United Bank for Africa (UBA) Plc., the pan-African financial services group, has released its audited 2016 full year results, showing significant growth in gross earnings and profits.
The group recorded an impressive 22 per cent growth in gross earnings to N384 billion, as at December 2016, from N315 billion at the end of the 2015 financial year.
As reflected in the results released on March 24 at the Nigerian Stock Exchange (NSE), covering the period January to December 2016, the Group saw a significant 32 per cent 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 per cent to N72 billion, from N60 billion recorded the previous year.
The performance was buoyed by considerable growth in 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.
Following the impressive performance, 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 hold on April 7.
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%, 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% year-to-date rally in the share price, compared to the overall market loss of 5% 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.
“Given the operating environment in 2016, I am very pleased with our profitability – an impressive 32% growth in profit before tax to N91 billion – whilst we have also focused keenly on operational efficiencies, illustrated by the reduction in our Cost-to-Income Ratio,” Uzoka said.
Speaking on its outlook for the 2017 financial year, Uzoka expressed optimism, as the bank’s pan-African operations increasingly gain critical mass across its chosen markets.
“As we implement our Customer First Philosophy, we are approaching 2017 with real optimism, especially with the outlook remaining