United Bank for Africa (UBA) Plc released its audited financial results for the first half of the year ending
June 2015 beating the expectations of financial analysts.
10 •
The Lion King
• July - September 2015
T
he results, released September 03, 2015, show strong
growth in earnings and profits, as the Bank continued
to benefit from its determination to provide value to
its large customer base in Nigeria, and across Africa. The
results also show that the bank’s increasingly important pan
African network, now contributes over 23% of profit after tax.
Significant improvement was also recorded in operational
efficiency even as the bank maintained a healthy loan
book, a tribute to both its risk management and to the
robustness of its clients’ businesses, with non-performing ratio
at just 1.8% of total loans granted, one of the lowest in the
banking industry.
Highlights of the results
Income Statement
In Nigerian Naira
H1 2015 H1 2014 %Change
Gross Earnings
166.9 billion 138.2 billion 21%
Net Operating Income 108.7 billion 90 billion
21%
Operating Expenses
69.6 billion
61.1 billion 14%
Profit Before Tax
39 billion
28.9 billion 35%
Profit After Tax
32 billion
22.9 billion 40%
Cost to Income Ratio 64%
67.9%
Return on Average
Equity
22.3%
19%
Balance Sheet Figures
In Nigerian Naira
H1 2015
H1 2014 %Change
Total Assets
2.93 trillion
2.76 trillion 6%
Loans and Advances
1.16 trillion
1.07 trillion 9%
Customer Deposits
2.23 trillion
2.17 trillion 3%
Shareholder Funds
307.6 billion
265.4 billion 16%
UBA’s 40% Profit Rise
Outperforms Market
Expectations
Milestone
|
UBA’s 40% Profit Rise Outperforms Market Expectations
What UBA’s GMD/CEO said about the bank’s
performance
“This result has been achieved in spite of a challenging
operating environment. Our business strategy has proved
to be resilient, balancing prudence, with an ability to signifi-
cantly grow bottom line and continue to focus on operating
effectiveness. We look forward to continuing to support our
customers and working with them to achieve financial suc-
cess for them and the wider Nigerian and African econo-
mies,” said Phillips Oduoza, Group Managing Director/CEO.
Financial Analysts Comments
CSL Stockbrokers
Analysts at CSL stockbrokers while reaffirming their “Buy”
rating on UBA stocks and a target price of N7.20, noted that
based on the half year results, UBA is likely to surpass the cur-
rent profit and earnings forecasts.
Chapel Hill Denham
Analysts from Chapel Hill Denham were of the view that
some key strategic decisions taken by UBA in the last few
months had brought impressive results, adding that this was
evident from the increased earnings reported by the bank.
“We like the aggressive stance UBA took on expanding its
loan book, which appreciated by 8.5% since the beginning
of the year. We maintain our earnings forecasts, with a tar-
get price of N6.59 and BUY rating on UBA.”
Renaissance Capital
Analysts at Renaissance Capital noted “UBA’s numbers
read well versus our estimates. We note that profit before
tax growth in the second quarter of 2015 was supported
by a decent topline growth, and a decline in impairment
charges, down by 51%.” The investment banking firm reaf-
firmed their “Buy” rating on UBA stock with a target price of
N8 per share.
