The audited results for half year ended June 30, 2018 released by United Bank for Africa Plc, came in with a strong growth indication across key performance metrics.
According to the report filed on Wednesday, the Nigerian lender’s Interest Income was up within the review period by 20.87% from about N155bn of 2017 to about N187bn reported in the corresponding period of 2018.
The group also reported a 3.4% rise in its bottom-line figure for the period under review, though marginal, the After tax profit was up from N42bn to about 44bn in the corresponding period.
Likewise, the shareholders earnings per share grew 3% to stand at N1.28 as against the previous N1.24 also in the corresponding period.
The critical ratio analysis UBA reveals that its stock at the current price of N8.05 (as at the point of this report) is cheap and suitable for consideration but not without due diligence.
The group has a PE Ratio of about 6x with an earnings yield slightly above 15%.
In line with its culture of paying both interim and final cash dividend, the Board of Directors of UBA Plc declared an interim dividend of N0.20 per share for every ordinary share of N0.50 each held on the qualification date – Wednesday, September 05, 2018.
Commenting on the results, the Group Managing Director/CEO, United Bank for Africa Plc (UBA), Kennedy Uzoka, said: “Our performance in the first half the year reflects the resilience of our business model and strategies. Despite declining yields in two core markets, Nigeria and Ghana, we delivered double digit growth in gross earnings. Our performance demonstrates the success of our digital banking initiatives and broader Customer-First strategies”
“We are integrating banking to our customers’ lifestyle, simplifying processes for routine transactions and driving financial inclusion by making banking services accessible and affordable. We are creating opportunities for wealth creation and economic progress, as we empower our customers through innovative platforms and solutions that support their personal and business growth. Our commitment to delivering excellent service is paying-off, as we increasingly win a bigger share of customers’ wallet across our chosen markets. We won the highly coveted “Africa’s Best Digital Bank” Award by Euromoney, demonstrating our pioneering initiatives are being recognised with Leo, our digital banker having been name checked by Mark Zuckerberg,” Mr Uzoka said.
“Our enhanced asset-liability management strategies improved asset yield and grew interest income by 21 per cent despite prevailing yield environment. Our re-engineered sales structure provided the impetus for renewed retail deposit growth. I am particularly pleased by the 24 per cent year-to-date growth in retail savings and current account deposits, underpining the increasing penetration of our digital offerings and the Group’s overarching goal of democratizing banking across Africa. We improved net interest margin to 7.4 per cent in line with our 2018 target, notwithstanding strong competition for wholesale deposits and the impact of rising global interest rates on our foreign currency funding,” he concluded
Also speaking on UBA’s financial performance and position, the Group CFO, Ugo Nwaghodoh, said; “We finished the first half of the year in a stronger position and we are optimistic on the future of our business. Amidst economic recovery and uncertainties in Nigeria, our largest market, we grew net interest income and operating income by 9.6 per cent and 4.1 per cent respectively. We doubled revenue from trade services and grew e-banking income by 24 per cent, a testament to our market share gain, which is driven by innovative offerings. Our foreign operations contributed 40 per cent of Group’s profit, underlining the benefit of our Pan-African strategy.