyi and Head of Operations – Mr. Kehinde Segun.

 

eTranzact is aware of recent Business Day publications about these management changes and wishes to announce that the changes are strictly eTranzact Board’s decision, and would like to advise all its stakeholders that it is working closely with the regulators, and all other relevant Stakeholders to resolve any issue related to or arising from the management changes.

 

In addition, we want to categorically state that there was no fraud in eTranzact International Plc, however a merchant used the company’s interface with a bank to perpetrate fraud. The eTranzact executives resigned honorably because they have the responsibility for governance in the company. Also, there is no truth about PricewaterhouseCoopers (PwC) or Ernst & Young reviewing the Accounts of the Company. eTranzact retains PwC from time to time for various technology related assignments and none has to do with reviewing the Company’s Accounts.

 

The ISO certifcations are a testament to eTranzact’s focus in adopting and implementing global and best practices to ensure effectiveness, efficiency, confidentiality and integrity in its day to day operations. This marks the beginning of a new journey for the company.”

 

 

Continue Reading

E-Financial

UBA to Reward Loyal Customers in ‘Refer-a-Friend’ Campaign

Published

on

Pan-African Financial Services Institution, United Bank for Africa (UBA) Plc will be rewarding its loyal customers who refer friends and family to the bank in its new diaspora campaign.

 

The campaign is designed to reward customers of the bank who refer their Diaspora friends/relatives to open a UBA account.

 

Specifically, this campaign will last for three months and the bank will be rewarding any customer who refers other customers with the reward of N5,000 for every successfully opened new and funded account.

 

For instance, new and existing customers who refer friends and relatives in the Diaspora to open new UBA accounts will be eligible to grab the reward for as many times as the number of people they refer.

 

According to the campaign managers, the referrer who must have an account with UBA, will have his/her account number inputted in the provided field by the referred. The account number is expected to serve as a reference code for paying the reward, and once the new Diaspora account is funded with a minimum of $100,  $100, £100, €100 or N50,000, for a one-month period, the reward sum of N5,000 will be automatically credited into the Referrer’s account.

 

They further explained that the campaign which kicks-off on May 22, 2018, involves no raffle draws, customers just refer, and redeem their cash prizes after successful funding of the new account.

 

 

 

Continue Reading

E-Financial

Court Orders Zenith Bank to Pay Customer N11m as Damages

Published

on

An Anambra State High Court sitting in Onitsha has ordered Zenith Bank PLC to pay the total sum of eleven million naira to Mr. Iwuchuckwu Okeke of Okeke P.C Stores as damages for detaining his five hundred and fifty thousand naira for ten days and also for reputation and business damages.

 

In its judgement, the court presided by Justice M.N.O Okonkwo ordered the bank to pay a sum of one million naira to the Plaintiff as damages for detaining his five hundred and fifty thousand naira for ten days and the sum of ten million naira as reputation and business damages.

 

According to Plaintiff who deals with the products of the Nigerian Bottling Company, on 1st March 2017, he paid the sum of five hundred and fifty thousand naira to the account of the Nigerian Bottling Company Limited through the defendant and the electronic transaction receipt evidencing the payment was issued to him but the bank failed to effect the transaction timeously blaming the failure on poor network and all attempts by him in approaching the bank to effect the transaction failed.

 

He thereafter wrote the bank through his lawyer and requested that the money be remitted and that also sum of five million naira should be paid to him as compensation to his loss but the bank failed to act accordingly and he had no option than to seek for justice at the court of law in order to save his business as he was out of stock and had no money to order for new products from the Nigerian Bottling Company.

Continue Reading

Trending

Copyright © 2017 Communication Week Media Limited.