CardinalStone Research United Bank for Africa Plc (UBA: TP N10.01 - BUY)\u00a0has reported a\u00a014.5% YoY increase in EPS to N2.52 for FY\u201919 that was\u00a0largely supported by growth in non-interest (+21.3% YoY) and net-interest (+7.9% YoY) revenues, respectively. However, earnings plunged by 70.0% QoQ on weaker non-interest revenue (-49.8%) and an over three-fold jump in loan impairment charges. The bank proposed a final dividend of N0.80 per share (FY\u201918: N0.65), which translates to a dividend yield of 11.9% based on last market closing price. Some positives: \tUBA's 18.8% YoY loan growth in FY\u201919 reflected the impact of CBN\u2019s measures to stimulate bank lending to the overall economy. Loan growth was particularly stronger in Nigeria (+26.7% vs. other regions: 14.7%), which contributed c.77.8% of new loans created. \tNet interest income (NII) grew by 7.9% YoY despite concerns about the potential impact of yield moderation in the latter part of the year. We note that Q4\u201919 net interest income surprisingly surged by 29.0% YoY. \tNon-interest revenue (NIR) improved by 21.3% YoY, supported by growth in net fee and commission income (+22.2% YoY) and fixed income trading gains (+58.7% YoY). We note the 2.5x increase in net e-banking fees which, in our view, is indicative of the bank\u2019s recent strengthening of its digital footprint across its key markets. \tAlthough operating expenses rose by 10.0% YoY, we note the improvement in efficiency highlighted by the 131 bps contraction in cost to income. We link the improvement in cost to income ratio to the 12.4% growth in operating income. Some concerns: \tDespite the growth in FY earnings, we note some underlying concerns in UBA\u2019s Q4\u201919 performance. Firstly, we highlight the 3.3x QoQ jump in impairment charges, attributable to the aggressive loan growth undertaken by the lender in the last two quarters. This, consequently, drove a 60bps rise in the cost of risk to 0.9% for FY\u201919. For context, the cost of risk soared from 0.7% in Q3\u201919 to 2.2% in Q4'19. \tSecondly, NIR plummeted by c.50.0% QoQ in Q4\u201919. This may have been driven by the 38.7% contraction in net fees and commission income and the N10.6 billion FX revaluation losses (vs. FX gain of c.N440 million as at 9M\u201919) reported in the quarter. Please click\u00a0here\u00a0for the full result.