The United Bank for Africa Plc has announced its audited results for the financial year ended December 31, 2017, showing significant growth in the contribution and market share from its pan-African subsidiaries, among other positive trends in the financial performance.
The pan-African financial institution’s audited results showed that its gross earnings grew substantially from N314 billion as at the end of 2016 to N462 billion by 2017, up by 20 per cent.
The Group delivered a strong 16 per cent year-on-year growth in profit before tax of N105 billion, compared to N90.6 billion in the 2016 financial year. Profit after Tax also leaped to N78.6 billion, an 8.8 per cent year-on-year growth compared to N72.3 billion in 2016.
The bank’s subsidiaries outside Nigeria contributed a third of the Group’s top-line and 45 per cent of the profit for the year, a remarkable improvement from the 31 per cent contribution made by the ex-Nigeria offices in 2016.
This, according to market analysts, affirms the success of the bank’s expansion strategy, with a target of 50 per cent contributions by
2020.
The bank’s Operating Income grew to N326.6 billion, a 20.6 per cent increase compared to N270.9 billion recorded in 2016.
This, according to analysts, affirms the capacity of the Group to deliver strong performance through varying economic cycles and a challenging business environment.
The audited results also showed that UBA’s Total Assets peaked at N4.07 trillion, translating into 16.1 per cent year-on-year growth from the figure of N3.50 trillion recorded as at 2016 financial year. In the 2017 financial year, the bank’s net loans achieved a prudent 9.7 per cent growth at N1.65 trillion, while customer deposits grew to N2.73 trillion, representing 10 per cent YoY growth on N2.49 trillion recorded in 2016 financial year.
Reflecting a strong internal capital generation, the bank’s shareholders’ funds also soared 18.2 per cent to N529.4 billion in the 2017 financial year.
Commenting on the result, the Group Managing Director, UBA, Mr. Kennedy Uzoka, said, “The results underline the success of our strategy of expanding across Africa, diversifying revenues and capturing the broader business opportunities inherent in Africa’s growth. The results reinforce the sustainability of our business model and the capacity to deliver superior long-term return to shareholders, as the economic and business environment improves.
“In 2017, we made strong progress in our strategic initiative of dominating transaction banking across all our countries of operation, gaining market share in all lines of our business.
Even as the non-oil sectors of our largest country of operation, Nigeria, remained relatively weak, we still grew earnings by 20 per cent to N462 billion, a third of which is attributable to non-funded income.”