UBA’s Profit Rises By 35% in Q1

The United Bank for Africa (UBA) Plc’s unaudited 2015 first quarter (Q1) results show that the bank’s profit after tax increased by 35 per cent to N17 billion, from N12.6 billion recorded in the corresponding period of 2014.

The results, which covered the period January to March 2015, also showed that the bank witnessed  22 per cent growth in gross earnings to N83.1 billion as at March 2015, from a comparative figure of N68.1 billion made in the first three months of the 2014 financial year.

Also the bank recorded a 36 per cent growth in profit before tax to N18.4 billion as at the period under review, compared to the N13.5 billion it realised as at March 2014.

Mr. Phillips Oduoza, group managing director and chief executive officer of the bank, expressed satisfaction over the performance despite the uncertainties that characterised the Nigerian economy during the first quarter of 2015.

“We witnessed what can best be described as a quantum leap in our profit and balance sheet drivers. Besides the significant growth in profits, I am also impressed by the six per cent quarter-to-date growth in deposits and the low 1.6 per cent non-performing loans (NPL) ratio, which reflects our prudence.  It shows our focus on both profit drivers and risks within our operating environment” Oduoza said.

Speaking on the operations of its African businesses, Oduoza said they contributed over one-fifth of the group’s earnings in the first quarter.

He expressed optimism of a more positive outlook as the bank’s Pan-African operations increasingly gain critical mass across the African markets.

“We remain focused on cross selling initiatives and niche market  play, as we remain committed to building a leading Pan-African financial services franchise and delivering superior value to our shareholders.” Oduoza explained.

The significant growth in profit after tax meant that the bank’s earnings per share at the end of the 2015 financial year is forecast to rise by 35 per cent to N2.06, from N1.53, if the first quarter growth rate is sustained, while return on equity (ROE) is expected to rise to 24.8 per cent from 22.1 per cent within the same period.