-Declares N3.9 billion PAT in Q1 2011 Result

By Yakubu LAAH investadvocate

Lagos (INVESTADVOCATE)-The Board of Directors of Africa’s largest Financial Institution, United Bank for Africa Plc (UBA) has recommended a 5 Kobo dividend payout and 1 for 4 bonus issue to investors of the Bank; as it declares a N3.9 billion Profit After Tax (PAT) in the First Quarter (Q1) 2011 Result.

This was contained in Results announcements of the Bank for the Audited Year Ended December 2010 and Q1 Report for the period ended March 31 2011 released Thursday April 14 2011 on the Floor of the Nigerian Stock Exchange (NSE) in Lagos Nigeria and made available to investadvocate.

According to UBA, closure date of Register of investors of the Bank expected to enjoy the 5 Kobo dividend and 1 for 4 bonus issue is April 27 to April 29 2011, while payment date is May 17 2011.

The Annual General Meeting (AGM) of the Bank where its Directors and shareholders are expected to approve the twin dividend declaration is scheduled to hold on May 13 2011 at Grand Hotel Asaba Delta State Nigeria.

In a Statement made available to investadvocate by Charles Aigbe, Group Head, Corporate Communications, Marketing and Corporate Relations Directorate of UBA, Emmanuel Nnorom, Executive Director (ED) Finance of the Bank affirmed that the 1 for 4 bonus issue being offered investors is a robust stock dividend; representing 25 percent (25%) of holdings of the Africa largest financial Institution.

However, in the Balance Sheet Information for year 2010 end of the Bank, UBA reported loans and advances of N629 billion.

While total asset grew marginally to N1.62 trillion; and balance sheet size improving by N2.27 trillion.

Meanwhile, a review of performance of the Bank in Q1 Report for the period ended March 31 2011 on the Floor of the Nigeria’s Exchange in Lagos Nigeria, shows that PAT grew from N1.557 billion in the Q1 of year 2010 compared to N3.897 billion in the review period representing a growth of 150.29%.

Profit Before Tax (PBT) increased from N3.494 billion in Q1 of year 2009 compared to N4.837 billion, showing an increase of 38.44% in the review period.

However, the Bank recorded Negative Gross Earnings growth of -16.01% in the period under review.

In reacting to the result, Nnorom affirmed that UBA have started making great strides in driving the business of the Bank in the current Financial Year.

According to him, some of the key initiatives being implemented include, aggressive loan growth; occasioned by the recent alignment of the Bank’s operating structure to help it tap into ensuing business opportunities and grow its risk assets portfolio.

“Consolidating of the Bank’s Africa operations as expansion to the African Market has started yielding positive returns, improving our deposit mix by driving for low-cost deposit generation and customer service delivery” Nnorom said.

UBA as one of Africa’s leading Banks, is offering services to more than 7.2 million customers in 726 branches across 18 African Countries.