Connect with us

BUSINESS

UBA shows resilience as Gross Earnings, profit hit N375bn, N79bn

Published

on

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.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

BUSINESS

Diamond Bank confirms merger talks with Access Bank

Published

on

Diamond bank has confirmed its merger with Access Bank Plc, stating that the development is in the best interest of all stakeholders including, employees, customers, depositors and shareholders.

In a statement signed by Chioma Afe, Head, Corporate Communications of Diamond Bank, and made available to THE WITNESS on Monday, the lender said that the proposed merger would involve Access Bank acquiring the entire issued share capital of Diamond Bank in exchange for a combination of cash and shares in Access Bank via a Scheme of Merger.

 

Read the full statement below:

The Board of Diamond Bank Plc (“Diamond Bank”) today announces that following a strategic review leading to a competitive process, the Board has selected Access Bank Plc (“Access Bank”) as the preferred bidder with respect to a potential merger of the two banks (“the merger”) that will create Nigeria and Africa’s largest retail bank by customers.

The Board of Diamond Bank believes that the merger is in the best interest of all stakeholders including, employees, customers, depositors and shareholders and has agreed to recommend the offer to Diamond Bank’s shareholders. Completion of the merger is subject to certain shareholder and regulatory approvals.

The proposed merger would involve Access Bank acquiring the entire issued share capital of Diamond Bank in exchange for a combination of cash and shares in Access Bank via a Scheme of Merger. Based on the agreement reached by the Boards of the two financial institutions, Diamond Bank shareholders will receive a consideration of N3.13 per share, comprising of N1.00 per share in cash and the allotment of 2 New Access Bank ordinary shares for every 7 Diamond Bank ordinary shares held as at the Implementation Date. The offer represents a premium of 260% to the closing market price of N0.87 per share of Diamond Bank on the Nigerian Stock Exchange (“NSE”) as of December 13, 2018, the date of the final binding offer.

Immediately following completion of the merger, Diamond Bank would be absorbed into Access Bank and it will cease to exist under Nigerian law. The current listing of Diamond Bank’s shares on the NSE and the listing of Diamond Bank’s global depositary receipts on the London Stock Exchange will be cancelled, upon the merger becoming effective.

Diamond Bank expects the transaction to complete in the first half of 2019.

Uzoma Dozie, the Chief Executive Officer of Diamond Bank, said: “The proposed combination with Access Bank will create one of Africa’s leading financial institutions.

There is clear strategic rationale for the proposed merger and strong complementarities between the two institutions. While Diamond Bank has pioneered Nigeria’s largest technology-led retail banking platform, Access Bank is one of Nigeria’s leading full-service commercial banks. Consolidation in the Nigerian banking industry is an inevitable, natural progression in a sector where the gap between Tier 1 and Tier 2 banks has been widening and scale has become critical; where technology will disrupt the traditional business model while enabling broader financial inclusion.

The board of Diamond Bank believes that the proposed combination of the two operations provides an exciting prospect for all stakeholders in both businesses and will create a financial

institution with the scale, strength and expertise to capitalise on the significant opportunities in Nigeria and sub-Saharan Africa more broadly.”

Herbert Wigwe, CEO of Access Bank, said: “Access Bank has a strong track record of acquisition and integration and has a clear growth strategy. Access Bank and Diamond Bank have complementary operations and similar values, and a merger with Diamond Bank, with its leadership in digital and mobile-led retail banking, could accelerate our strategy as a significant corporate and retail bank in Nigeria and a Pan-African financial services champion. Access Bank has a strong financial profile with attractive returns and a robust capital position with 20.1% CAR as at 30 September 2018. We believe that this platform, together with the two banks’ shared focus on innovation, financial inclusion and sustainability, can bring benefits to Access Bank and Diamond Bank customers, staff and shareholders.”

Exotix Capital acted as international financial advisor to Diamond Bank, and Templars acted as Nigerian legal counsel.

Continue Reading

BUSINESS

Unity Bank wins CBN ‘Sustainable Transaction of the Year in Agriculture’ Award

Published

on

Unity Bank Plc has won the Central Bank of Nigeria (CBN) 2018 sustainable banking award, clenching the award for ‘Sustainable Transaction of the Year in Agriculture’.

The Bank won the coveted award for its compliance with the Sustainable Banking Principles as it relates to the management of Environmental and Social Risk set out by the CBN for adoption by Nigerian Banks, Discount Houses and Development Banks.

While presenting the award to Unity Bank at the just concluded Bankers’ Committee held in Lagos, the apex bank commended the efforts of the lender in promoting the Anchor Borrowers Program (ABP), Rice Farmers Association of Nigeria (RIFAN) project, adding that the bank deserves the award because of the role it played in actualization and management of this audacious project.

The active involvement of the Bank in various financing schemes has resulted in creating huge social and economic impact on the income of households involving over 270,000 participating small holder farmers thereby boosting not only the gross domestic product but also helping to achieve self-sufficiency in food production.

Commenting on the development, the Managing Director/Chief Executive Officer of Unity Bank Plc, Mrs. Tomi Somefun dedicated the award to all farmers and businesses in agriculture value chain, stressing that: “We have successfully on-boarded over 90,000 hitherto financially excluded farmers and generated bank verification number for them to facilitate financial and banking transaction. Capacities of about 60 agro input suppliers were expanded through provision of facilities and financial advisory services’’.

“Unity Bank’s Environmental and social Management Program covers comprehensive business operations that minimizes adverse impact on the environment in the scope of its business activities.”

“The Code of Corporate Governance requires companies to act in an environmentally and socially responsible manner and Unity Bank has domesticated the principles in its commitment to save the environment from degradation or pollution.”

Speaking further, Somefun disclosed that the Bank’s environmental management policies and strategies comprehensively covers priority areas that encourages bio-diversity, green initiatives, recycling of waste, reduction of carbon emission geared towards promoting sustainability, conservation and environmental protection.

Unity Bank Plc is a niche player in Agricultural financing in Nigeria, with active participation in most government intervention schemes and support for key policy initiatives. These are aimed at driving growth and transformation of Nigeria’s Agricultural economy.

Continue Reading

BUSINESS

NASCON launches new Dangote Classic Seasoning cubes

Published

on

L-R, NASCON allied industries plc group Managing Director, Paul Farer, NASCON allied industries plc, Dangote season's Brand Ambassador, Hadiza Gabon, NASCON allied industries plc, Executive director commercial, Fatima Aliko-Dangote, Dangote Industries limited, Executive Director, Halima Aliko-Dangote, at the unveiling of the New Dangote Seasoning Classic Cube, in Kano, Kano State on 12th December 2018 .

…Says its’ meets complete nutrition need of the people

Management of the NASCON Allied Industries Plc, a subsidiary of the Dangote Industries Limited has pledged its commitment towards a healthy living by the people by producing products that meet the physical and mental needs of the people.

Executive Director, Commercial NASCON Allied Plc, Fatima Aliko Dangote gave this pledge in Kano during the unveiling of new Classic Seasoning Cube in addition to its array of food seasonings already in the market.

The new product which the NASCON boss described as a product of thorough and painstaking research into the preference of the people in the seasoning sub sector of the food industry came in the wake of a similar launch recently, of new Curry Powder and Stew Mix from the stable of NASCON.

Fatima Aliko Dangote said she had no doubt in her mind that the new product would be an instant hit given its unique taste, flavor and aroma noting that the new classic seasoning cubes and stew mix were created with a special blend of herbs and spices to give meals that unique taste and great aroma.

She described the new classic seasoning as a new innovation birthed after years of consumer led research and development, and urged distributors, marketers, eateries and consumers to immediately key into it.

Lacing her remarks with the Hausa local dialet, while explaining the strengths of the product, she described the seasoning as Karshen Magana meaning the real deal and that it is second to none in the market throughout the country.

According to her, the management of NASCON decided to go into the research for the new product bearing in mind that wellbeing is reduced by poor diet yet it is expensive to be unhealthy.

Good nutrition, she stated maintained immune system and delays the effect of aging because it reduces the risk of chronic disease while poor diet reduces physical and mental health. She therefore urged women to try the new seasoning cubes, stew mix and curry powder, as they would ensure meal moments are great moments.

Fatima Aliko Dangote assured that the products would be launched in other parts of the country very soon, adding that despite the high innovative quality, they are affordable and available with various promotional items to be given out to the distributors and consumers.

In his remark, the Group Managing Director of NASCON Allied Plc Mr. Paul Farrer assured that the new product is a high margin product that would help ensure distributors and customers remain profitable, describing the new product as premium but affordable to the consumers.

The Company used the occasion to introduce its Brand Ambassador to the customers, in the person of renowned Kannywood multi-talented actress Hadiza Gabon, who described the Dangote Seasoning cubes as a seasoning with great flavor, and good taste while recommending it to all women in Nigeria.

Speaking to media men in an interview at the event, NASCON key distributor, Alhaji Hamisu Rabiu of Hamis Investment in Kano described NASCON products as fast moving and of good quality. He urged other distributors and retailers across the country to immediately key into the new classic cube, Dangote stew mix and Dangote curry powder.

At the launch Wednesday about 300 distributors, wholesalers and retailers were excited and most express optimism that it will up the market of NASCON.

Head of Marketing of NASCON Allied Industries Plc, Mr. Olusegun Ajala expressed optimism that the “innovative brand will up the company’s market share exponentially because of its unique taste and aroma.

Continue Reading
Advertisement

Facebook

Advertisement
Advertisement

Trending