UBA increases profit by 7.64% in nine months

uba-1United Bank for Africa Plc has reported an increase of N3.712 billion represented 7.64 per cent in profit after tax for nine months 2016.

The lender in consolidated financial statements for the nine months ended 30 September 2016 released to the Nigerian Stock Exchange (NSE) in Lagos improved its profit after tax from N48.557 billion to N52.269 billion.

Also, its profit before tax rose from N57.366 billion to N61.555 billion, translated to an increase of N4.189 billion or 7.30 per cent.

Its gross earnings jacked up from N245.492 billion to N265.527 billion at the end of nine months 2016. This is N20.035 billion or 8.16 per cent increase.

The total assets of UBA in nine months stood at N3.479 trillion from N2.753 trillion it made at the end of 2015 financial year. Its total liabilities also rose from N2.420 trillion in 2015 December to N3.045 trillion at the end of nine months 2016.

UBA Plc however retained 19.69 per cent of its gross earnings at profit after tax at the end of the reviewing period compared to 19.78 per cent retained during the same period of 2015.

The Tier I bank increased its fees and commission income which comprises credit-related fees and commissions, account maintenance fees, COT, pension custody fee, E-banking income, funds transfer fee, trade transactions income, remittance fee income, commissions on transactional services and other fees and charges from N47.385 billion to N56.215 billion.

However, UBA loans and advances to customers in the nine months of 2016 rose by N503 billion, from N1.037 trillion as at December 31 2015 to N1.540 trillion at the end of nine months 2016. It reduces its loans and advances to other banks from N14.600 billion as at December 2015 to N1.623 billion during the nine months 2015.

The bank received N2.497 trillion as deposits from customer in nine months from N2.082 trillion at the end of previous year end. It also received N93.227 billion from other banks for the same purpose in nine months 2016 surged from N61.066 billion at the end of December 2015.

Its earnings per share rose from N1.43 kobo to N1.50 kobo, represented 4.90 per cent increase.

The impressive nine months result however prompted shareholders to demand for UBA shares which led to increase in its share price on the day it released the result from N4.10 kobo to N4.18 kobo per share.