A Review of the Nigerian Energy Industry

UBA grows 9 months profit by 44% to N48.6bn

16 October 2015, Lagos – United Bank for Africa (UBA) Plc on Thursday reported its financial results for the nine months September 30, 2015, showing a rise of 44 per cent in profit after tax to N48.6 billion.

Phillips Oduoza, GMD, UBA
Mr. Phillips Oduoza, GMD, UBA

UBA recorded net operating income (NOI) N167.4 billion, while cost to income ratio remained within management’s guidance of 65 per cent, compared to 68.7 per cent in the corresponding period of 2014.

The financial institution closed the third quarter with total assets of N2.87 trillion, loan book of N1.01 trillion and a deposit base of N2.18 trillion.

UBA maintained a non-performing loan ratio of 2.1 per cent and 0.6 per cent cost of risk.

The Group Managing Director/CEO of UBA,  Mr. Phillips Oduoza attributed the impressive performance to enhanced balance sheet efficiency and improving extraction of value from the Bank’s channels.

“We have also maintained our discipline on how, where and with whom we do business and I am happy with the results, as reflected in our earnings and asset quality. We have continued to sustain our financial performance in 2015, leveraging our unique pan-African platform and the strength of our committed work force in gaining competitive edge in the market place,” he said.

Highlighting some of the significant achievements in the third quarter,  Oduoza  said  that UBA led a consortium of local banks to facilitate a $1.2 billion syndicated facility for the national oil company in Nigeria, NNPC, further reflecting the strength of the bank.

Speaking in the same vein,  the Group Chief Financial Official, Ugo Nwaghodoh noted that the bank’s entrepreneurial persistence continues to yield results as the Group increasingly extracts synergy opportunities across its African network.

“Our business in Africa, excluding Nigeria, contributed a quarter of our profit after tax in the period; a resounding benefit of our geographic diversification,” Nwaghodoh said.
He assured that the bank is encouraged by the improving performance metrics, saying  “we will not relent on our commitment to achieving desired scale, size and profitability in all our chosen markets.”

He explained that the Group’s balance sheet remains strong, with a 20% capital adequacy ratio and 49% liquidity ratio, noting that UBA will continue to balance the quest for earnings and growth, with the best sustainability principles.


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