United Bank for Africa (UBA) Plc has published its audited its financial results for the first half of 2021 which shows that profit before tax rose by 33.4 per cent to N76.2 billion from the N57.1 billion recorded in the same period of 2020.
This translates to an annualised return on average equity of 17.5 per cent from 14.4 per cent in the previous year.
In a statement entitled ‘UBA records 33 per cent YoY profit growth, declares 20k per share interim dividend’, the bank also stated that profit after tax stood at N60.6 billion, representing a significant rise by 36.3 per cent, compared with the N44.4 billion recorded during the corresponding period in 2020.
The result also showed that gross earnings rose to N316 billion from N300.6 billion in half-year 2020.
Similarly, gross earnings grew to N316 billion, which was a five per cent increase from the N300.6 billion recorded as in June 2020.
It further stated that of June 30, 2021, the group’s total assets crossed the N8 trillion mark, rising to N8.3 trillion from N7.7 trillion at the end of the 2020 financial year.
Its customer deposit also crossed the N6 trillion mark, growing by 7.4 per cent to N6.1 trillion in the period under review, compared with N5.7 trillion as of December 2020.
Furthermore, the group’s shareholders’ funds was N752.5 billion from N724.1 billion in December 2020, reflecting its strong capacity for internal capital generation.
In line with the bank’s culture of paying both interim and final cash dividend, the board of directors declared an interim dividend of 20 kobo per share for every ordinary share of 50 kobo each, held by its shareholders.
Commenting on the results, the bank’s group managing director/chief executive officer, Mr. Kennedy Uzoka, said the half-year performance exceeded expectations.
“This has been a strong first half for us, as global economic recovery exceeded expectations, creating a positive rub-off on consumer and corporate confidence, savings and investment activities.
“We saw this positively impact our business, as we continued to leverage our key strategic levers – people, process and technology, and our customer first philosophy, to revolutionise customer experience at UBA,” he said.
He added that the bank’s investment in the rest of Africa (excluding Nigeria) continued to yield good results for the group.
“The benefits of pan-African business diversification accruing to the Group is once again evident, with gross earnings and interest income growth of 5.1 per cent and 8.3 per cent respectively, despite the low yield environment in our largest market, Nigeria.
“We are making remarkable progress on our strategy that is progressively positioning UBA as the bank of choice on the continent, driven by our emphasis on tech-led innovation and best customer experience,” he added.
He also pointed out that the recognised the far-reaching effects of the pandemic on businesses globally and remained focused on its promise to always provide our customers with the best banking experiences possible.
“Our first half 2021 (H1 2021) performance reflects our progressive efforts in building on the strong momentum that we started the year with. As a purpose-driven organisation, we remain resolute in our drive for sustained growth in customer acquisition, transaction volumes and balance sheet, as we consolidate our ‘Africa’s Global Bank’ market position in the years ahead, uplifting livelihoods across the continent,” he said.