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UBA Shows Resilience As Gross Earnings Hit N375billion, With Group Profit Of N79billion

Gbemileke Ajayi

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United Bank for Africa Plc, the pan African financial institution with presence in 20 African countries has announced its unaudited 2018 Third Quarter Financial Results, with impressive growth in Gross Earnings, which berthed at N374.8 billion, an 12.3 percent increase when compared to N333.9 billion recorded in the corresponding period of 2017.

According to the report filed to the Nigerian Stock Exchange(NSE) on Tuesday, UBA’s net operating improved 1.7 percent year-on-year to N227.7 billion, when compared to N224 billion achieved in the similar period of 2017.

Amidst inflationary pressures and uncertainties undermining the business environment in Nigeria and a few other countries in Africa, UBA’s operating expenses only increased by 2.3 percent to N149.1 billion, compared to N145 billion recorded in the same period of last year. The low cost profile can be better appreciated when put in the perspective of double digit inflation rate in Nigeria. Overall, the Bank posted a Profit Before Tax of N79.1 billion whilst Profit After Tax stood at N61.7 billion. This profit performance puts the Bank’s annualized return on average equity at 16% and 20% at pre-tax and post-tax profit level respectively.

The Bank continues to maintain a very strong balance sheet, with Total Assets of N4.51 trillion, an impressive 10.8 per cent year-to-date rise over the N4.07 trillion total asset recorded as at December 2017. Another strong indication of the growth of the Bank and more so, acceptance of the franchise across Africa is the remarkable 16.2 percent year-to-date growth in Customer Deposits, which grew to N3.18trillion, compared to N2.73 trillion as at December 2017. The shareholders’ fund remained very strong at N509.3 billion, even as the implementation of International Financial Reporting Standard (IFRS) 9, moderated the Group’s equity by 3.8% year-to-date.

Commenting on the result, the Group Managing Director/CEO, UBA Plc, Kennedy Uzoka, said; “We achieved a number of strategic imperatives during the quarter and committed more investments in the future of the business – building a solid foundation for sustainable and superior return to our shareholders”

Uzoka said that he is pleased that the Bank’s Virtual Banking Chatbot, Leo, which debuted on Facebook earlier in the year, was successfully launched on WhatsApp during the quarter. “This new channel offering, which enables our customers to fulfil their banking transactions through simple chat commands, is another premier initiative in our suite. The early pay-offs are quite compelling – recent customer acquisitions and broader transaction volume growth are exciting leading indicators that reinforce our confidence in these novel channels,” he said.

“Our franchise is increasingly renowned for financial solution and I am happy with the consistent growth in our businesses across the continent. We have grown balance sheet by 11% year-to-date to over N4.5 trillion. Notwithstanding the statutory-induced cost growth, our earnings proved resilient, as we recorded nine-month profit before tax of N79 billion. Notwithstanding the macro-risk arising from upcoming elections in Nigeria, our single largest market, we are confident of finishing the year strong,” Uzoka concluded.

Also speaking on UBA’s financial performance and position, the Group CFO, Ugo Nwaghodoh said that despite the relative volatility in the third quarter of 2018, especially in the face of U.S. interest rate hikes and concerns over global trade war, which has disrupted the interest and exchange rate environment in many African countries, the bank remains on track to deliver its earnings target for the year.

He said “We remain committed to our five-year plan of working down CIR to 50%, which we consider to be a normalised medium-term CIR. Overall, we closed the third quarter with a post-tax RoAE of 16% and the Group remains well capitalized and liquid, as reflected in the Group’s capital adequacy of 21% and Bank’s liquidity ratio of 53%.”

UBA is one of Africa’s leading banks with operations in 20 African countries. It also has presence in the global financial centres; London, New York and Paris. UBA provides banking services to more than 15 million customers globally, through diverse channels.

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BUSINESS

12 Finalists Selected In UBA Foundation National Essay Competition 2018 Amidst Increase In Entries

Gbemileke Ajayi

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UBA Foundation, the corporate social responsibility arm of the United Bank for Africa (UBA) Plc, has announced the twelve finalists for the 2018 edition of its annual National Essay Competition.

The 12 finalists will sit for the second round of the competition, where three winners will emerge after undergoing supervised essay writing on a different topic from the original entry, on Saturday, November 25, 2018, at the Bank’s headquarters in Lagos

The 12 finalists were selected after a very tedious grading process undertaken by a distinguished panel of judges made up of top professors from reputable higher institutions from the four geographical zones in Nigeria. The students were graded using some parameters including grammar, articulation, arrangement, handwriting, punctuation and strength of argument.

Interestingly, this year’s edition recorded the highest participation, with more entries coming in from various secondary schools across the country – even after entries had been closed. In all, over 6,000 entries were received for this year’s edition.

The names of the finalists in no particular order are: Ugwuagbo Chinweizu of Lydia of Shalom Academy Nsukka; Israel-Olusegun Daniel of The Fountain Comprehensive Secondary School, Ogun State; Alo Praise Ayomiposi of Lagos African Church Grammar School, Lagos State; Adeyemi Abdul-Lateef of Pivic Colege Iba, Lagos State, Adetola Ibukunoluwapo from Vivian Fowler Memorial College, Lagos; Odjegba Omesiri Divine of International High School, Delta State; Hezekiah Tiffany Uruaku of Faith Academy Rivers State.

Others are Ozemoka Halimat Emesomi, University Preparatory Secondary School, Edo State; Idogbo Sharon O. of Holy Child College, Lagos; Adiankpo Ini- Iso Christopher of Nigerian Christian Institute, Uyo and Komolafe Justice Babatunde of Kingsfield College, Lagos State.

The essay competition, which targets senior secondary school students is organized annually, as part of UBA Foundation’s Education initiative aimed at promoting the reading culture and encouraging healthy and intellectual competition amongst secondary school students in Nigeria and across Africa.

This year, the topic is “What is the biggest environmental issue you think your generation will face? How can it be avoided and how can it be solved?”

The Chief Executive Officer of UBA Foundation, Mrs. Bola Atta, who announced the new prizes explained that the first prize for the UBA National Essay Competition is a N2 million educational grant for the winner to study in any African university of his or her choice, a 100% increase from N1m which was awarded last year, while the second and third prizes have increased to N1.5 million and N1m educational grants respectively, up from N750,000 and N500,000 previously obtained.

Atta also explained that the choice of topic for this year’s competition is one that helps promote creative and analytical thinking in students and encourages them to be problem solvers.

UBA Foundation’s National Essay Competition has been taken to other African countries including Ghana and Senegal as well as Mozambique and Kenya. The initiative will spread to more African countries in 2019.

UBA is one of Africa’s leading banks with operations in 20 African countries. It also has presence in the global financial centres; London, New York and Paris. UBA provides banking services to more than 15 million customers globally, through diverse channels.

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Union Bank Receives Multiple Awards At 2018 Marketing World Awards Ceremony

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Union Bank has received the ‘Marketing Campaign of the Year’and ‘Innovative Financial Brand of the Year’ awards at the 2018 Marketing World awards.

The awards were officially presented at a ceremony that held recently at the Movenpick Ambassador Hotel in Accra, Ghana and brought together top practitioners and stakeholders from the African integrated marketing communications industry.

Now in its 8th year, the annual MarketingWorld awards were established to recognize and celebrate top individuals and organizations across Africa who have developed and implemented exceptional integrated marketing campaigns during the year in view.

Union Bank received the ‘Marketing Campaign of the Year’ award for its ‘Clear Your Doubt’ campaign known by its popular tagline- ‘Don’t be an Uncle Thomas’, while the ‘Innovative Financial Brand of the Year’ award was given in recognition of the institution’s inventive approach to delivering integrated marketing campaigns.

Thanking the award organizers, Union Bank’s Head of Corporate Communication and Marketing, Ogochukwu Ekezie-Ekaidem also said;

“We are pleased that our current campaign continues to resonate deeply with audiences across Nigeria and beyond. Union Bank’s goal was to elevate the voice of the everyday Nigerian for whom we have enabled success for over 100 years.

We thank the organisers of the Marketing World Awards for recognising our brand journey and honouring our efforts with these top awards.”

According to a statement by InstinctWave, the organizers of the Marketing World awards:

These brand awards are presented to celebrate the collective efforts, and to affirm the hard work, innovation, and dedication of those at the forefront of this dynamic industry’.

Union Bank also recently launched an impressive short film tagged ‘Enabling Success’. The two-minute television commercial communicates strong themes of introspection, perseverance, healing, and hope of a better future for Nigeria. Since its launch in October, the production has gathered millions of views across various online platforms, inspiring hope and action in millions of Nigerians.

The Bank’s refreshed brand and impressive marketing campaigns have earned it several brand awards including two international Gold awards at the Transform Awards MENA 2016 for ‘Best Brand Development to Reflect Changed Mission / Vision / Positioning’ and ‘Best Visual Identity from the Financial Services Sector.’ It also received the ‘Brand evolution of the Year’ and ‘Iconic Brand of the Year’awards at the 2017 Marketing World awards and earlier this year, emerged recipient of a Silver Category Pitcher award for its Uncle Thomas radio commercial.

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BUSINESS

Zenith Bank Dominates Trading On NSE

Gbemileke Ajayi

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Zenith International Bank on Wednesday dominated the activity chart on the nation’s bourse, accounting for 64.04 percent of the total volume of shares traded.

The News Agency of Nigeria (NAN) reports that the bank sold 288.27 million shares valued at N6.68 billion.

Consequently, investors bought and sold 450.14 million shares worth N9.39 billion achieved in 2,858 deals, representing an increase of 200.79 percent.

This was in contrast with a turnover of 149.65 million shares valued at N2.79 billion transacted in 3,063 deals on Tuesday.

Further analysis of the activity chart shows that FBN Holdings came with an exchange of N40.95 million shares worth N303.49 million.

Guaranty Trust Bank traded 33.74 million shares valued at N1.26 billion, while FCMB Group transacted 11.24 million shares worth N18.56 million.

Access Bank sold a total of 9.39 million shares valued at N74.14 million.

However, the market indices recorded marginal loss, dropping by 0.14 percent due to price depreciation.

Specifically, the All-Share Index dipped 45.73 points or 0.14 percent to close at 32,108.30 against 32,154.03 recorded on Tuesday.

Also, the market capitalization which opened at N11.738 trillion shed N16 billion or 0.14 percent to close at N11.722 trillion.

Seplat topped the losers’ chart, dropping by N2 to close at N638 per share.

Lafarge Africa trailed with a loss of N1.70 to close at N15.70, Presco declined by N1.25 to close at N64.50 per share.

Dangote Sugar Refinery depreciated by 45k to close at N13, while Guaranty Trust Bank shed 25k to close at N37.05 per share.

Conversely, Nigerian Breweries led the gainers’ table, growing by 50k to close at N81.50 per share.

Fidson followed with a gain of 40k to close at N4.90, while Redstar appreciated by 30k to close at N4.50 per share.

United Bank for Africa added 20k to close at N8, while Zenith Bank increased by 15k to close at N24 per share.

 

(NAN)

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