UBA records 35 per cent growth profit in Q1

United Bank for Africa (UBA) Plc, has achieved a profit after tax of N17 billion in its unaudited 2015 first quarter (Q1) performance, against N12.6 billion posted in the corresponding period in 2014.

This, according to the Bank represents an increase of 35 per cent.
Specifically, the result, which covers the period January to March 2015, showed that the bank’s profit after tax grew by 35 percent to N17billion from N12.6 billion within the same period in 2014.

Its gross earnings also witnessed 22 percent growth to N83.1 billion from a comparative figure of N68.1billion made in the first three months of the 2014 financial year.

Also the bank recorded 36 per cent growth in profit before tax from N13.5 billion to N18.4 billion during the period under review.

The Group Managing Director and Chief Executive Officer of the bank Phillips Oduoza, expressed delight on the Bank’s great start to the year, despite the uncertainties that characterized 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 6 percent quarter-to-date growth in deposits and the low 1.6 percent 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 that they contributed over one-fifth of the group’s earnings in the first quarter.  He also expressed optimism for 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.

He explained that the significant growth in profit after tax means that the bank’s earnings per share at the end of the 2015 financial year is forecast to rise by 35per 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 percent from 22.1per cent within the same period, showing significant improvement in returns to shareholders.”

The Group Chief Financial Officer of the bank, Ugo Nwaghodoh, said the bank tapped into efficiency gains in its operations to boost profitability.
He said the bank has seen significant improvement in interest and non-interest incomes across all business lines as well as improvement on average yields on assets.

“We hope to sustain this impressive quarterly performance through the year especially with the recent upgrade of our core banking application which will drive operational efficiencies across the group” the CFO said.