The United Bank for Africa Plc, one of the largest financial services Groups in Africa with operations in 19 African countries and three global financial centres, has posted a profit of N16 billion in the first quarter of 2012, surpassing the N15.1 billion profit forecast announced earlier on in the year.
Details of the bank’s unaudited first quarter results released to the Nigerian Stock Exchange on Friday showed that Gross Earnings increased by 33 per cent to N53.9 billion from N40.5 billion recorded in the first quarter of 2011.
Profit before tax grew by over 200 per cent to N16.1 billion compared to N4.8 billion in the corresponding period of last year.
In other details of the results, Cost to income ratio dropped to 65 per cent from 77.7 per cent in 2011, as the benefits of the group’s Global Shared Service centre and other cost control measures kick in.
With solid capital adequacy and liquidity ratios of 22.94 per cent and 57.02 per cent respectively, UBA capped the first quarter performance on a strong note.
In a related development, UBA has also released its full year results and in line with the February profit warning, the bank recorded a loss of N10.5 billion, principally due to one-off write-offs, including those arising from the transfer of loans to the Asset Management Company of Nigeria.
In spite of that, balance sheet growth in 2011 was quite impressive with total assets increasing to N1.94 trillion, a growth of 20 per cent from the N1.62 trillion achieved in 2010.
Contributing to growth in balance sheet were increased borrowings and deposits, which grew by 134 per cent and 14 per cent respectively.
With a loan to deposit ratio of 48 per cent and a strong capital adequacy ratio, the UBA group has significant capacity for credit creation in the coming quarters.
The Group Managing Director/CEO, UBA Plc, Mr. Phillips Oduoza, said: “The financial performance of the bank in the first quarter of 2012, attests to the resilience of the group and a turnaround in our business performance having cleaned up our balance sheet in 2011.
“The Q1 result is our baseline performance and as we enter our business consolidation phase with limited geographic expansion, our business network, products and resources have been re-engineered for optimal value extraction for the benefit of our stakeholders.
“Overall, we are determined to enhance shareholder value by unlocking existing potentials in the Bank, leveraging on its huge resource base and vantage positioning in Africa, as unique sources of competitive advantage.”
Commenting on the first quarter results, the Chief Finance Officer, Mr. Ugo Nwaghodoh, said: “The first quarter result reaffirms UBA’s strong earnings capacity.
“The underlying fundamentals of our business remain very strong, and we shall continue to optimise the balance sheet for even stronger earnings.
“This year will also see significant contributions from our solid expansive solid Africa franchise.”
UBA is a leading Pan African financial services Group with presence in 19 African countries, New York, London and Paris.
Headquartered in Lagos, Nigeria, the Group provides universal banking services to diverse customer groups across Africa.