The Nation Newspaper

Tag: pre-tax profit

  • UBA grows pre-tax profit to N105b in 2017

    • Declares N29b dividend

    United Bank for Africa (UBA) Plc recorded a well-rounded performance in 2017 with considerable growths in the top-line and the bottom-line. Profit before tax rose by 16 per cent to N105 billion in 2017, sustaining year-on-year growth that had seen UBA as one of the best performing stocks at the stock market.

    Key extracts of the audited report and accounts of UBA for the year ended December 31, 2017 released at the weekend at the Nigerian Stock Exchange (NSE) showed that gross earnings rose by 20 per cent while pre and post tax profits grew by 16 per cent and 8.8 per cent respectively.

    Market analysts praised what they described as positively surprising performance of the bank.

    “Given the strong set of results, we expect to see upward revisions to consensus 2018 estimated profit before tax forecast and a positive reaction from the market,” FBNQuest, the investment banking arm of FBN Holdings, stated in its first reaction to the UBA results.

    “Overall, we find UBA’s performance fair, as key line items – particularly the gross earnings and profit after tax – showed time-relative improvements, and broadly in line with expectations,” Cordros Capital stated.

    The report showed significant growth in the contribution and market share from UBA’s pan-African subsidiaries. Gross earnings rose to N462 billion in 2017 as against N314 billion recorded in 2016. Profit before tax increased from N90.6 billion to N105 billion while profit after tax rose from N72.3 billion in 2016 to N78.6 billion in 2017.

    The bank’s subsidiaries outside Nigeria contributed a third of the group’s top-line and 45 per cent of the profit for the year, a remarkable improvement from 31 per cent contribution made by the ex-Nigeria offices in 2016. This, according to market analysts affirms the success of the bank’s expansion strategy, with target of 50 per cent contributions by 2020.

    The bank’s operating Income grew to N326.6 billion, a 20.6 per cent increase compared to N270.9 billion recorded in 2016. This, according to analysts, affirms the capacity of the group to deliver strong performance through varying economic cycles and challenging business environment.

    The report also showed that the bank’s total assets peaked at N4.07 trillion in 2017, 16.1 per cent increase on N3.50 trillion recorded in 2016. Net loans rose by 9.7 per cent growth at N1.65 trillion, while the customer deposits grew to N2.73 trillion, representing 10 per cent increase on N2.49 trillion recorded in 2016. The bank’s shareholders’ fund also increased by 18.2 per cent to N529.4 billion in 2017.

    The board of the bank has recommended payment of N29.1 billion as cash dividend for the 2017 business year, representing a dividend per share of 85 kobo. Shareholders will receive a final dividend per share of 65 kobo in addition to interim dividend of 20 kobo earlier paid after the first-half results.

    Group Managing Director, United Bank for Africa (UBA) Plc, Mr. Kennedy Uzoka, said the results underlined the success of the bank’s strategy of expanding across Africa, diversifying revenues and capturing the broader business opportunities inherent in Africa’s growth.

    “The results reinforce the sustainability of our business model and the capacity to deliver superior long-term return to shareholders, as the economic and business environment improve,” Uzoka said.

    According to him, in 2017, the bank made strong progress in its strategic initiative of dominating transaction banking across all its countries of operation, gaining market share in all lines of its business.

    He noted that while the non-oil sectors of its largest country of operation, Nigeria, remained relatively weak, the group still grew earnings by 20 per cent to N462 billion, a third of which is attributable to non-funded income.

    Group Chief Finance Officer(GCFO), United Bank for Africa (UBA) Plc, Ugo Nwaghodoh noted that the bank, in a period of high interest rates, achieved a relatively low 3.7 per cent  cost of funds, which reflects the benefit of its rich pool of stable savings and current account deposits.

    “Our core transaction banking offerings gained strong momentum, with income from these business lines growing by double digits. We remain committed to our responsible approach to balance sheet management, with focus on growing risk asset and broader balance sheet in a profitable and prudent manner,” Nwaghodoh said.

    According to the GCFO, amidst a subdued Nigerian credit market, the bank grew its loan portfolio by 10 per cent, leveraging its robust liquidity and capitalisation to support good businesses while it closed the year with a Basel II capital adequacy ratio of 19 per cent and a liquidity ratio of 50 per cent, well ahead of 15 per cent and 30 per cent regulatory requirement respectively.

    “Our disciplined approach to lending and broader risk management continues to uphold our asset quality,” Nwaghodoh said.

  • UBA grows pre-tax profit by 41% to N25.5b in Q1

    United Bank for Africa (UBA) Plc sustained a well-rounded performance in the first three months of this year as profit before tax grew by 41 per cent to N25.5 billion.
    Key extracts of the three-month earnings report for the period ended March 31, 2017 showed significant growths on key performance indices. Group gross earnings rose by 38 per cent to N101.25 billion in first quarter 2017 compared with N73.66 billion recorded in comparable period of 2016. The top-line was driven by an unprecedented 43 per cent growth in interest income. Profit before tax rose to N25.5 billion in first quarter 2017 compared with N18.1 billion in first quarter of 2016. Profit after tax increased by 32 per cent to N22.4 billion in first quarter 2017 as against N17 billion recorded in the corresponding period of last year. The group sustained its strong profitability recording an annualised 19.4 per cent Return on Average equity (RoAE).
    Group Managing Director, United Bank for Africa UBA), Mr. Kennedy Uzoka, said the performance in the first quarter strengthens the group’s optimism on economic and business recovery in Nigeria and many of its markets across Africa.
    “More importantly, this result is evidence of efficiency gains in our pricing, balance sheet management and operations,” Uzoka said.
    He noted that the group has made further progress in its consistent retail penetration, as reflected in the 12 per cent year-to-date growth in retail savings and current account deposits while the group, notwithstanding the tight interest rate environment, recorded 30 basis points reduction in cost of funds to 3.4 per cent, a positive result of the group’s customer service-led approach to low cost deposit mobilisation.
    He pointed out that low cost savings and current accounts (CASA) represent 80 per cent of the group’s deposit funding by the first quarter.
    “Our businesses outside Nigeria continued to wax stronger, contributing 35 per cent of our earnings. We remained prudent in risk asset creation growing net loans by two per cent year-to-date, as we have continued to monitor development in key sectors of the economy to take advantage of emerging bankable opportunities in due time. Albeit the structural challenges that exist in Africa, the opportunities and returns are immense and compelling. We will deepen our penetration across our chosen markets, as we diligently execute our strategies for consistent market share gain,” Uzoka said, emphasising the increasing relevance of the group’s African operations to its bottom line.

  • FCMB grows pre-tax profit by 109% to N16.3b

    FCMB grows pre-tax profit by 109% to N16.3b

    The FCMB Group Plc recorded impressive growth across key performance indicators in 2016 as the financial services group grew profit before tax by 109 per cent to N16.3 billion. The Group is the holding company for First City Monument Bank (FCMB) Limited, FCMB Capital Markets Limited, CSL Stockbrokers Limited and CSL Trustees Limited.
    Key extracts of the audited report and accounts of the Group for the year ended December 31, 2016 showed that the group demonstrated resilience against the tough operating environment. Profit before tax rose by 109 per cent to N16.3 billion in 2016 as against N7.8 billion recorded in 2015. Profit after tax also rose to N14.3 billion in 2016 as against N4.8 billion in 2015. Gross earnings rose by 16 per cent to N176.35 billion in 2016 as against N152.51 billion in 2015.
    With the improvement in the bottom-line, the board of the directors has recommended a dividend per share of 10 kobo to shareholders. This implies a dividend yield of more than 10 per cent for the group.

    Further analysis showed that non-interest income grew to N47.7 billion, an 86 per cent increase on N25.6 billion recorded in 2015. This was mainly driven by N29.3 billion in foreign exchange revaluation gains. Consistent with its value as a helpful financial institution committed to the growth of individual and business aspirations, the FCMB Group results showed an increase in credits advanced to customers last year. Loans and advances rose by 11 per cent from N593 billion in 2015 to N660 billion in 201. Total assets increased marginally by from N1.16 trillion in 2015 to N1.17 trillion in 2016.
    Also, operating expenses decreased by 2.0 per cent to N65.8 billion while non-performing loans to total loans ratio declined from 4.2 per cent in 2015 to 3.7 per cent in 2016. The group’s capital adequacy ratio stood at 16.7 per cent. However, customer deposits reduced to N658 billion from N700 billion.
    The report showed that First City Monument Bank (FCMB) Limited, the flagship of FCMB Group and the commercial and retail banking arm of the holding company, also sustained its impressive performance over the years. The bank’s net interest income grew by nine per cent from N62.8 billion in 2015 to N68.6 billion in 2016

  • KCB bank posts 18% rise in full year pre-tax profit

    KCB Bank Group has posted 8% rise in full year 2014 pre-tax profit, riding on double-digit growth in balance sheet and non-funded income and positive earnings from all subsidiaries.

    During the 12 months ending December last year, profit before tax jumped from  (Kenyan Shillings)KES 20.12 billion to KES 23.79 billion, said KCB Group Chairman, Mr. Ngeny Biwott during an Investor Briefing held at a Nairobi hotel last week.

    Biwott said the growth was buoyed by a relatively favourable macro-economic environment across the East African region.

    “During the period, the region benefited from improved macro-economic indicators with most economies posting better growth figures, reduced inflation, lower lending rates and higher remittances,” said Biwott.

    The chairman also noted that the relative political stability gave businesses headroom to expand and ring-fence growth while making way for new investments.

    “Going forward, we foresee stability across all economies where we operate despite the challenges in South Sudan,” he said.

    The Group Chairman announced that KCB will contribute 1% of its pre-tax profits, translating to KES 238 million, to the KCB Foundation. These funds will help the Foundation to support community initiatives in education, environment, enterprise development, health and humanitarian intervention for the year 2015.

    KCB Group Chief Executive Officer, Joshua Oigara attributed the impressive results to growth in loans and advances.

    “We have continually focused on investment in innovation and technology, tapping alternative channels such as KCB Mtaani agents, merchants, M-Benki, and pepea.

    He said the unique partnership between KCB and Safaricom demonstrates how large corporates can leverage on their strengths for Kenyan people to flourish.

    “This year and beyond, the Bank is planning to boost its investment in new business lines, revving up growth in its subsidiaries and expanding its foray in the cashlite economy which is billed as the next frontier for growth in the financial services sector,” he said.

    He noted that the bank already has four million customers, saying they long to grow up to ten million.

    “We hope to enhance financial inclusion to 10 million customers. If we have to dream, let us dream big,” he said.