LAGOS, NIGERIA – February 28, 2019 – United Bank for Africa Plc (“UBA”, the “Bank” or the “Group”), (Bloomberg: UBA: NL/Reuters: UBA.LG) announced its Audited 2019 Financial Results. Gross earnings grew 13.3% year-on-year (YoY) to N559.8 billion, total assets grew 15.1% to N5.6 trillion and profit before tax of N111.3billion. The Bank has proposed a final dividend of 80 kobo for every 50 kobo ordinary share, bringing the total dividend for the financial year ended December 31, 2019, to N1.00.
- Gross Earnings: N559.8 billion, compared to N494.0 billion in 2018FY (13.3% YoY growth).
- Operating Income: N346.3billion, a 12.4% YoY increase compared to N308.2 billion in 2018FY.
- Operating Expenses of N217.2 billion, compared to N197.3 billion in 2018FY (10.1% YoY growth).
- Profit Before Tax: N111.3 billion, compared to N106.8 billion in 2018FY (4.2% YoY growth).
- Profit After Tax: N89.1 billion, a 13.3% YoY growth, compared to N78.6 billion in 2018FY.
- Cost-to-Income Ratio: 62.7%; compared to 63.9% in 2018FY.
- Annualized Return on Average Equity (RoAE): 16.2%; compared to 16.1%; in 2018FY.
- Total Assets: N5.6 trillion, compared to N4.9 trillion, as at 2018FY (15.1% YoY growth).
- Net Loans: N2.1 trillion; reflecting an impressive 20.2% YoY growth in the loan book.
- Customer Deposits: N3.8 trillion, compared to N3.3 trillion as at 2018FY; representing 14.4% YoY growth.
- Shareholders’ Funds: N 597.9 billion, up 19% YoY compared to 2018FY.
Commenting on the result, Kennedy Uzoka, the GMD/CEO, said;
“The year 2019 was a very remarkable one for UBA given the adverse market developments. Nonetheless, we achieved sizable growth in the balance sheet and earnings, even as we reposition the bank for the future. Gross earnings crossed the N500 billion threshold to N559billion, whilst total assets also crossed the N5 trillion mark for the first time to N5.6trillion.
Our strategy remains centered around unparalleled service to our esteemed customers. Accordingly, we are making significant investments in a technology-driven transformation journey. We have recorded early gains as reflected in a 39% growth in electronic banking income to N38.8bn in 2019 from N27.9bn in 2018. Our businesses are gaining commendable share in their markets across regions in Africa, as we deepen the scale and scope of our operations.”
He further stated; “I am indeed excited about the synergy we have built within the UBA Group and the significant progress we have made in our transformation drive. We have positioned the Bank as a truly pan-African banking franchise, leveraging our operations in France, United Kingdom, and the USA to deepen intra-African trade, and facilitate capital flows between Africa and the rest of the world. In 2020, we will pursue the aggressive deepening of market share in all our subsidiaries, leveraging technology, rich human resources and our customer-first strategy to win in all the markets we operate, notwithstanding the challenges of our operating environment”.
Also speaking on the performance, the Group CFO, Ugo Nwaghodoh said;
“We navigated the fragile yield environment in our largest market, to deliver a 7.9% growth in net interest income to N221.9 billion. This was bolstered by a 7.8% and 13.9% growth in interest income from corporate loans and investment securities respectively, as well as a 4.0% cost of funds driven by our stable retail deposits. Resulting from cost-efficiency gains within the year, the cost-to-income ratio moderated to 62.7% (64% in 2018), whilst profit for the year grew 13.3%, to N89.1billion, translating to 16.2% return on average equity (RoAE).
The Group recorded a 0.8% cost-of-risk reflecting our strict credit and underwriting standards, which has helped to keep Group NPL at 5.3% (and 2.5% for the parent bank). As we will continue to pursue a cautious loan growth strategy in 2020, we have strategically maintained strong capital adequacy and liquidity ratios at 23.4% and 43.9% respectively, ensuring sufficient headroom for growth. The Bank will sustain this growth momentum, to ensure we consistently deliver sustainable value to our valued stakeholders”.