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UBA earns N11.7bn profit in six months

Posted by By AMECHI OGBONNA on 2007/04/11 | Views: 873 |

UBA earns N11.7bn profit in six months


United Bank for Africa (UBA) Plc, Nigeria’s largest bank, has continued to leverage on its size and financial strength to post outstanding profits to the delight of its stakeholders. In one of its latest outing, the bank has reported a profit of N11.7billion for the half year ended March 31, 2007, up by 108 percent from N5.648 recorded in the previous year.

United Bank for Africa (UBA) Plc, Nigeria’s largest bank, has continued to leverage on its size and financial strength to post outstanding profits to the delight of its stakeholders. In one of its latest outing, the bank has reported a profit of N11.7billion for the half year ended March 31, 2007, up by 108 percent from N5.648 recorded in the previous year.

A breakdown of the trading results, now before the Nigerian Stock Exchange (NSE), shows that gross earnings grew by 31 percent from N35.8 billion in 2006 to N48.883 billion in 2007, while Profit-After-Tax (PAT) grew astronomically from N4.599 billion in 2006 to N10.109 billion in 2007, an increase of 120 percent.

These exponential growth rates witnessed in the relevant performance indicators, also confirms that the bank is on course to surpass its pre-offer projections.
UBA Plc had at the inception of its ongoing public offer and rights issue promised to return net profits in the region of N16.9 billion.

However, with profit-after-tax already in excess of N10 billion, the bank’s management says it is confident that all projections and targets set out in the prospectus will be achieved within the specified period..
Commenting on the result, UBA’s Director of Resources, Mr. Kennedy Uzoka, said the performance, which is the product of prudent management and creative resource application, were essential hallmarks of a bank that wants to play on the global stage. He assured all stakeholders that the trend of good performance, as reflected in the first quarter results would be sustained for the remaining part of the financial year.

"We are happy about the result and it goes to show how determined we are, not only in growing and rewarding shareholder value, but also taking Nigeria into reckoning in the continental and global market. As you already know, UBA vision is to be the foremost financial institution in Nigeria and a leading African and global player," he said.
Uzoka stated that the least management expected from its effort was predictable good performance in the market.

United Bank for Africa Plc, hit the capital market on March 1, 2007 to raise about N54 billion through a hybrid offer of rights issue and public offer. The exercise, which closes on Thursday, April 12, 2007 is intended to raise funds for the bank expansion beyond Nigeria’s domestic branch rollout, ATM rollout and branch upgrade, among others. Specifically, UBA is issuing 423,600,000 ordinary shares of 50 kobo each at N34.00 per share to existing shareholders to snap up by way of rights, while the balance 1,127,400,000 ordinary shares is being offered for public subscription at a unit price of N35.00.

With a thriving subsidiary in Ghana that boasts of seven branches, an office in the Cayman Islands and being the only sub-Saharan African bank (ex-RSA) with a presence in the United States (New York), UBA has made some bold strides towards its aspiration to be a truly global African bank delivering value to customers wherever they exist.

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Comments (3)

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Abieyuwa(Edo, Nigeria)says...

Otasowie means evening life is better than morning life. There is an error in your “evening life is better than evening life”?

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Naija g(Houston, Minnesota, US)says...

Sokari doesn’t mean joy. Joy is Biobela. Go to the village and ask the meaning of the name.

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Fay(Katy, Texas, US)says...

Actually translates to bravehearted.