UBA grows PBT by 32%, declares 55k dividend

United Bank for Africa (UBA) Plc, has released its audited 2016 full year results, showing growth in gross earnings and profits.
The Group recorded about 22 percent growth in gross earnings to N384 billion, as at December 2016, from N315 billion at the end of the 2015 financial year, a demonstration of its ability to grow profitability despite the difficult macro-economic environment. In addition to the rising adoption of electronic banking channels in many of the African markets, where UBA operates, it leveraged its strong franchise and geographical footprint.
As reflected in the results released on March 24, 2017 at the Nigerian Stock Exchange (NSE), covering the period January to December 2016, the Group saw a significant 32 percent growth in profit before tax to N91 billion, compared to N68 billion profit recorded over the same period of 2015.  UBA’s profit after tax grew by 22 percent to N72 billion, from N60 billion recorded the previous year. The performance was buoyed by considerable growth in both interest and non-interest income, as well as increasing efficiency gains from cost management initiatives. UBA’s subsidiaries outside of Nigeria are increasingly gaining market share, reinforcing the strong and impressive subsidiary contribution to the Group, estimated at one-third of profit in 2016, from a quarter in 2015 financial year.
Accordingly, the Board of Directors proposed a final dividend of 55kobo, subject to the approval of the shareholders at the forthcoming Annual General Meeting, scheduled to be held on 07 April, 2017 at the Eko Hotel and Suites in Lagos. The bank had earlier paid an interim dividend of 20k to shareholders, bringing the total dividend for the 2016 financial year to N0.75, an unprecedented yield of 13.9 per cent, based on the stock’s unit price of N5.39 on the floor of the NSE. The results and dividend proposal justify investor confidence in the Bank, as reflected in the 20 per cent year-to-date rally in the share price, compared to the overall market loss of 5 per cent over the same period.
Commenting on the results, Kennedy Uzoka, the group managing director and chief executive officer expressed satisfaction at the resilience of the bank, despite the macroeconomic challenges in a number of countries where UBA operates.