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UBA highlights impact of its African subsidiaries to earnings

By BusinessNews Staff on April 4, 2015

The United Bank for Africa (UBA) Plc has said that the consolidation of it operations across Africa has had a positive impact on the group’s financial performance as seen in its recently released audited 2014 full year results.
UBA, which recently restructured its operations, carving out UBA Africa as a separate business division headed by a chief executive officer specifically stated disclosed it there have been significant improvement in the financial contribution of its African subsidiaries to the Group’s balance sheet.
A statement pointed out that the pan-African bank which has operations in 18 African countries outside Nigeria, has continued to increase its contribution to the Group, recording a higher contribution in the Group’s N290 billion earnings in 2014 compared to the previous years. This, it added reflects the increasing penetration of the UBA brand across African markets.
The 2014 full year results of the UBA Group showed that UBA Africa grew its profit by 34 per cent in the year, a remarkable achievement despite challenging macroeconomic environment in most of the Sub-Saharan African markets.
“UBA is gaining critical mass across its target markets and it continues to leverage her innovative products to increase the share of customers’ wallet in the African banking space,” the Group Deputy Managing Director/CEO UBA Africa, Mr. Kennedy Uzoka explained.
Furthermore, the statement noted that UBA Africa’s earnings received a boost from enhanced service channels, product offerings and customer service with a number of its subsidiaries in Africa becoming stand out performers in their respective countries.
“For example, UBA Senegal has been ranked the ‘Best Bank’ in the country for three years in a row, just as UBA Cameroun is ranked the Best Bank in its host country for four consecutive years,” it added.
“We are pleased with the current year performance, which reflects our commitment to deliver value to all stakeholders. We are optimistic on the years ahead and will profitably grow our African subsidiaries by focusing on the viable yet safe sectors of the respective countries” explained Uzoka.
Uzoka also noted that the remarkable outlook of UBA Africa reinforces the revenue and risk diversification benefit that the UBA Group offers its shareholders
In the full year results released by UBA, the bank recorded a profit before tax of N56.2 billion and a profit after tax of N48 billion. Earnings received a boost from both inlterest and non-interest income. This, it maintained showed the bank’s diversified and stable income base.
Interest Income rose 5.91 per cent to N197 billion in December 2014 from N186 billion in December 2013, while non interest income rose by 18.17 per cent to N93.3 billion from N79.0 billion.

[ThisDay]

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