UBA Records Superior Market Performance, 54per cent Liquidity Ratios

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By Benjamin A Ameh, Lagos

United Bank for Africa Plc has recorded liquidity, adequacy and loan deposit ratios of 53.5 per cent, 22.3 per cent, and 37.7 per cent respectively which above regulatory and industry benchmarks.

According to the statement sent through the floor of the Nigeria Stock Exchange NSE to the stock market community on Monday shown an unaudited results growth of 16.7 per cent in gross earnings from N107.9 billion 2012 to N125.98 billion in six months 2013. The Profit after tax was not left out of upward performances as it jumped from N25.8 billion to N28.4 billion respectively.
While on the balance sheet side, deposits toed the growth line by 13.5 per cent from N1.77 trillion in 2012 to N2.01trillion 2013 and total assets followed the growth pattern by  6.9 per cent  N2.42trillion.

Similarly, the bank recorded a profit before tax of N33.248 billion for the half year ended June 30, 2013 compared with N30.409 billion in the corresponding period of 2012.

Responding to questions on the results, UBA’s Group Managing Director and Chief Executive Officer, Mr. Phillips Oduoza, said: “We are pleased with our first half 2013 financial results; having operated under the revised CBN guideline on bank charges in the second quarter of the year, I am glad to announce that our plans to minimise the effect of the reduced fees and commissions are working.

Our business fundamentals are improving with increased revenues from loans creation, cost savings arising from cheap deposits mobilisation and improved asset quality. We will focus on driving our business to gain market share and manage costs to enable us deliver value to our stakeholders.”

Analysts and some shareholders that spoke about the UBA’s PBT and PAT records said the performance surpassed it forecasts by 12 per cent and 11 per cent respectively.
They further stated that the UBA’s market price would be supported the sterling results.

“We believe that UBA’s exposure is just under 10 per cent of deposits, implying a worst case EPS impact of less than five per cent to 2013 earnings. Consensus 2013 PBT is N62.2 billion. We do not expect any significant changes to this forecast on the back of these results and/or the hike in CRR. We expect the results to be supportive of the shares” they said.

 


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