UBA Capital PLC: Strong Q3 results amid environmental challenges


UBA Capital Nigeria is an integrated, multi-disciplinary investment bank providing advisory services.

UBA Capital Nigeria over the last four years has established itself as the leading project finance advisory team in Oil & Gas and is currently engaged in raising over US $6 Billion for various oil & gas projects in Nigeria.

UBA Capital Nigeria has played a pioneering role in developing the debt capital markets in Nigeria and led the league table in the issuance of corporate bonds in Nigeria for 2010.

UBA Capital Nigeria is a recognised leader for design and execution of major financial transactions including multi-jurisdiction, cross-border mergers & acquisitions and has a strong track record in corporate finance having been involved in several equity capital raising transactions.

Accelerated growth since listing

Since getting listed on the floor of the Nigeria Stock Exchange (NSE) in 2013, UBA Capital has proven that a firm can achieve growth through focus strategy, market penetration and innovative products.

It is no surprise that the Bank rewarded the owners of the business with an impressive return on investment (ROI) when it declared a dividend of N1.5 billion for financial year end 2013.

In its mission to promote and facilitate investment in Nigeria, UBA Capital launched an online trading platform with real time investment account funding functionality.

The introduction of the innovative products will enable clients manage their portfolios online on mobile devices, tablets, laptops and desktop computers.

Additionally, 24/7 connectivity to the portfolio is complemented by access to UBA Capital’s Online Customer Support via the online chat functionality, so investors can talk directly to the customer service team.

Financial Performance for the period Q3 2014

For the first nine months  through September 2014, UBA Capital’s gross earnings reduced slightly by 1.54 per cent to N3.1 billion from N3.24 billion the same period of the year (Q3) 2013.

The slow growth at the top line level was caused by a 78.09 per cent decrease in investment income to N260.69 million as against N1.19 billion the preceding year.

Net investment margin surged by 723.60 per cent to 1.18 billion in the review period compared to N143.76 million the same period of the corresponding year (Q3) 2013.

Similarly, other income also spiked by 144.98 per cent to N701.58 billion in Q3 2014 compared to N292.30 billion the preceding year.

Total operating expenses were up by 15.88 per cent to N1.24 billion, from N1.07 billion the preceding year while operating expenses ratio jumped to 38.87 per cent in Q3 2014 from 33.02 per cent last year.

As a result of the increased costs, profit before tax (PBT) were down by 6.01 per cent to N2.0 billion compared to N2.16 billion from the like quarter of 2013.

UBA Capital’s total assets increased slightly by 1.08 per cent to N80.33 billion as against N79.47 billion the same period of the corresponding year (Q3) 2013.

Loans receivables spiked by 103.50 per cent in the period under review compared to N18.01 billion as at Q3 2013 while total share holders fund increased by 16.70 per cent to N9.78 billion.


Source : BusinessDay

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