UBA total assets hit N6.8 trln by June 2020
United Bank for Africa (UBA) Plc on Wednesday said total Assets surpassed the N6 trillion mark as it leaped to N6.8 trillion as of the end of June 2020 while its operating income grew by 7.7 percent to N197.1 billion compared N182.9 billion previously.
The bank in a statement said Shareholders’ Funds remained strong at N634.7 billion by June ending up from N597.9 billion in December 2019.
The bank Profit Before Tax (PBT) declined 18.7 percent to N57.13 billion at the end of the first six months of 2020 compared with N70.27 billion recorded in the corresponding period of last year.
“Our 2020H1 results is yet another demonstration of the resilience of our business model in an extremely uncertain and tough operating environment, Kennedy Uzoka, chief executive of the bank said.
“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 percent growth in gross loan to customers, reaching the N2.3 trillion mark.
“The Group achieved N114.3 billion, indicating 10 percent year-on-year growth in interest income from loans and advances to customers, as well as credit related fees and commissions,” Uzoka said.
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Uzoka said that notwithstanding the lock-down in a number of countries and the general lull in several economic sectors, UBA’s banking channels remained open to customers ‘24/7’, adding that “Fortunately, we had proactively built robust electronic channel platforms to enable us serve customers efficiently, and deliver services to them in the comfort of their homes.
“We remain committed to our drive as ‘Africa’s Global Bank’ and confident of claiming and sustaining industry leadership on key metrics across geographies where we operate. We will strive to deliver our services in a sustainable way, ultimately leveraging our best-in-class digital capabilities to delight our 21 million (and growing) customers across 23 countries.”
UBA’s Group CFO, Ugo Nwaghodoh said; “Our H1 2020 results reflect the inherent benefits of diversification as we have seen marked growth in contribution from the subsidiaries across Africa.
“Our Rest-of-Africa operations have continued to break new grounds in market share gains, providing a buffer for Group earnings. As the global and local economies begin to improve, we remain optimistic of a better performance in the second half of the year, with expected improvement in the Group’s NIM and ROAE which stood at 5.4 percent and 14.4 percent respectively as at end of H12020.
“We defensively positioned our loan portfolio whilst we grew gross loans by 6.4%, maintaining our prudent risk appetite, even as NPL ratio for the Group moderated to 4.1% (from 5.3% in 2019FY). We have prudently set-up reserves for loan impairments in recognition of potential losses on the portfolio, resulting in 150% growth in our provisioning,” Nwaghodoh said.