TheCable

The United Bank for Africa (UBA) has reported a growth in profit before tax (PBT) of N32.7 billion in the first quarter of 2020.

In its 2020 first-quarter unaudited results published on Thursday, the bank said the PBT recorded represents an 8.5% year-on-year increase from the N30.2 billion reported in the first quarter of 2019.

Gross earnings were reported to have grown by 11.8% to close at N147.2 billion compared to N131.7 billion in Q1 2019 with total assets growing by 13.4% to stand at N6.4 trillion.

The bank also said its shareholder fund stood at N612.6 billion as at March 31, 2020.

Commenting on the results, Kennedy Uzoka, the bank CEO, said: “We are pleased with our top and bottom lines in the first quarter of 2020, delivering N147.2billion in gross earnings and profit before tax of N32.7billion”.

“The double-digit growth in the topline testifies to the resilience of our business model as a group, even as the 17% growth in our fees and commission income underscores our diversified business model, enabling us to deliver best value to our stakeholders, even in tough macroeconomic scenarios.

“I am very excited about recent successes we have recorded in all our business segments, especially our retail and electronic banking businesses within the period, with retail deposits accounting for 72% of customer deposits even as cost-of-funds moderates to 3.3%.”

Speaking on operations during the lockdown due to the coronavirus pandemic, Uzoka said the bank has put in place various strategic channels to ensure that customers transactions are effectively carried out with ease.

“In response to the spread of COVID-19 several national governments have announced a partial or total lockdown in a number of our markets, post-Q1 2020.

“Fortunately, we have built robust electronic channel platforms to enable us effectively serve our customers from the convenience of their homes. Despite the lockdown, our banking channels have remained open to our customers 24/7, even as we continue to align and adapt our operating model to ensure we service our customers excellently and safely.”

Uzoka also said the bank has been identifying emerging strategic opportunities arising from the situation and is positioning itself to take full advantage of this to delight customers and create value for stakeholders.

Ugo Nwaghodoh, the group chief finance officer, who also commented on the result, said the bank recorded a return on average equity (ROAE) of 20% during the period with a net interest margin of 6% and 11.6% growth in net fee and commission income.

“Amidst the volatile operating environment, the Bank recorded a net loan growth of 9.5% whilst maintaining our low to moderate risk appetite,” he said.

“Remarkably, our operating income grew 12.2%, giving credence to improved operational efficiency across the group, and the increasing contribution of subsidiaries to our earnings base. We are exploring and taking advantage of all opportunities to improve our operations and balance sheet efficiencies, given the prevailing market conditions.”

The bank says it now offers services to 18 million customers in 20 African countries with a presence in New York, London and Paris.