UBA records strong performance from African subsidiaries, posts N78.6 billion profit in 2018

The United Bank for Africa Plc (UBA) raked in N78.6 billion as profit as seen its audited 2018 Financial Results with strong contribution from other African subsidiaries.

An outdoor advertisement displaying UBA in Lagos (Invent Media)

According to the financial statements, the bank's gross earnings grew by 7% to N494 billion compared to N461.6 billion recorded in 2017, while its total assets also grew 19.7 % to an unprecedented N4.9 trillion.

Commenting on the result, the Group Managing Director/CEO, Kennedy Uzoka, noted that "the year 2018 was important for the group, as it gained further market share in many countries of operation. More so, the CEO was excited at strategic achievements made in the year, including the start of wholesale banking operations in London, as it seeks to leverage the group’s unique network across Africa. UBA also opened its 20th African operation.

“Defying the relatively weak economic growth in Africa, earnings were positive and we grew our balance sheet by 20%, driven by the 23% growth in our deposit funding. In a period of economic uncertainty, we have focused on retail deposit mobilisation, with exciting results. We recorded a 48% year-on-year growth in retail deposits and improved our CASA ratio to 77%, optimising our funding mix, which will enhance our net interest margin (NIM), over the medium term,” Uzoka said.

Here are a few things we observed from the financial statement:

  • UBA recorded profit before tax of N106.7 billion
  • The bank raked N6.2 million from Account maintenance fee
  • Electronic banking income N27.9 million
  • Commissions on transactional services N13 million
  • Operating Expenses grew by 4.1% to N197.3 billion, compared to N189.7 billion in 2017
  • Net loans recorded 3.9 % growth to N1.72 trillion while Customer Deposits increased by 22.5% to N3.3 trillion.
  • The bank's return on average equity stands at 8.9%, below management's target of 18%.

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