United Bank for Africa (UBA) has reported N16.986 billion profit after tax for the first quarter ended March 31, 2016 as against N16.956 billion posted the previous year representing an increase of 0.18 per cent.
The bank in a filing with the Nigerian Stock Exchange (NSE), also said its Q1 2016 Pre-tax profit stood at N18.083 billion in 2016 from N18.389 billion in 2015. Gross earnings also dropped to N74.134 billion compared with N83.098 billion the previous year, accounting for a decrease of 10.79 per cent. The Group sustained its strong profitability, recording an annualised 20 per cent return on average equity (RoAE).
“I am pleased to report yet another impressive performance for the period. In addition to achieving better pricing on our assets and liabilities, we leveraged enhanced service channels in growing transaction banking volumes and fee income,” said the GMD/CEO of UBA Plc, Phillips Oduoza, while commenting on the results.
He explained that the lender recorded an impressive 12 per cent year-on-year growth in net interest income and sustained net operating income at N50 billion for the first three months of the year.
“I am particularly pleased with the increased contribution of the African subsidiaries, which represented 28 per cent of our Group’s top- and bottom- lines in the first quarter of the year”.
He admitted that the first quarter has been challenging, with a host of macroeconomic pressures ranging from inflationary threats to fuel shortages; all of which impacted the business environment.
However, he said UBA remained committed to creating value for its esteemed customers; a strategy, which will sustain its strong profitability through the year.
More so, the Group remained focused on sustaining the quality of the bank’s balance sheet, Mr. Phillips added.
“We grew the loan book by a modest N13 billion or USD65 million in the quarter and maintained our decent asset quality metrics, 1.7 per cent non-performing loans (NPL) ratio and 0.4 per cent cost of risk” Oduoza said.
Source: Newtelegraphonline.com
