UBA posts N29.5bn profit

United Bank for Africa (UBA) has announced a profit before tax and exceptional items totaling N29.5 billion for the financial year ended September 30, 2007. The figure showed an increase of 115 percent compared with N12.8 billion recorded in 2006 (18 months period).

Also, the directors have pushed dividends to shareholders up by 20 percent to N1.20 per share this year. A cursory analysis of the result shows the bank setting industry records in most financial indices.
According to the bank’s audited accounts presented to the Nigerian Stock Exchange (NSE), the Bank’s balance sheet size stood at N1.64trillion, up 56percent from last year’s figure of N1.05trillion. The bank’s deposit base also grew from N776-billion to N905-billion during the same period.

"Besides being the largest bank, UBA’s results show that it is also the most profitable bank in the country. Profits before tax and exceptional items grew (115%) to N29.5-billion from N12.8-billion in 2006 (18 months period)".
A statement from the bank indicated that the figures were underpinned by a marked improvement in the operational efficiency of the company that saw improvement in the cost to income ratio from 80 percent in 2006 to 69 percent in 2007.

On the back of these impressive and results, the directors of the bank are proposing a dividend of N13.79-billion to be distributed to the shareholders of the bank at N1.20 for every share held.
This is 20% higher than the N1.00 dividend the bank promised during its just concluded public offer and again emphasizes the management’s objective of enhancing value and returns to shareholders. Investors who participated in the bank’s public offer are also eligible to receive the declared dividend.

UBA is the largest quoted company in the country with a market capitalisation of N650.79bn as at November 26, 2007. It serves its six million Nigerian customers from a network of over 700 branches and 900 ATMs, striving to ensure that the benefits of the banking industry consolidation reach the average Nigerian.
The Bank had acquired the private sector deposits of the liquidated Trade bank, City Express bank, Metropolitan bank and Afex bank, which has helped bring much needed relief to depositors of these institutions and is part of the bank’s efforts to lead the way in increasing the public’s confidence in the nation’s burgeoning financial sector.

Officials of the bank said that its medium term aspiration is to be the leading financial services franchise in the continent and a significant player on the global stage. The bank has a presence in six African countries including Ghana, Uganda, Sierra Leone, Liberia, Cote d’ Ivoire and Cameroon. It is the only Nigerian bank with a branch in the United States of America. Only last month, it acquired a 49% stake in the London-based and FSA-regulated Afrinvest which it is currently restructuring to be the arrowhead of its European distributive operations.