The United Bank for Africa Plc has announced its audited 2018 half-year financial results, showing strong growth across key performance metrics as well as significant contributions from its African subsidiaries.

Despite declining yield environment in two core markets, Nigeria and Ghana, the pan Africa financial institution delivered double-digit growth in gross earnings, as it recorded a 16 per cent year-on-year rise in top-line to N258 billion, compared to N223 billion recorded in the corresponding period of 2017.

According to the report filed with the Nigerian Stock Exchange on Wednesday, UBA, reported strong growth in operating income at N168.5 billion, compared to N161.8 billion in the first half of 2017, an increase of 4.1 per cent. Notwithstanding the inflation-induced cost pressure in the period, UBA finished the first half of the year strongly, with a Profit Before Tax of N58.1 billion. The Profit After Tax also improved to N43.8 billion, a 3.4 per cent growth compared to N42.3 billion achieved in the corresponding period of 2017. The first half of the year profit translated to pre-tax and post-tax return on average equity of 23 per cent and 17 per cent respectively.

In the first six months of the year, the bank’s Total Assets grew 4.9 per cent to N4.27 trillion and Customer Deposits rose by 6.1 per cent to N2.90 trillion, compared to N2.73 trillion as at December 2017. The Group’s Shareholders’ Funds remained strong at N496.3 billion, even as implementation of IFRS 9 impacted the total equity of the bank and its peers.

In line with its culture of paying both interim and final cash dividend, the board of directors of UBA Plc declared an interim dividend of N0.20 per share for every ordinary share of N0.50 each held on the qualification date – Wednesday, September 05, 2018.

Commenting on the results, the Group Managing Director/CEO, United Bank for Africa Plc (UBA), Kennedy Uzoka, said: “Our performance in the first half the year reflects the resilience of our business model and strategies. Despite declining yields in two core markets, Nigeria and Ghana, we delivered double-digit growth in gross earnings. Our performance demonstrates the success of our digital banking
initiatives and broader Customer-First strategies”

“We are integrating banking to our customers’ lifestyle, simplifying processes for routine transactions and driving financial inclusion by making banking services accessible and affordable. We are creating opportunities for wealth creation and economic progress, as we empower our customers through innovative platforms and solutions that support their personal and business growth,” Uzoka said.

“Our enhanced asset-liability management strategies improved asset yield and grew interest income by 21 per cent despite prevailing yield environment. Our re-engineered sales structure provided the impetus for renewed retail deposit growth. I am particularly pleased by the 24 per cent year-to-date growth in retail savings and current account deposits, underpining the increasing penetration of our digital offerings and the Group’s overarching goal of democratizing banking across Africa. We improved net interest margin to 7.4 per cent in line

with our 2018 target, notwithstanding strong competition for wholesale deposits and the impact of rising global interest rates on our foreign currency funding,” he concluded

Also speaking on UBA’s financial performance and position, the Group CFO, Ugo Nwaghodoh, said; “We finished the first half of the year in a stronger position and we are optimistic on the future of our business.

Amidst economic recovery and uncertainties in Nigeria, our largest market, we grew net interest income and operating income by 9.6 per cent and 4.1 per cent respectively. We doubled revenue from trade services and grew e-banking income by 24 per cent, a testament to our market share gain, which is driven by innovative offerings. Our foreign operations contributed 40 per cent of Group’s profit, underlining the benefit of our Pan-African strategy.