United Bank for Africa Plc reports profit of N119 billion in 2021

United Bank for Africa (UBA) Plc has released its Full-year financial result, which revealed a profit of N118.68 billion in 2021. This reflects an 8.72% increase year on year.

The bank also reported earnings per share of N3.39, a 9.35% growth from the N3.10 reported a year earlier in 2020. UBA Plc has almost doubled its profits in 6 years since hitting N60 billion in 2015 with the profit now touching roughly N119 billion.

The statement revealed that in FY 2021, interest income grew by 10.84% from N427.86 billion to N474.26 billion in the current period. UBA’s profit performance is on the back of all margin growth as income from interest and fees and commission income are all appreciated year on year.

Key highlights of its results

• The Nigerian Lender earned N316.71 billion, from its lending business as Net interest income grew by 22.06% from N259.47 billion.
• Following a 56% drop in loan losses, net interest after impairments spiked by 30.71% to stand at N303.85 billion.
• UBA, however, grew its income from commission and fees rising 24.98% to N158 billion year on year and also generating a total of N16.39 billion in net trading income representing a drastic 70% decrease year on year. The decrease witnessed in trading income is on the back of losses in foreign currency revaluation and net fair value.
• The bank’s e-banking income alone raked in N64.60 billion, representing a 46% spike from N44.25 billion in 2020. This suggests that the bank has better utilized the e-banking channels in the delivery of financial services to its customers.
• In addition, the group also grew its deposits from customers by a whopping 12.21% to N6.37 trillion while its total assets are now N8.54 trillion. Net assets rose 11.85% to N805 billion.

Conclusion

United Bank for Africa Plc last traded at N8.25 per share and its market capitalization stands at N282.15 billion as of Friday, March 4, 2022. Year-to-date performance shows that the share price of the company has appreciated by 2.48%.

The Directors of the group have proposed a final dividend per share of N0.80 per share, to be paid from the company’s retained earnings account as of December 2021. The company had earlier paid an interim dividend of N0.20 kobo in September 2021, hence bringing the total dividend for the financial year to N1.00 kobo.

The proposed dividend will be presented to shareholders for approval at the next Annual General Meeting and paid subsequently subject to withholding tax at an appropriate rate.

Based on its current share price, UBA Plc’s dividend yield is about 12%.