UBA Benefits from Tech Investment, Pays N27.359 Billion in Dividends to Shareholders

At its first virtually held Annual General Meeting, United Bank for Africa Plc (UBA) has expressed satisfaction over its investments in the area of technology.

According to the Group Managing Director/CEO of United Bank for Africa Plc, Mr. Kennedy Uzoka, yesterday said all the investments made by bank over the years in the area of technology are now yielding positive results.

Uzoka said the pan-African bank operating in 20 African countries and also in the United Kingdom, the United States and France, was prepared for all situation.

“When we learnt about this pandemic, we immediately activated our business continuity plan. We will continually do business in a way to ensure that customers do not have to physically be in the bank. We are set to take our business to the customers wherever they are and however they want it. Our commitment to our loyal shareholders is amply demonstrated in our progressive dividend policy,” he said.

In his address, the Group Chairman, UBA, Mr. Tony Elumelu, said their commitment to improve lives in Africa remains a long-term one, hence they are assisting governments in Africa to curb this pandemic and help sustain employment across the continent.

“I want to also thank the UBA Board of Directors, who have been responsive in this time of crisis, as the group donates $14 million to assist governments to fight the COVID-19 pandemic in Nigeria and Africa,” he said.

READ ALSO: UBA Shells Out N5billion to Support Coronavirus Fight in Africa

Elumelu, thanked executive management and members of staff and assured shareholders, that despite the pandemic, UBA had delivered an impressive performance in its just released first quarter results.

 

Following the historic virtual Annual General Meeting (AGM) Wednesday, which saw over 270, 000 shareholders in attendance, UBA increased dividends by 20% to a total of N1 per every 50k share for the financial year ended December 31, 2019, despite the uncertain times, and paid N27.359 billion to 300, 000 shareholders.

The Bank last week posted its first-quarter 2020 earnings report which topped analyst estimates. Profit after tax rose 5% to N30.101 billion from N28.09 billion reported in Q1 2019. Profit before Tax increased 8% from 30-1 billion Q1 2019 to N32.7 billion while net interest income surged 12.6% to N65.417 billion from N58.075 billion reported in Q1 2019.

Shareholders at the meeting commended the board of directors and management for the proactive role that the Group has been playing in helping to lessen the negative effects of the coronavirus pandemic across the African continent and its robust financial performance, despite a difficult macroeconomic outlook.

Speaking also, President of Association for the Advancement of the Rights of Nigeria Shareholders, Dr Faruk Umar commended the bank for declaring dividends of N34.19 billion for the financial year ended December 31, 2019.

“I am also happy that you fulfilled the promise you made at the AGM last year to pay dividends in Naira and not kobo, by paying N1.00 per 50 kobo shares to shareholders, in this difficult time. We have seen the first quarter results, and we are particularly happy about the performance of our subsidiaries across Africa.”