United Bank for Africa (UBA) Plc has released its full-year financial results for 2021, revealing a profit of N118.68 billion. This represents an increase of 8.72 percent year on year.
In addition, the bank reported earnings per share of N3.39, a 9.35 percent increase from the N3.10 reported a year earlier in 2020. Since reaching N60 billion in 2015, UBA Plc has nearly doubled its profits in six years, with profits now approaching N119 billion.
According to the statement, interest income increased by 10.84 percent in FY 2021, from N427.86 billion to N474.26 billion in the current period. UBA’s profit performance is driven by all margin growth, as income from interest and fees, as well as commission income, all increase year on year.
The Nigerian Lender earned N316.71 billion from its lending business, a 22.06 percent increase from N259.47 billion.
Following a 56% decrease in loan losses, net interest after impairments increased by 30.71 percent to N303.85 billion.
UBA, on the other hand, increased its commission and fee income by 24.98 percent to N158 billion year on year, while also generating a total of N16.39 billion in net trading income, a drastic 70 percent decrease year on year. The drop in trading income is due to losses in foreign currency revaluation and net fair value.
The group’s Board of Directors has proposed a final dividend per share of N0.80 per share, to be paid from the company’s retained earnings account in December 2021. In September 2021, the company paid an interim dividend of N0.20 kobo, bringing the total dividend for the fiscal year to N1.00 kobo.
The proposed dividend will be presented to shareholders for approval at the next Annual General Meeting, after which it will be paid subject to withholding tax at the appropriate rate.
UBA Plc’s dividend yield is approximately 12% based on its current share price.
