UBA’s half-year profit tops N70 billion on growth across key income streams

United Bank for Africa (UBA) delivered a larger bottom line of N70.3 billion for the year’s first half with improvement in the cash earned through interest particularly to thank for it as well as that derived from other key income sources.

The audited financial report of Nigeria’s fourth biggest lender issued Thursday shows gross earnings totalled N375.8 billion, meaning revenue was 18.9 per cent bigger when viewed in proportion to the figure recorded a year earlier.

Interest in UBA’s shares on Thursday was at its highest since at least 26 August, the stock trading 67.8 million units after the release of the financials and as the announcement that the corporation would pay an interim dividend of N0.20 followed.

That is equivalent to a payout of above N6.8 billion.

The sentiment spurred the share price up by 1.4 per cent to N7.30 at market close.

Spiking by 30.1 per cent to N96.4 billion, fees and commission had its growth anchored on improvement in credit-related fees and commission, itself increasing more than two times over.

Other operating expenses at N96.7 billion accelerated by as much as 22.6 per cent year on year and this, combined with cost pressures, limited constrained net profit from increasing at the same pace as revenue.

The pan-African lender incurred this time around impairment charge 258 per cent greater than it did a year ago as it was obliged to earmark N11.8 billion of its turnover to cover loans not likely to be paid back borrowers.

Pre-tax profit enlarged by 12.6 per cent to N85.7 billion; profit after tax by 16.1 per cent to N70.3 billion.

UBA’s outstanding shares stand at 34.2 billion, while its market value as of Thursday was N249.7 billion.

Its total assets within the review period advanced from N8.5 trillion to N9 trillion.