United Bank for Africa (UBA) Plc released its financial results for the third quarter, showing a 12 per cent growth in gross earnings rise over same period of last year. Gross earnings grew from N188 billion in 2013 to N210 billion for the nine-month period ended September 30, 2014. The bank’s gross earnings received a boost from interest income which rose 12.5 per cent to N149 billion in the same period.
“The rise in gross earnings reflects the increasing business activity across our operations, as we support businesses and institutions with the finance they need to exploit emerging opportunities on the continent,” said Philips Oduoza, Group Managing Director/CEO, UBA Group.
The operating income of N138 billion for the nine-month period to 30 September, 2014, representing a 6.6 per cent increase over the corresponding period of last year, showed the strong underlying operating efficiency of UBA business globally, and the capacity of the business to remain profitable. The bank made a profit before tax of N42.54 billion and a profit after tax of N33.6 billion for the period.
There were also increases in other financial indices; net interest income was up five per cent to N81.96 billion while non-interest income rose nine per cent to N56 billion.
Operating income was up seven per cent to N138.4 billion and operating expense gained 12 per cent to force its cost-to-income ratio growth from 64.3 per cent in the prior year to about 68 per cent in first quarter (Q1) 2014.
Balance sheet capacity remained solid with total assets, which inched 0.4 per cent, up from N2.6 trillion as at December 2013 to N2.65 trillion recorded in nine-month period ended September 30, 2014.
Customers’ deposits had dropped three per cent from N2.16 trillion to N2.09 trillion to mark a decline in total liabilities from N2,407 billion in 2013 to N2,405 in the months under consideration.
Mr Phillips Oduoza had assured that the financial institution remained focused on its medium and long term strategies to grow market share in all its businesses across Africa, manage costs down and ultimately deliver value to all stakeholders.
“We are confident that business returns will be much better in the remaining period of the year as we continue to deploy new and innovative ways of delivering value adding products and services,” said Oduoza in a statement.
Source : Tribune