LAGOS, Nigeria, March 5, 2022: African bank, United Bank for Africa (UBA) Plc, has released its audited results for the full fiscal year ended December 31, 2021, reporting impressive performance in key financial metrics.
The 2021 financial result filed by the bank on the Nigerian Stock Exchange (NSE) on March 4, 2022, showed gross profit increased significantly to N660.2 billion ($1.6 billion), a 7% increase from 616.8 billion naira ($1.5 billion) recorded at the end of FY2020.
Total assets increased by 11% to a record 8.5 trillion naira ($20.1 billion) in the reporting year, from 7.7 trillion naira ($18.1 billion). dollars) in 2020, allowing the bank’s assets to cross the 8 trillion naira mark for the first time.
Despite enormous business challenges and slow economic recovery in most of its countries of operations, UBA’s pre-tax profit was impressive with growth of 20.3% to N153.1 billion (N373.8 million). dollars), compared to 127.3 billion naira (310.8 million dollars) at the end of the financial year 2020; while profit after tax increased by 8.7% to 118.7 billion naira ($289.9 million) in 2021 from 109.2 billion naira ($266.6 million) recorded in the year former.
Similarly, net loans increased by 7.7% to N2.8 trillion ($6.7 billion), while customer deposits increased by 12.2% to N6.4 trillion. naira ($15.0 billion), up from 5.7 trillion naira ($13.4 billion) in the corresponding period of 2020, reflecting increased customer confidence, improved customer experience, program successes transformation of the current activities and the strengthening of the retail banking sector.
In the reporting year, the bank’s operating profit increased by 10% to N443 billion ($1.1 billion) from N403 billion ($984.3 million). ) in the prior fiscal year, while operating expenses ended the period at N279 billion ($681.4 million).
In its usual tradition of rewarding its shareholders, the bank has proposed a final dividend of 80 kobo for each 50 kobo ordinary share for the financial year ended December 31, 2021. The final dividend which is subject to shareholder affirmation at its Annual General Meeting will bring the total dividend for the year to N1 since the bank had paid an interim dividend of 20 kobo earlier this year…
Speaking on the result, Group Chief Executive Kennedy Uzoka said that despite the tight and difficult operating environment, UBA continues to deliver significant performance.
He said: “The year 2021 can be described as a year of global recovery; economies around the world have begun to see recovery and the beginnings of growth as supply chains recover from the devastating disruptions suffered in 2020. As a result, UBA recorded remarkable revenue growth of 7% business, at 660 billion naira (1.56 billion USD), and profit before tax (PBT) of 153.1 billion naira, up 20.3% compared to the previous year.
Net loans and advances rose 7.7% to N2.8 trillion, with exposure mainly to resilient economic sectors including oil and gas, agriculture and manufacturing. Customer deposits increased by 12.2%, crossing the 6 trillion naira mark, to reach 6.4 trillion naira. »
The Group CEO explained that the quality of UBA’s portfolio as well as the strength of the bank’s credit risk management frameworks and policies remain the foundation of the positive results the bank has recorded over the years. He adds that the current performance highlights UBA’s customer focus and its positive effect on its key strategic levers – people, process and technology.
“I am particularly excited about our ongoing business transformation program, which is designed to improve the bank’s process agility, service delivery and customer experience.” We are also making investments important in cutting-edge technology and cybersecurity, to maintain innovative digital banking offerings above the norm, while equipping and re-tooling our human resources to compete and win in a rapidly changing landscape. to continue to achieve respectable mid- to long-term earnings growth,” Mr. Uzoka said.
Ugo Nwaghodoh, UBA Group Chief Financial Officer, who echoed the Group Chief Executive’s comments, said, once again, that the bank has shown resilience. It achieved significant growth and expanded its balance sheet despite the slow economic recovery that characterized 2021.
“Through active and diligent asset and liability management, the bank was able to protect its net interest margin and achieved a downward moderation in the cost of funds (CoF) of 70 basis points, to 2.2 %, compared to 2.9% the previous year”.
According to him, the group’s capital adequacy ratio, at 24.9%, was well above the regulatory minimum required and reflects a strong capacity for business growth. “The Group’s non-performing loan ratio further improved from 4.7% to 3.6% at the end of 2020. This demonstrates the quality of UBA’s loan portfolio, although the bank remains committed to lower the cost/income ratio, which stood at 63.0% at the end of the year. »
Nwaghodoh added that the bank has made further progress in growing its business and capturing market share across its businesses in the rest of Africa, with the region accounting for 63.2% of the profitability of the Group, compared to 55.4% in 2020; loans and advances as well as deposits in the region also increased by 14.5% and 27.3% respectively compared to the previous year.
Concluding his remarks, the CFO said, “We are aware of the changing competitive landscape and are proactively positioning ourselves to consistently achieve our strategic objectives and our commitment to shareholders. »
United Bank for Africa Plc is a pan-African bank, providing banking services to over twenty-five million customers, in over 1,000 branches in 20 African countries. With operations in the United States of America, the United Kingdom and France, and more recently in the United Arab Emirates, UBA facilitates the connection between people and businesses across Africa through retail banking, commercial and corporate, innovative cross-border payments and remittances, trade finance and additional banking services.