By Yakubu LAAH InvestAdvocate

Lagos (INVESTADVOCATE)-The United Bank for Africa Plc (UBA) Thursday said it has recorded 19 percent (19%) growth in its African operations.

This is contained in a Statement by Charles Aigbe, Divisional Head, Marketing & Corporate Relations Directorate of the Bank and made available to InvestAdvocate in Lagos Nigeria.

“African operations of the United Bank for Africa (UBA) Plc contributed significantly to full year 2012 revenues an indication that the bank is reaping returns from its spread in the rest of Africa.” The statement said.

According to UBA, its 18 African subsidiaries contributed N42 billion to the Group’s N220 billion revenues in the bank’s full year financial results earlier released to the Nigerian Stock Exchange (NSE).

“Analysis of the revenue contribution from the subsidiaries partly helped drive the significant 34% rise in the Group’s 2012 earnings from its 2011 levels.” The Statement affirmed.

Earlier, Phillips Oduoza, Group Managing Director (GMD) of UBA had disclosed to stockbrokers and investors at the Nigeria’s Exchange that the bank has continued to record increasing contributions from the subsidiaries to the Group’s bottom-line.

A breakdown of the performance of UBA’s African subsidiaries according to the bank, UBA Senegal specifically posted a significant 168% in earnings to N3.5 billion in December 2012 from N1.31 billion in December 2011.

According to bank, UBA Senegals profit before tax (PBT) also rose by a 178% to N1.27 billion from N455 million within the same period helped by the fact that management was able to hold down growth in operating expenses at just 3.9% which resulted in most of the earnings translating into profit for the bank.

UBA further affirmed that a similar feat was achieved in Sierra Leone where the bank made steady and significant strides in the growth of its profits and total assets.

UBA said its Sierra Leonean subsidiary posted a pre-tax profit of 8. 2 Billion Leones, compared with 2.4 Billion Leones in 2011, indicating a growth of 239%.

While profit-after-tax (PAT) grew by 240% from 1.7 Billion Leones in 2011 to 5.8 Billion Leones in 2012.

“There was also a very huge growth in total assets of 213% from December 2011 to the same period last year. The bank’s total assets industry ranking of 10th in December 2011 inched up to 6th in December 2012 with a growth of 167B Leones within the two periods. With this performance, UBA Sierra Leone has consolidated its position as one of the most profitable banks in this country, having achieved a growth in its profits far in excess of 200% in one year.” UBA said.

The Statement said the group’s impressive performance is anchored on several cost-efficient initiatives and a strong risk management framework that optimised the use of resources, and which has resulted in UBA Sierra Leone becoming one of the best banks in cost-income and NPL ratios in Sierra Leone, both of which were 49% and 1.6% respectively by 2012 year-end.

“The period under review also saw significant improvement in the bank’s return on equity which increased from 7% in 2011 to 19% last year against industry ROE of 8%” UBA affirmed.

The bank said increasing contribution of subsidiaries to UBA Plc’s revenue base is an affirmation of the commendable diversification of the bank’s revenue base across countries. “It implies that UBA’s country risk exposure to Nigeria is significantly now less.” The Statement said.

According to the Statement, UBA Senegal also witnessed a significant expansion in its market share in that country with its deposit base rising a significant 15% to close the year at N27 billion contributing an average of 84% of the bank’s asset base.

The bank said its fast pace growth is backed by a strong capital base with a capital adequacy ratio of 60%, well above both domestic and international requirements.

UBA also said its loan to deposit ratio at 33.2% also means that it is in a strong position to further expand its lending to the local economy in Senegal.

The Statement said UBA’s presence in certain countries like Mozambique where the world’s largest gas field was recently discovered will have a positive impact on its future earnings. “It positions the UBA Group to partake in the expected fast growth that Mozambique will start experiencing because of the gas discovery making its presence in that country strategic.” The Statement said.