United Bank for Africa Plc, 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) yesterday, 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 increased by 2.3 percent to N149.1 billion, compared to N145 billion recorded in the same period of last year. 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 per cents at pre-tax and post-tax profit level respectively.
The bank’s Total Assets stood at N4.51 trillion, a 10.8 per cent year-to-date rise over the N4.07 trillion total asset recorded as at December 2017, while customers’ deposit was up by 16.2 percent year-to-date growth growing to N3.18trillion, compared to N2.73 trillion as at December 2017. The shareholders’ fund remained strong at N509.3 billion, even as the implementation of International Financial Reporting Standard (IFRS) 9, moderated the Group’s equity by 3.8 per cent year-to-date.
Commenting on the result, the Group Managing Director and Chief Executive of 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 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.
“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 per cent 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 stated.
Also speaking on UBA’s financial performance and position, the Group Chief Financial Officer, 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 per cent, which we consider to be a normalised medium-term CIR. Overall, we closed the third quarter with a post-tax RoAE of 16 per cent and the Group remains well capitalized and liquid, as reflected in the Group’s capital adequacy of 21 per cent and Bank’s liquidity ratio of 53 per cent.
Senate investigates banks for not remitting taxes on deposits
The Senate on Tuesday directed its Committees on Banking, Insurance and other Financial Institutions, to investigate alleged non-remittance of taxes on bank deposits and dividend payments.
The Witness learnt that the it also asked the committees to report back within four weeks.
This followed the adoption of a motion by Senator Uche Ekwunife (PDP, Anambra).
Ekwunife said: “It has been discovered that the Central Security & Clearing System, CSCS and banks in Nigeria do not remit withholding tax on bank deposits and dividends to state government as and when due.
“Most state governments are unable to pay salaries and meet their financial obligations as a result of poor and dwindling revenue.
“Billions of naira are being held by banks either in form of under remittance or non remittance of withholding revenue.”
CBN to banks: You must seek approval before sacking staff
The Central Bank of Nigeria, CBN has said banks are no longer allowed to sack more than five staff without its approval.
This was part of the communiqué released by the Bankers Committee after its meeting on Friday.
The committee, in a circular signed by Director, Financial Markets Department, CBN, Angela Sere-Ejembi, emphasized that all banks should send a sample of Contract Letter issued to outsourced staff + SLA with the company being used to run outsourced staff.
Dabiri-Erewa, others charge Africans in Diaspora to remember their roots
It stated, “Banks should note and be guided by the CBN circular in respect of laying off staff that is more than five. This requires apex bank’s notification and approval going forward.”
The Bankers’ Committee had said the mass sacking in banks would be reduced in the shortest time possible.
The committee noted that while it was working on how to reduce the level of job losses in the sector, there would always be reasons people would have to be sacked from their workplaces.
It explained that while the decision to sack bank workers had elicited a lot of sentiments from both the public and private sectors of the economy, the banks understood the implications of having to relieve workers of their jobs in view of the current economic situation in the country.
Ecobank Nigeria to host Regional Trade Forum 2020
Ecobank Nigeria is set to host its 2020 Regional Trade Forum in Lagos.
The Witness gathered that the forum taking place in March, will be a two-day event, providing the opportunity for exporters and importers within the African region to exhibit their products in a marketplace scenario with panel discussions by highly experienced and diversified stakeholders and leaders of thought in the industry.
Ecobank Nigeria is a member of the pan African banking group with unparalleled Africa wide Network Advantage across 33 countries catering for businesses and providing world class trade services to its customers. The Ecobank Group network has over 30 years been enhancing the financial integration of the continent. The Group provides solutions to facilitate trade in the various trade corridors and groupings across Africa
Announcing the Trade Forum in Lagos, Sunday Abah, Head Trade Finance of Ecobank Nigeria said Ecobank is using the forum to unveil its comprehensive trade solutions to its existing and prospective customers alike by sharing the various payment methods available to facilitate cross border trade throughout its network across Africa. According to him, Ecobank recognizes the role of exporters and importers in driving economies through trade.
“By creating a networking forum for importers and exporters via the trade exhibition slated for the first day of the forum, the Bank extends support to stakeholders in export and import businesses.
“Ecobank’s trade products and solutions are designed around two broad areas: Trade finance which enables customers benefit from adequate and well mitigated credit facilitation in the area of Import finance, export finance, bill discounting, trade loans, distributor finance, structured trade and commodity finance amongst others; also we do Trade Services, which gives our customers the advantage of speedy turnaround time and error free processing of Import Letters of Credit, Import collections, Customs bonds, Export collections and regional trade services amongst others,” he noted.
Ecobank’s unique intra-Africa trade solutions enable settlements of trade transactions and mitigation of payment risk; provide regional solutions and enable exporters obtain payment guarantees without the need for a letter of credit and its related costs to the importer. Ecobank works closely with clients in reviewing key factors regarding transactions processing, settlements, financing, and risk mitigation as well as credit enhancement. The bank boasts of a unique and large Pan-African platform that positions it to support trade at all levels. Its technology platform is designed to help unlock the opportunities of the continent through standardization across 33 countries, while fueling regional integration, trade and investment across borders.
The Ecobank Africa Trade Forum is expected to attract hundreds of guests and participants. Leaders from across Ecobank Group will also be attending to share their market specific trade knowledge and information.
THE NEWS1 day ago
Bayelsa: Court to deliver judgment in APC’s request to review Bayelsa judgment
THE NATION2 days ago
Truth about the ‘Killings’ at Benin-Ore road by herdsmen over the weekend
THE NEWS2 days ago
Police dismiss SARS officer involved in footballer, Tiyamiyu’s death
THE NATION1 day ago
Presidency recalls sacked aides of VP Osinbajo
THE NEWS1 day ago
Bayelsa: Supreme Court upholds judgement sacking APC’s David Lyon
THE NEWS1 day ago
Buhari’s minister in alleged forgery, fraud scandal
INVESTIGATION2 days ago
REVEALED: Why NSA Monguno did not attend Service Chiefs’ meeting
Uncategorized2 days ago
N400m fraud: Olisa Metuh bags 7-year jail term