By Opeyemi Issa InvestAdvocate
Lagos (INVESTADVOCATE)-United Bank for Africa Plc (UBA) Wednesday reported a N16 billion Profit Before Tax (PBT) in its First Quarter (Q1) Ended March 31 2012.
To post this result, the Bank’s PBT grew from N4.8 billion in Q1 of 2011 compared to N16 billion in the same period of 2012; indicating a Profit of 200 percent (200%).
The UBA Q1 Result released to the Nigerian Stock Exchange (NSE) in Lagos Nigeria and obtained by www.investadvocateng.com shows that the N16 billion Profit recorded in the review period surpassed the Bank’s Profit Forecast of N15.1 billion announced earlier in the year.
A further review of the Result of the Bank shows that Gross Earnings increased from N40.5 billion in Q1 of 2011 compared to N53.9 billion in the review period of year 2012; showing a 33% increase.
A Statement by the Bank on the Q1 Result 2012 affirmed that Cost to Income Ratio dropped to 65% from 77.7% in 2011 as the benefits of the Group’s Global Shared Services Centre and other Cost Control Measures kick in.
“With solid Capital Adequacy and Liquidity Ratios of 22.94% and 57.02% respectively, UBA capped the First Quarter performance on a strong note” the Statement said.
In the same vein, UBA released its Audited Report for the Period Ended December 31 2011 in line with the FebruaruyProfit 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 (AMCON).
“In spite of that, Balance Sheet growth in 2011 was quite impressive with Total Assets increasing to N1.94 trillion, a growth of 20% from the N1.62 trillion achieved in 2010” the Bank said.
UBA had earlier issued a Profit Warning in February, however, its Balance Sheet growth in 2011 showed its Total Assets increasing to N1.94 trillion, representing a growth of 20% from N1.62 trillion recorded in year 2010 end.
UBA said that the increased borrowings and deposits, which grew by 134% and 14% respectively also contributed to growth in the Bank’s Balance Sheet in the review period.
“With a loan to deposit ratio of 48% and a strong Capital Adequacy Ratio, the UBA Group has significant capacity for credit creation in the coming Quarters” the Statement said.
In his reaction to the Q1 Result, Phillips Oduoza, Group Managing Director/Chief Executive Officer (GMD/CEO) of UBA said the financial performance of the Bank in the First Quarter of 2012; attests to the resilience of the Group and a turnaround in its business performance; following the clean up of its 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 shareholders value by unlocking existing potientials in the Bank, leveraging on its huge resource base and vantage position in Africa, as unique sources of competitive advantage” Oduoza said.
In the same vein, while commenting on the Q1 Result of the Bank, Ugo Nwaghodoh, Chief Finance Officer (CFO) said the First Quarter Result reaffirms UBA’s strong earnings capacity. ” The underlying fundamentals of our business remains very strong, and we shall continue to optimise the Balance Sheet for even stronger earnings. This year will also see significant contributions from our expansive solid African franchise” Nwaghodoh said.
Meanwhile the Bank has proposed a 1 for 50 Bonus reward to its shareholders for the year 2011 end. The Qualification Date is April 30 2012 and Closure Date of Register of Members who would benefit from the Bonus reward is May 02-04 2012.
While Annual General Meeting (AGM) has been scheduled for May 18 2012.
