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UBA declares N132bn as 2020 profit after tax

United Bank for Africa Plc (UBA) announced its audited results for the full-year ended December 31, 2020, recording impressive growth across its top and bottom lines. The bank also proposes a final dividend of 35 kobo per share.

The 2020 audited financials filed at the Nigerian Stock Exchange (NSE) yesterday, showed that bank’s gross earnings grew by 10.8 per cent to N620.4 billion, compared to N559.8 billion recorded in the corresponding period of 2019. The Bank’s total assets also grew by 37.0 per cent to N7.7 trillion for the year under review.

Despite the challenging business environment during the COVID-19 pandemic and the resultant effect on economies globally, the Bank’s Profit Before Tax was impressive at N131.9 billion, compared to N111.3 billion at the end of the 2019 financial year.

In the same vein, the Profit After Tax rose remarkably by 27.7 per cent to N113.8 billion compared to N89.1 billion recorded at the end of the 2019 financial year.

On the cost side, operating expenses grew by 10.1 per cent to N249.8 billion, as against N217.2 billion in 2019, well below average inflation rate of 13.2 per cent for the year, thus reflecting the bank’s cost effectiveness.

In its usual tradition of rewarding shareholders, the Bank proposed a final dividend of N0.35 kobo for every ordinary share of 50 kobo. The final dividend, which is subject to the affirmation of the shareholders at its Annual General Meeting, will bring the total dividend for the year to N0.52kobo as the bank had paid an interim dividend of N0.17 kobo earlier in the year.

Speaking on the result, the group managing director/CEO, Kennedy Uzoka noted that the year 2020 was important for UBA Group, as it gained further market share in most of its countries of operation.

He said, “We ended a very challenging year on a reassuring note. The Bank recorded double-digit growth in both our top and bottom lines, as gross earnings and after-tax profit grew by 10.8 per cent and 27.7 per cent to N620.4billion and N113.8 billon respectively. Return on equity was 17.2 per cent, even as our cost-to-income ratio moderated to 61.3 per cent. Our earnings per share of N3.20 is a 26.8 per cent growth from the preceding year, as we continue to ensure maximum value creation for our highly esteemed shareholders.”

Speaking on the bank’s strategy, he said, “Our primary strategy will continue to focus on providing excellent services from our customers’ standpoint, putting the customer first always. Looking ahead, I am inspired by the achievements we have made since the launch of our transformation programme.

“We have expanded market share considerably across the geographies where we operate and are consolidating our digital banking leadership in Africa. We will continue to leverage our diversified business model and dedicated workforce to further strengthen our position as ‘Africa’s Global Bank’.”

 

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