UBA’s PBT Rises to N153 Billion, Total Assets Increases by 11% in 2021 – Report

United Bank for Africa Plc said it recorded N153bn profit for the 2021 financial year ended December 31, 2021.

This was disclosed in a statement, titled ‘UBA delivers N153bn profit, records 11 per cent balance sheet growth’, and filed by the bank with the Nigerian Exchange Group.

The statement said, “Despite the huge challenging business and slow economic recovery in most of its countries of operations, UBA’s profit before tax was impressive with a 20.3 per cent growth to N153.1bn, compared to N127.3bn at the end of the 2020 financial year; while profit after tax rose grew by 8.7 per cent to N118.7bn in 2021, compared to N109.2bn recorded the previous year.”

“Similarly, net loans grew by 7.7 per cent growth to N2.8tn, while customer deposits rose by 12.2 per cent to N6.4tn, compared to N5.7tn in the corresponding period of 2020, reflecting increased customer confidence, enhanced customer experience, successes from the ongoing business transformation programme and the deepening of its retail banking franchise.”

The bank also disclosed that its gross earnings rose by seven per cent to N660.2bn as of the end of December 31, 2021, from N616.8bn at the end of the 2020 financial year.

Its total assets grew by 11 per cent to N8.5tn in the year under review, from N7.7tn in 2020, marking the first time the bank’s assets would cross the N8tn mark.

UBA Plc has almost doubled its profits in 6 years since hitting N60 billion in 2015 with the profit now touching roughly N119 billion.

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The statement revealed that in FY 2021, interest income grew by 10.84% from N427.86 billion to N474.26 billion in the current period. UBA’s profit performance is on the back of all margin growth as income from interest and fees and commission income are all appreciated year on year.

The Nigerian lender earned N316.71 billion, from its lending business as Net interest income grew by 22.06% from N259.47 billion.

Following a 56% drop in loan losses, net interest after impairments spiked by 30.71% to stand at N303.85 billion.

UBA, however, grew its income from commission and fees rising 24.98% to N158 billion year on year and also generating a total of N16.39 billion in net trading income representing a drastic 70% decrease year on year. The decrease witnessed in trading income is on the back of losses in foreign currency revaluation and net fair value.

The bank’s e-banking income alone raked in N64.60 billion, representing a 46% spike from N44.25 billion in 2020. This suggests that the bank has better utilized the e-banking channels in the delivery of financial services to its customers.

In addition, the group also grew its deposits from customers by a whopping 12.21% to N6.37 trillion while its total assets are now N8.54 trillion. Net assets rose 11.85% to N805 billion.

In the year under consideration, the bank’s operating income rose by 10 per cent to N443bn compared to N403bn in the prior year, while operating expenses closed the period at N279bn.

The bank proposed a final dividend of 80 kobo for every ordinary share of 50 kobo for the financial year ended December 31, 2021.

“The final dividend which is subject to the affirmation of the shareholders at its annual general meeting will bring the total dividend for the year to N1 as the bank had paid an interim dividend of 20kobo earlier in the year,” it stated.

Commenting on the result, the Group Managing Director/Chief Executive Officer, Kennedy Uzoka, said that notwithstanding the tight and challenging operating environment, UBA continues to deliver significant performance.

“The year 2021 can best be described as a year of global recovery; economies around the world began to witness early-stage recoveries, as supply chains recover from the devastating disruptions suffered in 2020,” he said.

UBA’s Group Chief Financial Official, Ugo Nwaghodoh, who corroborated the GMD’s comments, said, once again, the bank has shown resilience.

“It achieved sizeable growth and strengthened its balance sheet despite the slow pace of economic recovery that characterised the year 2021,” he said.