By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)-One of Nigeria and Africa’s leading lenders, United Bank for Africa Plc (UBA) has announced that its fourth quarter gross earnings in 2013 jumped 20.2 percent (20.2%) thanks to animproved growth drive, sustained operational efficiency and enhanced productivity.
UBA earned N264.687 in 2013 audited year end compared to N220.129 billion last year and that’s up N44.558 billion; indicating an increase of 20.2%.
The 20.2% growth in gross earnings UBA said was largely driven by a growth of 40.4% in loans and advances as well as a 25% growth in the bank’s total deposits.
The bank said its loan-to-deposit ratio improved from 38.7% to 44.3% and the remarkable growth in loans and advances, especially in the last quarter of the year, puts it in a vantage position for continued revenue growth in the coming years.
UBA said in addition to achieving this growth, it also enhanced its operational efficiency and productivity with the cost-to-income ratio improving by 4% from 64.8% to 60.9% which it said was largely through prudent cost management policies, enhanced efficiency of the Bank’s network and the impact of other productivity initiatives.
The Bank declared a post- tax- profit N56.06 billion, compared with N52.01 billion, indicating a slight increase of 7.8% in the review period. This represents a return on equity of 21.8% and UBA ending the year with a total balance sheet size of N2.64 trillion and a total deposit base of N2.22 trillion.
However, pre-tax profit was N46.60 billion, compared with N54.77 billion, showing a decrease of 14.9%.
In a statement, Phillips Oduoza, group managing director/CEO, UBA Plc said: “UBA’s gross earnings for the year is quite impressive, with positive contributions from all our businesses.
Our bank achieved a good result despite a challenging operating environment, demonstrating the strength and resilience of our people and their dedication to implementing our growth plans in 2013.”
Following the impressive performance, the bank has proposed a dividend of 50k per share which further attests to its unflinching commitment to a consistent return to shareholders.
According to UBA, qualification date for the pproposed 50 kobo per share dividend is April 07, 2014 and closure of register is April 14, 2014; while the payment date has been scheduled for April 28, 2014.
Though shares were down -0.43% as it opened N7.00 kobo and N6.97 kobo, losing -0.03 kobo in after-hours trading on Friday.
