UBA slashes Interim Dividend to 17 Kobo as HY’20 Profit Drops 22%

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The United Bank for Africa (UBA) Plc released its audited results for the half-year ended June 2020, which showed that the pan-African bank recorded a decline in its profit after tax of N44.431 billion, compared with the N56.7 billion it realised in the comparable period of 2019.

UBA’s net profit of the lender went down by 22 per cent to N44.4 billion from N56.7 billion last year, while the pre-tax profit reduced to N57.1 billion from N70.3 billion, with the earnings per share (EPS) dropping to N1.24 from N1.62.

The board of UBA recommended the payment of an interim dividend of 17 kobo for the period under review, 15 per cent or 3 kobo lower than the 20 kobo paid in the corresponding period of 2019.

Highlights

  • Interest Income grew by 0.3% to N205.59bn from N204.89bn in the previous quarter.
  • Profit before tax stood at N57.13bn.
  • Profit after tax stood at N44.43bn.
  • Net Assets grew by 6.1% from N597.98bn to N634.73bn

Gross Earnings & Interest Income

According to the results, UBA said it had an interest income of N205.6 billion in the first six months of this year, higher than N204.9 billion recorded in the same period of last year.

UBA’s gross earnings also grew to N300.2 billion, compared with the N294 billion it made in the comparable period of 2019.

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Loans & Deposits

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Total loans to customers grew by 6.1 per cent to N2.186 trillion, as against the N2.061 trillion recorded last year, just as its deposits from customers increased significantly by 25.2 per cent, from N3.832 trillion last year, to N4.8 trillion.

The UBA Group’s total asset as at first half of 2020 was N6.8 trillion, as against the N5.8 trillion it was in the comparable period of last year, while net interest income grew by 8.4 per cent to N119.3 billion.

However, the interest expense reduced to N86.3 billion from N94.8 billion in the first half of last year, while the net interest income rose to N119.3 billion from N110.1 billion.

The fees and commission income increased to N55.9 billion in the period under review from N52.3 billion just as the fees and commission expense jumped to N17.3 billion from N16.3 billion, with the net fee and commission income closing at N38.6 billion as at June 30, 2020, as against N36.1 billion as at June 30, 2019.

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During the period, investors traded a total of 3,523,723,566 units of UBA shares on the stock exchange, representing 10.3 per cent of the shares outstanding of the lender.

UBA slashes Interim Dividend to 17 Kobo as HY’20 Profit Drops 22%
United Bank for Africa Plc (UBA)

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