United Bank for Africa (UBA) Plc has recorded growth at the end of third quarter financial year, as its profit increased by 32.30 per cent.
The bank result released at the Nigerian Stock Exchange yesterday showed that profit after tax rose from N61.698 billion achieved in the preceding year to N81.628 billion while profit before tax surged by 24.17 per cent to N98.233 billion from N79.111 billion recorded in the comparative period of last year.
Analysis of the bank result showed that gross earnings rose from N375.335 billion achieved in the comparable period., interest income added 10.77 per cent to N297.903 billion from N268.937 billion in 2018, interest expenses also went up by 17.55 per cent to N138.989 billion from N118.239 billion in 2018, bringing net interest income to N158.914 billion against N150.698 billion reported the previous year.
Fee and commission income added 24.90 per cent to N86.530 billion from N68.756 billion made the same period in 2018, while fee and commission expenses grew by 27.49 PR cent to N23.236 billion from.N18.226 billion while Net fee and commission income rose to N63.294 billion compared with N50.530 billion.
Total non interest income moved up from N87.666 billion to N107.080 billion while
Net impairment loss on loans and receivable fell by 37.58 per cent to N6.66 billion from N10.674 billion.
Earnings Per Share rose to N2.32 kobo 1.72 kobo. Financial analysts encouraged income investors in UBA to hold position, adding that there is the possibility of the bank paying N1 dividend at the end this year financial year. This according to them will change investing public perception of the bank.
Despite the double digit inflation rate in Nigeria(its largest market) coupled with uncertainties in the business environment in Nigeria and in some countries in the rest of Africa, UBA’s curtailed operating expenses only increased by 8.4 percent and this was largely due to regulatory costs.
