Tag: Profit

  • UBA delivers N153 billion profit, records 11% balance sheet growth

    UBA delivers N153 billion profit, records 11% balance sheet growth

    Africa’s Global Bank, United Bank for Africa (UBA) Plc, has announced its audited results for the full year ended December 31, 2021, reporting impressive performance in key financial metrics.

    The 2021 financial result filed by the bank at the Nigerian Stock Exchange (NSE) on March 4, 2022, showed that gross earnings rose significantly to N660.2 billion representing an increase of 7 percent compared to N616.8 billion recorded at the end of the 2020 financial year.

    Total assets grew by 11 percent to an unprecedented N8.5 trillion in the year under review, up from N7.7 trillion in 2020, thus marking the first time the Bank’s assets will cross the N8 trillion mark.

    Despite the huge challenging business and slow economic recovery in most of its countries of operations, UBA’s Profit Before Tax was impressive with a 20.3 percent growth to N153.1 billion, compared to N127.3 billion at the end of the 2020 financial year; while Profit After Tax rose grew by 8.7 percent to N118.7 billion in 2021, compared to N109.2 billion recorded the previous year.

    Similarly, net loans grew by 7.7 percent growth to N2.8 trillion, whilst customer deposits rose by 12.2 percent to N6.4 trillion, compared to N5.7 trillion in the corresponding period of 2020, reflecting increased customer confidence, enhanced customer experience, successes from the ongoing business transformation programme and the deepening of its retail banking franchise

    In the year under consideration, the bank’s operating income rose by 10% to N443 billion compared to N403 billion in the prior year, whereas operating expenses closed the period at N279 billion.

    In its usual tradition of rewarding shareholders, the Bank proposed a final dividend of 80 kobo for every ordinary share of 50 kobo for the financial year ended December 31, 2021. The final dividend which is subject to the affirmation of the shareholders at its Annual General Meeting will bring the total dividend for the year to N1 as the Bank had paid an interim dividend of 20kobo earlier in the year.

    Commenting on the result, the Group Managing Director/CEO, Kennedy Uzoka, said that notwithstanding the tight and challenging operating environment, UBA continues to deliver significant performance.

    He said, “The year 2021 can best be described as a year of global recovery; economies around the world began to witness early-stage recoveries, as supply chains recover from the devastating disruptions suffered in 2020.

    Consequently, UBA recorded remarkable 7% growth in top line to N660 billion (USD1.56bn), and profit before tax (PBT) of N153.1 billion, up 20.3% from the prior year. Net Loans and advances grew by 7.7% to N2.8 trillion with exposure mostly to resilient economic sectors including oil & gas, agriculture and manufacturing. Deposit from customers grew 12.2%, crossing the N6 trillion mark, to N6.4trillion.”

    The GMD explained that the quality of UBA’s portfolio as well as the strength of the bank’s credit risk management frameworks and policies remain the bedrock of the positive results that the bank has been recording over the years, adding that the current performance highlights UBA’s relentless customer focus, and leverage on its key strategic levers – People, Process and Technology.

    “Looking forward, I am particularly excited about our ongoing Enterprise Transformation Program which is designed to enhance the bank’s process agility, service delivery and customer experience. We are also making sizeable investments in cutting-edge technology and cyber security, to keep our innovative digital banking offerings above the curve, as we tool and re-tool our human resources to compete and win in a rapidly changing and evolving landscape. This will ensure the bank continues to achieve respectable top and bottom-line growth through the medium to long term” the GMD stated.

    UBA’s Group Chief Financial Official, Ugo Nwaghodoh, who corroborated the GMD’s comments, said, once again, the bank has shown resilience. It achieved sizeable growth and strengthened its balance sheet despite the slow pace of economic recovery that characterised the year 2021.

    “Through active and diligent assets and liabilities management, the bank was able to protect its net interest margin and achieved a downward moderation of Cost of funds (CoF) by 70 basis points to 2.2% from 2.9% in the prior year.

    According to him, the group’s capital adequacy ratio at 24.9% was well above the required regulatory minimum and reflects a strong capacity for business growth. “The Group’s non-performing loan ratio improved further to 3.6% from 4.7% at the end of 2020. This testifies to the quality of UBA’s loan portfolio even as the bank remains relentless in its resolve to drive down the Cost-to-Income ratio, which stood at 63.0% at the end of the year.”

    Nwaghodoh added that the bank achieved further strides in growing its business and gaining market share across its pan-African operations, with the region accounting for 63.2% of the Group’s profitability, compared to 55.4% in 2020; Loans and advances as well as Deposit in the region were also up 14.5% and 27.3% respectively from a year earlier.

    In his concluding remarks, the CFO stated “We recognise the changing competitive landscape and are proactively positioning to consistently deliver on our strategic objectives and commitment to shareholders.”

    United Bank for Africa Plc is Africa’s global bank, offering banking services to more than twenty-five million customers, across over 1,000 business offices and customer touch points in 20 African countries. With a presence in the United States of America, the United Kingdom and France and more recently the United Arab Emirates, UBA is connecting people and businesses across Africa through retail; commercial and corporate banking; innovative cross-border payments and remittances; trade finance and ancillary banking services.

  • UBA posts N76.2bn profit for H1 2021

    UBA posts N76.2bn profit for H1 2021

    The Mr. Tony Elumleu and Mr. Kennedy Uzoka led United Bank for Africa, UBA, is soaring higher, posts N76.2 billion gross profit in the first half of 2021 ended June 30, recording growth across all major income lines and performance indicators.

    TheNewsGuru.com, (TNG) reports the pan African financial institution delivered a 33.4 percent appreciation in its profit before tax which rose to N76.2bn from N57.1bn recorded in the same period of 2020.

    It translated to an annualised Return on Average Equity of 17.5% as against 14.4% a year earlier.

    According to a statement from the bank yesterday, the results filed with the Nigerian Exchange, showed that the Group’s profit after tax stood at N60.6bn representing a significant rise by 36.3% compared to N44.4bn recorded in the half year of 2020, while gross earnings grew to N316bn from N300.6bn as at June 2020; a 5% growth.

    As at June 30, 2021, the Group’s Total Assets crossed the N8tn mark as it soared to N8.3tr up from N7.7tr at the end of the 2020 financial year. Customer Deposits also crossed the N6tr mark growing by 7.4% to N6.1tr in the period under consideration, compared to N5.7tr as at December 2020.

    UBA’s Group Managing Director/Chief Executive Officer, Mr. Kennedy Uzoka, said, “This has been a strong first half for us, as global economic recovery exceeded expectations, creating a positive rub-off on consumer and corporate confidence, savings and investment activities.”

    UBA’s Group Chief Financial Officer, Ugo Nwaghodoh, said, “Capital position remained strong, with a capital adequacy and liquidity ratios of 23.9% (22.4% in 2020H1) and 58.3% (58.2% in 2020H1) respectively. This is robust enough to support our growth ambitions”.

  • NNPC makes history, announces N287bn profit for year 2020

    NNPC makes history, announces N287bn profit for year 2020

    For the first time in 44 years, the Nigerian National Petroleum has posted its first Profit After Tax of N287bn.

    This profitability posted by the Corporation was announced by President Muhammadu Buhari in a statement signed by Femi Adesina, Special Adviser to the President (Media and Publicity).

    The President was quoted in the statement to have said that the NNPC losses were reduced from N803bn in 2018 to N1.7bn in 2019 and the eventual declaration of Net Profit in Year 2020 for the first time in its 44-year history.

    According to the President, who doubles as Minister for Petroleum Resources, this development is consistent with his administration’s commitment to ensuring prudent management of resources and maximization of value for the Nigerian people from their natural resources.

    He said, “I am pleased to announce the declaration of Profit after Tax of Two Hundred and Eighty Seven Billion Naira (N287 Billion) in Year 2020 by the Nigerian National Petroleum Corporation. This is sequel to the completion of the statutory Annual Audit exercise for Year 2020.

    “The NNPC losses were reduced from N803 Billion in year 2018 to N1.7 Billion in year 2019 and the eventual declaration of Net Profit in Year 2020 for the first time in its 44-year history.

    “This development is consistent with this administration’s commitment to ensuring prudent management of resources and maximization of value for the Nigerian people from their natural resources.

    “I have further directed the Nigerian National Petroleum Corporation to timely publish the Audited Financial statements in line with the requirements of the law and as follow up to our commitment to ensuring transparency and accountability by public institutions.

    “I congratulate the Board, Management and Staff of the Corporation and look forward to greater value creation for the Nigerian people.”

  • [TNG INTERVIEW] PIB: Inclusion of frontier states to be funded by FG will rubbish profit from crude oil sales – Rep Chinda

    [TNG INTERVIEW] PIB: Inclusion of frontier states to be funded by FG will rubbish profit from crude oil sales – Rep Chinda

    …says Bill has gained tribal and political colouration

    …but I will support it, it’s better than nothing

    …Nigeria belongs to us all we must be seen to give it our best

    …true federalism is the ultimate

    Rep Kingsley Ogundu Chinda is a lawyer and the leader of the House of Representatives Peoples Democratic Party PDP Caucus. He represents Obio Akpor Federal Constituency of Rivers State. In this chat with TheNewsGuru.com,(TNG) Regional Editor, Emman Ovuakporie, he spoke extensively on true federalism, constitution amendment, the oldest Bill in Nigeria, the Petroleum Industry Bill, PIB, the intrigues, sectionalism, tribal and political colourations. Excerpts:

    After 20years, suddenly the entire north is so interested in the passage of PIB and I remembered vividly in 2011, on the last day of plenary was when a section of lawmakers killed PIB. Then in 2015, the House passed it. In 2019 the Senate passed it. Suddenly the north is saying they are now in love with PIB, which kind of love is this?

    A: For me a lot of things that happened in the parliament here appeared to be laced with either religion, tribe or political colouration. The PIB has also gained that kind of trend.

    Like you rightly pointed out, this is a bill that has been passed before now but not assented to, almost got passed but a section of the country kicked and killed it and today they are clamouring for it.

    People will not want to tell the truth. I will still support the PIB to fly but the north is interested because of the frontier exploration; one of the issues they are agitating for that the federal government should fund the frontier exploration.

    But I also say that we are all in this country, it is one Nigeria and we believe in Nigeria as a state. I will keep praying that for those of us that have been privileged to find ourselves in position of governance and public authority, that we should place the interest of the country first, over and above sectional interests. The frontier exploration, how would it benefit Nigeria as a nation that is what we should be asking ourselves.

    In one breath we are saying we want to open up this sector, commercialize it, invest little and gain more out of it. In another breath we want to fund the area that before now the private sector is funding and we are doing all these because of our own parochial interest.

    Like I said these things are known, we understand what is happening but I still believe that the PIB should pass, let it be a law, let us begin to practice it and then over time, if there is need, the same people I believe would call for an amendment to correct because if you asked that the country should fund frontier exploration, we are going to plunge in almost all our profits back into exploration, it will not make sense.

    But today if we remove it, I can assure you that the PIB will not fly, it will not be passed, unfortunately that is the country we find ourselves in; a country where Nigeria comes last, our religious belief comes first, my tribe comes first and then the country comes last.

    There are things that are fundamentally wrong with us as a nation which we must correct and that brings us to the issue of cutting down on the powers of the federal government, looking at the constitution a second time and allowing the states, allowing the local governments to do more and let the federal government take care of things that are only necessary for them to do so; begin to practice true federalism, both fiscal federalism and political federalism.

    If we allow these things to flourish, this country is not poor like everybody is saying, Nigeria is a rich country but Nigeria is poor in terms of managers, those who are managing our affairs are poor in mentality and because we are poor upstairs, we cannot bring anything better than what we have on the table.

    And so I solicit, I am an apostle of mindset change in this country that is the only way we can get out of the mess we find ourselves. Even where you get angels to run this country as long as tribalism is there, nepotism is there, it will be difficult for us to get out of the mess. So we must begin to change our mindset.

    Tell me one thing on earth that is made for itself; no human being was created for himself and so no tribe was created for itself. You are created for others. So when you begin to look at yourself, what am I going to benefit, what am I going to gain out of this, you will make a very fundamental mistake.

    When you ask what are we, what is he, what will others get out this action then you are doing the right thing, that is why God created you. Everything created is created for others, so is man created for others but we make the mistake of being selfish.

    So I will urge us the time has come for us to be Nigerians, for us to be a little bit more selfless, for us to make laws not for us but for Nigeria and for Nigerians, that is the only way we can move forward.

    So in summary, yes we have seen the arrangement that is going on concerning the PIB by our brothers from the north but when the PIB pass, let it go but I know they are making a very fundamental mistake.

     

    Q: Oil companies are saying that this PIB that is to be passed is an emotional PIB, that there are so many things in the PIB that needed to be expunged for it to be a real PIB as it is not really commercially oriented; Shell, Mobil and the rest. From what you have said it is truly an emotional PIB. How would you react to that?

    A: I agree with them that it is an emotional PIB that we have before us. Whilst the south is asking for more when it comes to oil producing communities, we want 20%, we want 10%, we want minimum of this and all that, the north is asking for federal sponsorship of frontier oil exploration; these are all things that has to do with my tribe, my tribe.

    But as I have also said, let us pass the PIB, there is room for amendment. I believe that laws with time will continue to progress, let us pass the PIB. The emotional PIB that we have is still better than not having one at all.

    We are taking the first steps, we know that there are mistakes, we know that there are fundamental flaws, let us take that first step and make it a law, it is easier to amend a law than to come up with a fresh one. It has taken us decades.

    But if we on our own can realize these errors and go back to the drawing board and better what we have right now, it will be better for the country but if we cannot let us go ahead and pass the PIB.

     

    Q: You talk about restructuring, can you educate the layman the difference between the local government autonomy that has just been allowed and restructuring?

    A: For me that is one thing I also say. I have heard the president passionately talking about local government autonomy, in fact instructing council chairmen to either use their money or go to jail if they release it to their governors, I don’t know whether he said so but I read it on the social media. Wonderful, beautiful, in fact that is the content of our constitution.

    Now when we are talking about restructuring, is the federal government to also do the same when it comes to her relationship with states, not just the states and the local government.

    So if the president is the champion for local government autonomy, the president should also be the champion for state autonomy which is the whole essence of restructuring.

    This is a federation, Nigerian portends to be the federal republic of Nigeria, not unitary republic of Nigeria. So Mr President should act that way.

    The constitution has made it clear when it comes to the powers of the federation, all we are saying is that there are things that we see as unnecessary baggage on the shoulders of the federal government, that federal government should shelve and allow states to run these issues.

    We take things like education, federal government has no business in education. Now go back to history, the west today you see them as people who are advanced in education and the north appears to be slightly backward in education why the allowed education for the regions. If we had the system we have today, the west would not have enjoyed that advantage.

    You knows, if these things are moved out of the shoulders of the federal government, the north might even overtake the west when it comes to education.

    The entire society is moving, life itself is dynamic, we cannot continue with this feeding bottle system, states running to Abuja for allocation and then thereafter you go back; and federal government freighting away monies because of projects that they cannot even monitor.

    So let us begin to run a federation that is the essence, that is the entire thing about restructuring. The things that we think are not necessary for the federal government to overburden itself shelve it for states to handle. The ones that local governments can handle, let local governments handle under the constitution.

    We take things like security, we have been battling with insecurity in Nigeria. The structure of our constitution does not help us. The police man in your village will take instruction from the commissioner of police who will take instructions from the IG who will take instructions from the commander I chief and so before those instructions come down, the situation is beyond control.

    All we are saying, things like security let the states that can afford have their own state police. Local governments that can afford should have their own local government police and all of them will have different functions.

    There are crimes that will go to federal police, there are crimes that state police can handle, there are crimes that local government police can handle. There is no way there cannot be improvement in the security system.

    You come to the health sector; states should be allowed to manage that sector. The federal government cannot be investing in everything and that is why you have duplication of agencies, functions everywhere because it is so much and so it is not thorough.

    So when we talk of restructuring, perhaps people look at monies and all that, we are talking about states managing their resources. Perhaps the south or Niger Delta that produces oil will now have the whole of the oil money and I think that is the pain, it brings us back to the issue of let us look at Nigeria as a state, as our state and let the interest of the country be uppermost in our minds.

    It will even challenge states if you say look, you get what you generate and pay tax to the federal government; every state will begin to generate resources. Little did we know that we have so much gold in Zamfara, so why won’t that be made a formal thing, let the state get a formal resources from that wealth and pay tax to the government. Every state in this country is blessed but we are only being lazy by the system of government that we practice.

     

    Q: Looking at the constitution, from what you have said, do you advocate for amendment or do you support a new constitution?

    A: On the issue of the amendment of the constitution, in fact in the 8th assembly I started a movement with some of my colleagues for the replacement of the current constitution that we have, that is to reenact a fresh constitution.

    But we had a hitch; in fact I was searching for a copy of the constitution we proposed and what is that hitch is section 9 of the current constitution which provides for alteration of the constitution and empowers the parliament to alter the constitution.

    We looked at it and our question is, can we actually substitute the current constitution by way of amendment and a lot us arrive at a no answer; that by the provisions of section 9 we cannot repeal and reenact a new constitution under that section because the definition of alteration however you try to enlarge it does not mean to remove completely, it means to alter, to change, to amend, so that is the difficulty that we have.

    What I have done is to propose again for an amendment of section 9, to allow for repeal and reenactment of a new constitution subject to a referendum.

    So if you ask me my personal opinion, today you cannot bring in a new constitution under section 9, you cannot replace and reenact, no.

    Else what we have proposed a quasi parliamentary system with one national assembly, one house. We looked at the cost of governance and we need to cut down the cost of governance.

    The issue of restructuring, most of the items under exclusive and concurrent list, remove them to the states to perform those functions and the local government. The issue of security we also looked at it.

    And in arriving at these things and crafting this new constitution, we took into consideration several confabs that have been held and their resolutions, wonderful resolutions that they arrived at. They looked at the problems of this country and came up with suggestions.

    So we incorporated a lot of them in the proposed constitution but our problem has been the provisions of section 9 and so we are proposing an amendment to section 9, praying that it would fly.

     

    Q: For some time now, IPOB, INC and the rest they have been calling for secession. Suddenly INC had a meeting with Buhari four days ago and they now said what they want is full restructuring whereby those from the Niger Delta will explore what they have than for us to be coming to the centre to beg for food, that is one and they demanded for two extra states. Meanwhile the president has met with other south-south leaders…Where is Nigeria heading to?

    A: The things you are seeing both the insecurity, secession call and all that it only points to the fact that there is a maladministration in the system, it points to the fact that Nigerians are not satisfied with what they are getting, it points to the fact that people are beginning to be frustrated with the system and that is why they are talking about exit.

    I don’t think that anybody truly wants to exit Nigeria but for the frustrations that Nigerians are facing. And that was why we had even earlier called here that Nigerians should call on their members to commence impeachment because we felt that Mr President was not doing enough, that Mr President has not shown capacity and competence on the job, that Mr President has relinquish his functions to others.

    But today you can see him meeting with different groups in the country, those who have been calling for one right or the other and that is what we expect Mr President to do; he will need to continue with such meetings because that is the only way we can make progress.

    What people are talking about is injustice in the system. You are talking about peace, you call for peace but you forget to do justice. As long as there is injustice, as long as there is imbalance people will continue to ask that they want to take their leave but if you give them justice they will stay back.

    We all want Nigeria but not a Nigeria where you will be a second class citizen, not a Nigeria where you will continue to face injustice, no.

    So what he is doing is right, he is discussing with people, talking to them, trying to listen to their complain; listening to their complain only gives some satisfaction.

    I have been saying that this government is irresponsive why do I say so because Nigerians will complain and you don’t care and these are all the aftermath of irresponsiveness of a government. When people keep complaining and you ignore them, what is the implication?

    If you make peaceful change impossible, you make violent change inevitable, that is where we are getting to, although late but it is better late than never.

    So I ask Mr President now that he has woken up let him not sleep again, let him continue in that direction, we want Nigeria to remain peacefully. If there is no peace I can’t be in this office.

    But when some of us talk they think that we want war, we want crisis, we want to tear the country, we want everybody to wake up because we want this country to get to the Promised Land. Nigeria is very wealthy but we are not managing our resources properly.

  • Fidelity Bank Announces 53.9%  Growth in 1st Quarter Profit Before Tax of N10.1bn

    Fidelity Bank Announces 53.9% Growth in 1st Quarter Profit Before Tax of N10.1bn

    Top Nigerian bank, Fidelity Bank Plc, has recorded a strong financial performance in the first quarter of 2021, posting appreciable growth in profits for the period ending 31 March 2021.

    Details of the unaudited results, released at the Nigerian Stock Exchange (NSE) show that Profit before Tax (PBT) grew by 53.9% from N6.6bn in 2020 to N10.1bn for the corresponding period of March 31, 2021.
    Similarly, Net revenue in the period increased by 13.4% from N30.3bn in Q1 2020 to N34.4bn in 2021, just as the bank recorded growth in other performance indices.

    New on the job Nneka Onyeali-Ikpe, MD/CEO of Bank commenting on the results said:

    “We commenced the year showing impressive double-digit growth in profitability and improved performance across key efficiency indices whilst ensuring our business model continued to deliver strong positive results in line with our guidance for the 2021 financial year.

    Gross Earnings increased by 7.7% YoY to N55.1bn on account of 66.7% growth in non-interest revenue to N12.1bn from N7.2bn in Q1 2020. In absolute terms, the increase in NIR came from FX related income, digital banking income and account maintenance charge etc. as total customers’ induced transactions across all our service channels increased by 30.4% YoY and 17.1% QoQ.

    Net Interest Margin remained unchanged at 6.3% compared to 2020FY as the drop in average funding cost offset the decline in average yields on earning assets. Average funding cost dropped to 2.5% from 3.6% in 2020FY due to a combination of improved deposit mix and a slight moderation in average borrowing cost. This led to 26.2% decline in total interest expenses, which translated to 17.1% increase in net interest income to N28.8bn despite a 4.3% increase in interest bearing liabilities. We refinanced our 7-Yr N30.0bn Tier II Bonds issued in 2015 at 16.48% p.a. with cheaper 10-Yr N41.2bn Tier II Bonds priced at 8.5% p.a., which led to a 61bpts drop in average borrowing cost to 4.5%.

    Operating Expenses increased by N1.3bn (6.2%) to N23.0bn largely driven by N4.3bn growth in regulatory charges (NDIC & AMCON Charges). Excluding the increase in regulatory charges, total operating expenses would have dropped by 13.8% (6.1% QoQ) to N18.6bn from N21.6bn in Q1 2020 (Q4 2020: N19.8bn).

    Total Deposits increased by 3.1% YTD to N1,751.3bn from N1,699.0bn in 2020FY, driven by 5.5% increase in low cost deposits (Demand: 6.2% | Savings: 4.1%). Foreign currency deposits increased by 15.7% YTD (N46.9bn) and now accounts for 19.7% of total deposits from 17.5% in 2020FY, as we harness the benefits of our renewed drive in Diaspora Banking as well as the recent CBN Naira-for-Dollar Incentive Scheme for diaspora remittances to Nigeria.

    Retail Banking continued to deliver impressive results as savings deposits increased by 4.1% YTD to N441.6bn and we are on course to achieving the 9th consecutive year of double-digit growth in savings deposits. Savings deposits was responsible for 32.9% of the absolute growth in total deposits and now accounts for 25.2% of total deposits compared to 25.0% in 2020.

    Net Loans and Advances increased by 7.6% YTD to N1,426.3bn from N1,326.1bn in 2020FY. However, the actual growth was 6.8% while the impact of the currency adjustment (2020FY: N400.3/$ – Q1 2021: N407.6/$) accounted for a 0.8% YTD growth in the loan book. Cost of risk came in at 0.4% and the NPL ratio dropped to 3.6% from 3.8% in 2020FY.

    Other Regulatory Ratios remained above the required thresholds with liquidity ratio at 33.9% and capital adequacy ratio (CAR) at 18.4% from 18.2% in 2020FY.

    We are committed to sustaining our growth trajectory and achieving the long-term strategic aspirations of the Bank as we look forward to delivering another set of good results in the next quarter”.

  • Polaris Bank Sustains Profit Growth with N28.9bn (PBT) in 2020 financial year

    Polaris Bank Sustains Profit Growth with N28.9bn (PBT) in 2020 financial year

    Polaris Bank Limited has released its full-year audited financial results for the year ended December 2020 posting a Profit Before Tax (PBT) of N28.9billion.

    The results which show the Bank’s second year performance scorecard after two years of operation, have further consolidated the Bank’s position as focused on the path of profitability, growth, and value creation.

    Details of the results show that its year 2020 performance reflects a 4% Year on Year (YoY) increase in Profit before Tax (PBT). The performance according to the financial statements is driven by the combination of the significant reduction in interest expense due to the Bank’s pursuit of low interest-bearing deposits as well as lowering impairment charges on loans and other financial assets. The Bank recorded Return on Asset (ROA) and Return on Equity (ROE) of 2.4% and 29.4% respectively which favorably place the Bank as a key player in the industry. The Bank’s Total Assets stood at N1.18trillion, a 3% growth on the previous year while Shareholders Funds grew by N14billion (17%), largely attributable to internally generated profits. The Bank increased its Customer Deposits by N56billion, predominantly low-cost deposits in spite of difficult economic and industry conditions, and increased its gross loan book by N38biilion reflecting the Bank’s modest and prudent risk strategy to grow its Portfolio of Quality loans for optimal interest income generation.

    Commenting on the Bank’s performance, the Managing Director/Chief Executive Officer (MD/CEO) of Polaris Bank Limited, Mr. Innocent C. Ike who took over in the course of the year from Mr. (now Senator) Tokunbo Abiru explained that “Polaris Bank has achieved significant milestones since its inception in September 21, 2018 when we started this journey. We have since grown to earn the confidence of the banking publics, offering quality banking services at the cutting edge of technology”. Continuing, he noted, “2020 was arguably the most challenging year that the world has faced in decades owing to the negative impact of COVID-19 on businesses and the economy. Yet, the current result demonstrates the importance of the deployment of appropriate strategies, and effectively validates our recent investment in technology solutions and digitization of our products and processes,” he added.

    He explained that the Bank’s subsisting three-year Corporate Transformation Plan has recently been reviewed in line with the changing operating environment and trend dynamism for sustainable value creation. Digital transformation remains one of the potent strategies to strengthen the Bank’s balance sheet, control costs, and improve processes while providing clients with wider self-service offerings.

    In the view of some financial analysts, Polaris Bank’s remarkable achievements in 2020 are a testament of her consolidation of its 2019 performance, relevance of the Bank’s new Corporate Strategy, management depth and good Corporate Governance.

    The Board and Management of Polaris Bank have demonstrated strong commitment towards professionalism and business ethics by upholding sound risk management practices and proactively taking measures to ensure the Bank is on the path of value creation and sustainability. Polaris Bank’s performance in FY’20 reflects commendable improvements in key performance indicators, assuring a strong positive outlook for earnings, margins and profitability, a cautious pursuit of loan growth, a sustained strategy for operational efficiency, funding cost optimization, and efficient deposit mix. The headroom for loan creation no doubt presents an opportunity for improved margins.

    Going into the year 2021 and despite the challenging macroeconomic environment, the Bank is poised to reap the benefits of its investment in both digitization and the capacity of its employees to improve service experience.

    Polaris Bank is a future-determining bank committed to delivering industry-defining products, services, and digital platforms across all the sectors of the Nigerian economy. The Bank is a member of the United Nations Environment Programme Finance Initiative (UNEP FI), which seeks to engage the private sector and the global financial sector to help create a financial sector that serves people and the planet while delivering positive impact

  • Starting 2021 Strong, UBA Records 27% PAT Growth, 20.5% ROAE

    Starting 2021 Strong, UBA Records 27% PAT Growth, 20.5% ROAE

    Pan African financial institution, United Bank for Africa (UBA) Plc has released its unaudited results for the first quarter ended March 31st, 2021, showing impressive double-digit growth across most of its major income lines.

    The bank leveraged on modest growth in both interest and non-interest income as well as increased efficiency to deliver an impressive 24% year-on-year growth in Profit Before Tax in the first three months of the 2021 financial year, to N40.6 billion compared with N32.7 billion recorded in the first quarter of 2020.

    Profit After Tax also grew by 26.8% from N30.1 billion in March 2020 to N38.2 billion in the period under review. Interestingly, UBA again sustained its strong profitability recording an annualised 20.5% Return on Average Equity (RoAE) compared to 19.9% in the same period of 2020.

    Driven by a year-on-year growth in interest income, UBA Group recorded another impressive 5.5% percent year-on-year growth in Gross Earnings to close at N155.4 billion for the three month period ending March 2021, compared to N147.2 billion recorded in the first three months of last year 2020.

    The bank’s total assets also rose by 2.5% to N7.9 trillion in the period under review, compared to N7.7 trillion recorded at the end of the 2020 financial year whilst shareholders’ funds grew to N762.4 billion up by 5.3% from N724.1 billion as at FY 2020.

    The Group Managing Director/CEO of the United Bank for Africa (UBA) Plc, Mr. Kennedy Uzoka, expressed satisfaction with the Bank’s performance in the first quarter of 2021, stating that the result reflects UBA’s capacity to sustainably grow earnings even in a highly uncertain macroeconomic environment.

    He added that the robust capital and liquidity positions have positioned the bank as it continues to support its customers across diverse sectors and markets, guided by prudent risk management practices.

    “This impressive 2021Q1 results reflect the capacity of our business to sustainably grow earnings even in a highly uncertain macroeconomic environment. We remain upbeat on the macroeconomic outlook of the countries in which we operate, especially as the COVID-19 vaccine distribution gains traction globally, whilst commodity prices and currencies continue to stabilise. Our robust capital and liquidity positions have positioned us to continue to support our customers across diverse sectors and markets, guided by prudent risk management practices,” The GMD said.

    Uzoka pointed out the bank’s effort towards diligently executing its priorities for the year 2021, as it leverages people, process, and technology to deliver the best customer experience across all its channels and touchpoints, achieving industry leadership and dominance, adding, “The bank is making strong progress in Nigeria where our continuous market share and efficiency gains are translating into higher profits. We are committed to sustaining this strong start throughout the year, leveraging our customer-First (C-1st) philosophy and unparalleled execution to deliver even stronger returns to our esteemed shareholders in 2021 and beyond;” Uzoka said.

    Further breaking down the figures, UBA’s Group Chief Finance Officer, Ugo Nwaghodoh, said, “I am particularly pleased with our annualised return on average equity of 20.5% and return on average asset of 2.0%, as these indices buttress our commitment to delivering sustainable value to our stakeholders. We continued to deploy our balance sheet efficiency and digital-led cost optimisation initiatives to achieve desired outcomes. Cost-to-income ratio improved by 200bps to 60.4% during the period, whilst cost of funds settled at 2.0%, a 130bps reduction from 3.3% in 2020Q1.

    Nwaghodoh expressed confidence that the bank will meet and surpass its target for the remaining three quarters of the year, adding that, “We are confident on the strong prospect for earnings growth, particularly as we are better positioned to consolidate recent market share gains in Nigeria and other geographies where we operate. This result is a strong start for the year, and we are optimistic about sustaining the exciting performance throughout the year and beyond.”

  • NOVA Merchant Bank’s growth trajectory continues, declares N3.52bn profit

    NOVA Merchant Bank’s growth trajectory continues, declares N3.52bn profit

    NOVA Merchant Bank Limited has released its audited results for the financial year ended December 31st2020, recording impressive growth across its major financial lines.

    The Bank declared a profit after tax of N3.49bn in 2020 compared to N1.65bn in 2019 which represents a 112% increase. All the key financial parameters recorded major improvement over the prior year performance; Gross Earnings showed a quantum leap of 130% growth over 2019 and Profit Before Tax at N3.52bn recorded a 135% growth over the 2019 figure of N1.5bn. On a similar note, the Bank recorded a decline in the Cost to Income Ratio from 55% in 2019 to 44% in 2020.

    Customer deposits stood at N89.6bn in 2020 compared to N40.5bn in 2019 while loans to customers grew by 71% to N50bn in 2020 compared to N29.3bn in 2019.

    The Managing Director and Chief Executive Officer, Mr Nath Ude, said, “Our full year 2020 performance is especially gratifying as we achieved such growth amidst the unprecedented nature of the COVID-19 pandemic and resulting macro-economic headwinds.”

    “In 2021, we will continue to build on our strong foundation to significantly scale the business by focussing on exceeding the expectations of our customers through innovative financial solutions while expecting our non-bank subsidiaries to start contributing effectively to the group in line with our strategic intent” Ude further stated.

    The Chairman, Mr Phillips Oduoza stated, “I am particularly delighted to see how the Bank has maintained its growth trajectory and improve its efficiency during such a challenging period.

    Oduoza added “The Bank is well positioned to benefit from the expected upsurge in economic activity and profit from the emerging opportunities this presents as the global economy emerges from the impact of the COVID-19 crisis.”

    NOVA Merchant Bank offers an integrated suite of financial solutions covering Wholesale Banking, Investment Banking, Asset Management, Wealth Management, Trade Services, Transaction Banking, Cash Management and Digital Banking.

  • GTBank announces profit before tax of N238.1bn for 2020

    GTBank announces profit before tax of N238.1bn for 2020

    Guaranty Trust Bank Plc in Thursday released its audited financial results for the year ended Dec. 31, 2020 to the Nigerian and London Stock Exchanges, announcing a profit before tax of N238.1 billion.

    The audited result released by the bank showed that profit before tax increased by 2.8 per cent to N238.1 billion compared with N231.7 billion posted in the comparative period of 2019.

    Net interest income stood at N253.668 billion during the period under review against N291.66 billion in 2019.

    The group’s loan book grew by 10.7 per cent to N1.66 trillion from N1.50 trillion achieved in the corresponding period of 2019.

    Customers’ deposits increased by 38.6 per cent to N3.51 trillion from N2.53 trillion in December 2019.

    Also, loan and advances to customers stood at N1.66 trillion in contrast with N1.50 trillion in 2019.

    Total assets and shareholders’ funds closed at N4.95 trillion and N814.4 billion, respectively.

    Commenting on the financial results, the Managing Director/Chief Executive Officer of the bank, Mr Segun Agbaje, said: “2020 was arguably the most challenging year that the world has faced in decades.

    “In such unprecedented times, we sought to live out the full extent of our values; safeguarding lives and livelihoods for our people, our customers and across the communities where we operate.

    “We were on solid footing going into 2020.

    “The strength, scale and liquidity of our balance sheet, coupled with the quality of our past decisions and the efficacy of our digital-first customer-centric strategy gave us the resilience and flexibility to navigate the economic shocks and market volatility that dominated the year.”

    Agbaje said that amidst the many challenges, the bank remained ardent believers in Africa’s growth potential.

    “Amidst the many challenges that persist, we remain ardent believers in Africa’s growth potential.

    “Our world is increasingly digital, and we see it opening new and exciting opportunities for empowering people and uplifting our communities.

    “With our commitment to deepening customer relationships and intense focus on delivering innovative financial solutions, we enter 2021 well-positioned to lead this new world,” he said.

  • Q3 2020: UBA grows gross earnings to N454.4bn, delivers N90.4bn profit before tax

    Q3 2020: UBA grows gross earnings to N454.4bn, delivers N90.4bn profit before tax

    United Bank for Africa (UBA) Plc, the Pan African financial institution, has announced commendable performance in its unaudited 2020 Third Quarter Financial Results, with impressive growth in Gross Earnings, which rose to N454.4 billion, up from N428.7billion recorded in September 2019.

    According to the report filed with the Nigerian Stock Exchange (NSE) on Friday (20 Nov. 2020), UBA reported a Profit Before Tax of N90.4 billion compared to N98.2 billion recorded at the end of the third quarter of 2019. Similarly, the Bank recorded an after-tax net profit of N77.1 billion, thus putting its annualised return on average equity at 16.4%. Operating income also improved by 10.4% year-on-year to close at N293.7 billion, up from N265.9 billion achieved in the corresponding period of 2019.

    The Bank continues to maintain a very strong balance sheet, with Total Assets of N7.1 trillion, a 26% increase over the N5.6 trillion recorded at the end of December 2019. UBA benefitted largely from its technology-led initiatives targeted at improving customer experience over the past few years, as Customer Deposits leaped to N5.2trillion from N3.8 trillion at the end of the last financial year. The shareholders’ funds remained very strong at N655.3 billion rising by 9.6% from N598.0 billion recorded in December 2019, thus reflecting a strong capacity for internal capital generation and growth.

    Commenting on the results, the Group Managing Director/CEO, UBA Plc, Kennedy Uzoka, said, “In spite of the current turbulence in the operating environment, occasioned by the global pandemic, we have continued to record significant progress in our business segments. Notably, our innovative financial inclusion propositions have helped us moderate cost-of-funds to 3.2% (4.0% in FY 2019), as low-cost deposits (which accounts for 76.2% of our customer deposits) grew 40.8% by the end of the third quarter. Our Direct Sales Agents, Agency Banking Network, and Digital Banking propositions have positioned us at the forefront of financial inclusion across geographies where we operate,” Uzoka stated.

    He pointed out that during the period under review, the Bank was able to provide support to customers across its footprint, assisting them to navigate the negative impact that Covid-19 pandemic has had on livelihoods, businesses and social life, adding that “since March 2020, we have provided transaction fee waivers to customers, rescheduled loans where business cashflows have been impacted, and donated generously to governments and communities to help catalyse a comprehensive pan-African response to the fight against the COVID-19 Pandemic.”

    Speaking on the expectations for the rest of the year, Uzoka said, “whilst the outlook for the rest of 2020 is expected to remain challenging, our diversified model provides sufficient resilience, enabling us to continue to delight our customers with innovative banking products within our robust risk management framework.”

    Also throwing more light on the Bank’s financial performance and position, the Group CFO, Ugo Nwaghodoh said: “we achieved substantial growth in the underlying business, having grown loans by 15.6% (to N2.4trillion) and deposits by 35.7% (to N5.2trillion) within the period as interest and fee income from loans settled at N172.9 billion and N8.9billion respectively. Credit impairment charges increased by N4.8billion YoY (to N11.5billion), providing adequate reserve for impaired loans, which should help moderate the need for further reserves later in the year. NPL ratio and cost-of-risk settled at 5.2% (5.3% in FY 2019) and 0.64% (0.9% in FY 2019) respectively.

    “As we deploy rigorous balance sheet management strategies to protect our margins, we will sustain cost discipline to push cost-to-income ratio to our desired sub-60% target in the short-term. The Group continues to target 15% loan growth, a NIM of >6.0% and ROE of >16% for the 2020 financial year, but targets remain subject to the evolution of the COVID-19 pandemic and its implications on the operating environment”, the GCFO explained.