United Bank for Africa in its published Audited report for the year ended 31 December 2020 declared a final dividend of 35 kobo to its shareholders. This is in addition to the 17 kobo interim dividend declared in the first half of 2020. Altogether, total dividend pay-out by the bank for year 2020 stands at 52 kobo.
The audited financial statement of UBA revealed growth in the Group’s top line and bottom line figures.
Gross Earnings grew by 10.82% year on year to N620.375 billion as against the Gross earnings of N559.805 billion in 2019.
The Group reported the profit after tax of N113.765 billion, up by 27.7% from the post-tax profit of N89.089 billion reported in 2019.
Earnings per share (EPS) of UBA increased by 27.7% to N3.33 from the EPS of N2.6.
At the share price of N8, the P.E ratio of UBA stands at 2.4x with earnings yield of 41.58%.
Dividends declared is not investors friendly. Knowing well that most of the retail investors are retirees that depends on dividends for survival.
Bank needs a lot of explanations to justify the decision taken.