Connect with us

BUSINESS

UBA Delivers N300.6 Billion Gross Earnings, Declares N0.17k Interim Dividend

Published

on

Africa’s leading financial institution, United Bank for Africa (UBA) Plc, has announced its audited financial results for the half year ended June 30, 2020, showing commendable growth across key performance indices as well as increased contribution from its African subsidiaries.

Notwithstanding the challenging business and economic environment occasioned by the Covid-19 pandemic, the pan African financial institution was able to deliver growth in its gross earnings which rose to N300.6bn up from N294bn recorded in the same period of 2019.

According to its results filed with the Nigerian Stock Exchange (NSE), the Group recorded N2.2 trillion in net loans to customers, representing a 6.1% growth even as deposits from customers increased impressively by 25.2% to N4.8tn. Net interest income grew by 8.4% to N119.3billion, whilst net fee and commission income stood at N38.6billion representing a 7.0% increase compared to the similar period in 2019.

As at June 30, 2020, the Bank’s Total Assets surpassed the N6tn mark as it leaped to N6.8 trillion. Operating income also grew by 7.7% to N197.1bn compared to N182.9bn while profit before tax stood at N57.1bn from N70.3bn in 2019, yielding a 14.4 per cent annualised return on average equity.

The bank’s Shareholders’ Funds remained strong at N634.7bn up from N597.9bn in December 2019, driven by growth in retained earnings, a reflection of UBA’s capacity for business growth. In line with its culture of paying both interim and final cash dividend, the Board of Directors of UBA Plc declared an interim dividend of N0.17 per share for every ordinary share of N0.50 each held by its shareholders.

Commenting on the results, UBA’s Group Managing Director/Chief Executive Officer, Mr. Kennedy Uzoka said “Our 2020H1 results is yet another demonstration of the resilience of our business model in an extremely uncertain and tough operating environment. We recorded commendable growth in our underlying business in terms of customer acquisition, transaction volumes and balance sheet whilst inflation, depressed yield environment and exchange rate volatilities impacted our net earnings as anticipated.

He further stated, “Despite the short-term challenges to various economic sectors occasioned by the Covid-19 pandemic, we focused on the fundamentals of businesses in growth-driving sectors of various economies in which we operate and achieved 6.4% growth in gross loan to customers, reaching the N2.3trillion mark. The Group achieved N114.3 billion (a 10% YoY growth) in interest income from loans and advances to customers, as well as credit related fees and commissions.
http://classicmagazine.com.ng/wp-content/uploads/2020/06/IMG-20200624-WA0007.jpg/

Uzoka explained that notwithstanding the lock-down in a number of countries and the general lull in several economic sectors, UBA’s banking channels remained open to customers ‘24/7’, adding that “Fortunately, we had proactively built robust electronic channel platforms to enable us serve customers efficiently, and deliver services to them in the comfort of their homes. Notably, we are adjusting our operating model in response to the ‘new normal’ and will continue to optimise the way we work and serve customers in the days ahead.”

He expressed confidence in the bank’s capacity to deliver good returns to shareholders: “we remain committed to our drive as ‘Africa’s Global Bank’ and confident of claiming and sustaining industry leadership on key metrics across geographies where we operate. We will strive to deliver our services in a sustainable way, ultimately leveraging our best-in-class digital capabilities to delight our 21 million (and growing) customers across 23 countries.”

Also speaking on the results, UBA’s Group CFO, Ugo Nwaghodoh said “Our H1 2020 results reflects the inherent benefits of diversification as we have seen marked growth in contribution from the subsidiaries across Africa. Our Rest-of-Africa operations have continued to break new grounds in market share gains, providing a buffer for Group earnings. As the global and local economies begin to improve, we remain optimistic of a better performance in the second half of the year, with expected improvement in the Group’s NIM and ROAE which stood at 5.4% and 14.4% respectively as at end of H12020.

“We defensively positioned our loan portfolio whilst we grew gross loans by 6.4%, maintaining our prudent risk appetite, even as NPL ratio for the Group moderated to 4.1% (from 5.3% in 2019FY). We have prudently set-up reserves for loan impairments in recognition of potential losses on the portfolio, resulting in 150% growth in our provisioning. Albeit, cost of risk moderated to 0.7% from 0.9% in 2019FY. The Group’s capital adequacy ratio increased to 24.9% providing a very strong buffer for asset growth. We remain committed to maintaining our robust risk management practices, as profitable growth and good asset quality remain our priority in 2020,” he noted.

United Bank for Africa Plc is a leading Pan-African financial institution, offering banking services to more than twenty-one million customers, across over 1,000 business offices and customer touch points, in 20 African countries. With presence in the United States of America, the United Kingdom and France, UBA is connecting people and businesses across Africa through retail; commercial and corporate banking; innovative cross-border payments and remittances; trade finance and ancillary banking services.

Continue Reading
Advertisement
Click to comment

Leave a Reply

BUSINESS

FIRSTBANK’S CEO, ADESOLA ADEDUNTAN, BAGS FORBES BEST OF AFRICA AWARD

Published

on

Nigeria’s leading financial inclusion services provider, First Bank of Nigeria Limited, has announced that its Chief Executive Officer, Dr.  Adesola Adeduntan, has been honoured with the Forbes Best of Africa Award. The award presentation was held on Friday, 11 September 2020 at a virtual event by Forbes in conjunction with the Foreign Investment Network (FIN).

 

The online roundtable discussion themed “Harnessing the financial resources and social capital of philanthropy to making a lasting impact” was supported by the World Philanthropy Network and featured a keynote address by former Nigerian President, Chief Olusegun Obasanjo (GCFR). The opening remarks was presented by Mrs. Olayinka Fayomi, Chairman, Foreign Investment Network (FIN).

 

Other award honourees were Captain (Dr.) Idahosa Wells Okunbo, CEO of Ocean Marine Security Ltd; Mahmood Ahmadu (OON), Founder and Executive Chairman of Online Integrated Solutions Ltd. Her Excellency Badria Al Mulla, Chairman, International Emirates Business Group (IEBG) was honoured with the FIN Award.

 

The discussions at the event were by Baroness Osamor Martha, Incumbent Member of Parliament, UK; H. E. Prince Dapo Abiodun, Executive Governor of Ogun State, Nigeria; Sir. Chief Kessington Adebutu, Chairman, Premier Lotto and H.E Zulfiquar Ghadiyali, Director at the Royal Office of Sheikh Tahnoon Al Nayhan Abu Dhabi; Mrs. Onikepo Akande, former Minister of Trade and Industry, Nigeria, amongst many others. The closing remarks was by Mr. Nick Kochan, Managing Partner Foreign Investment Network (FIN).

 

Appreciating his award, Dr. Adeduntan said, “I am truly humbled to receive the Forbes Best of Africa Award and I am grateful to the Forbes team for this coveted recognition and award. I owe profound gratitude to our customers; and to the Board, Management and Staff of First Bank of Nigeria Limited and all our Subsidiaries, for their cooperation in delivering the best to our esteemed customers and shareholders, and ensuring that we give back to the society in which we have sustained our business for over 126 years.”

 

“This Forbes Best of Africa award is an incentive to do more in Corporate Responsibility and Sustainability as Africa’s bank of first choice. Therefore, I dedicate this award to my colleagues at FirstBank and its Subsidiaries who are fully committed to our quest to remain truly beyond comparison – a haven of resilience, trust, safety, security, excellent corporate governance, entrepreneurship, professionalism, innovation and customer-centricity,“ he enthused.

 

According to a statement by Forbes “Adesola Adeduntan believes strongly in the importance of doing well by doing good. In March 2020 he spoke at the Edinburgh School of Business about financial institutions’ role as drivers of financial inclusion.”

“In his leadership role at First Bank of Nigeria Limited (FirstBank), Adeduntan is part of a 126-year legacy of sustained development-oriented services. FirstBank is the region’s foremost financial inclusion services provider.”

 

The Forbes Best of Africa Award is for business personalities with a record of creating and building great global businesses that have made far-reaching contributions to the development of Africa.

Only recently the FirstBank Chief was conferred with The Cranfield Alumnus 2020 Award by Cranfield School of Management Alumni and The African Banking Personality of the Year 2019 by African Leadership Magazine.

Continue Reading

BUSINESS

OGUN PLANS BUSINESS-FRIENDLY POLICIES

Published

on

As part of efforts to ensure Ogun State maintains its lead as the largest industrial hub in Nigeria, the State government says it will continue to implement various business-friendly policies to improve the Ease of Doing Business in the State.
The State Commissioner for Industry, Trade and Investment, Mrs. Kikelomo Longe made this known at a Fast-Moving Consumer Goods (FMCG) company, Rite Foods Limited, Ososa, Odogbolu Local Government Area of the State during an industrial tour.
Mrs. Longe, in statement signed by her Media Aide, Mr. Ismail Oladipo, noted that the Prince Dapo Abiodun Abiodun-led administration has through its various policies and implementation of different infrastructural projects been addressing the various challenges facing businesses in the State.
“The proactive and concerted efforts of the Prince Dapo Abiodun-led administration to address the challenges facing businesses and make them thrive have birthed different Agencies like the Ogun State Investment Promotion and Facilitation Agency (OGUNINVEST), Ogun State Public Works Agency (OGPWA), Ogun State Enterprise Development Agency as well as the inauguration of the Ogun State Business Environment Council (OGBEC) to thicken the State’s economic base,” she said.
She added that the efforts of these Agencies were already yielding positive results as there are multi-million dollar investments that are about to be commissioned while many more investors  have shown serious interest in setting up factories in the State.
The Commissioner assured that the government was already working on providing relief to industries in the State to help cushion the effect of the COVID-19 pandemic on businesses adding that the 50 percent discount on 2020 Land Use Charge paid before the end of September, 2020 is one of the efforts of government in helping businesses at this time.
The Permanent Secretary, Ministry of Industry, Trade and Investment, Mr. Olu. Ola. Aikulola called on manufacturers in the State to link up with the Ministry on challenges their organization would require intervention and mediation especially if it has to do with other State Agencies.
The Managing Director, Rite Foods Limited who also doubles as the State Chairman, Manufacturers Association of Nigeria (MAN), Mr. Seleem Adegunwa lauded the Ministry for “doing a fantastic job in addressing the challenges faced by manufacturers in the State” adding that the success of the last Ogun State MAN quarterly meeting has also been commended by various manufacturers in the State.
He added that the company sources for 90 percent of its raw materials locally while the proportion of expatriates is only one percent in line with its focus as a truly Nigerian company.
 The Executive Secretary, MAN Ogun State branch, Ms. Motunrayo Elegberun also  lauded the Ministry for the success of the MAN quarterly meeting and appealed to the Ministry to help facilitate meetings with other Agencies of government towards addressing challenges facing businesses in the State.
Continue Reading

BUSINESS

FBN INSURANCE BROKERS HOSTS WEBINAR TO SENSITISE SMES ON RISK MANAGEMENT AND CYBER SECURITY

Published

on

FBN Insurance Brokers Limited, a subsidiary of Nigeria’s leading financial services group, FBN Holdings Plc, has announced a webinar to sensitise SMEs on risk management and cyber security. Spearheading discussions at the webinar are seasoned experts on insurance brokerage, cyber security and risk management.

 

The event is themed Risk Management and Business Continuity amidst COVID19 and scheduled for 10:00am on Thursday, 17 September, 2020.  To participate in the event, click here to register.

 

Olumide Ibidapo, MD/CEO FBN Insurance Brokers will speak on Risk Management; Harrison Nnaji, Chief Information Security Officer (CISO), FirstBank will drive conversation on Cyber security and Jamie Eaton, Regional Director, Financial Lines and Client Management, Howden One Insurance Brokers will focus on Cyber Insurance as a risk transfer option for cyber risks.

 

Speaking on the event, Olumide Ibidapo, MD/CEO FBN Insurance Brokers said; “SMEs remain the engine of growth of any economy, especially developing ones like ours and we recognise the indelible roles they play at creating jobs and meeting the economic and social needs of individuals.

 

We are excited with this webinar and implore every business owner to participate, as they will be exposed to very vital information to keep their business afloat and overcome various risks as well as operational challenges, including cyber security threats that have been heightened by the COVID-19 pandemic.”

Continue Reading





FOLLOW US ON TWITTER

Trending