United Bank for Africa (UBA), has recorded growth in its financial result for the year ended December 31, 2013 as its profit before tax grew to N56.058 billion . The result submitted to the Nigerian Stock Exchange (NSE) showed that the bank’s profit rose by 7.8 per cent when compared with N52.010 billion achieved in the comparative period of 2012. The bank gross earnings grew to N264.687 billion from N220.129 billion recorded in the comparative period of 2012 , showing an increase of N44.55 billion or 20.24 per cent.
The increase in gross earnings, according to the bank came mainly from significant increase in interest income which rose by 23.8 per cent to N186 billion and fee and commission based income which rose 5.1 per cent to N50.01 billion. The net interest income improved by 12.67 per cent to N103.231 billion from N91.617 billion recorded the previous year.
The total assets of the bank increased from N2.272 trillion in the corresponding period to N2.642 trillion within the period under review. Total liabilities of the group also grew from N2.080 trillion to N2.407 trillion, representing a growth of N327 billion or 15.72 per cent. The profit for the year declined by 14.90 per cent to N46.601 billion from N54.766 billion recorded in the preceding year.
The bank’s result show a significant drop in the ratio of non-Performing loans as at full year to an industry low of 1.19 per cent in 2013 compared to 1.90 per cent in full year 2012. The bank’s full year financials also show a significant drop in cost-to-income ratio to a low of 60.9 per cent in full 2013 from 64.8 per cent in full year 2012.
The UBA 2013 full year results also shows significant improvement in other key indices such as Net Interest Margin, which improved to 5.9 per cent in 2013 from 5.8 per cent in 2012, an indication that the bank is making more money from every naira lent out.
Also the bank’s liquidity ratio stood at 55 per cent, above the regulatory minimum of 25 per cent, a strong indication that UBA remains largely liquid despite the increase in the Cash Reserve Requirement (CRR) for public sector deposits to a high of 75 per cent by the Central Bank of Nigeria (CBN).
The bank’s financial results for the third quarter of 2013 put its new loan portfolio at N870.4 billion representing an increase of 26.7 per cent compared with N687.4billion it recorded in corresponding period of 2012.
The bank declared gross earnings of N188 billion, a 12.5 per cent surge from the N167.1 billion posted in the same period of last year, while interest income rose by 18.8 per cent to N133 billion from N112 billion in the preceding period.
Commenting on the result, the group, managing director/ chief executive officer of the UBA Group, Phillips Oduoza said “all our businesses contributed to the strong Gross Earnings growth.