The African World Bank, United Bank for Africa (UBA) Plc, has announced its audited results for the full year ended December 31, 2021, reporting impressive performance across key financial metrics.
The 2021 financial result filed by the bank on the Nigerian Stock Exchange (NSE) on March 4, 2022, showed that gross profits increased significantly to $1.6 billion, an increase of 7% from $1.5 billion recorded at the end of fiscal 2020. .
Total assets grew 11% to an all-time high of $20.1 billion in the year under review, from $18.1 billion in 2020, marking the first time that the assets of the Bank will cross the 8 trillion naira mark.
Despite the enormous challenge and slow economic recovery in most of its countries of operations, UBA’s pre-tax profit was impressive with growth of 20.3% to $373.8 million from $310. $.8 million at the end of fiscal year 2020; while after-tax profit rose 8.7% to $289.9 million in 2021 from $266.6 million recorded the previous year.
Similarly, net loans increased 7.7% to $6.7 billion, while customer deposits increased 12.2% to $15.0 billion from $13.4 billion. dollars for the corresponding period of 2020, reflecting increased customer confidence, improved customer experience, the successes of the company’s ongoing transformation. program and the deepening of its retail banking franchise
In the year under review, the bank’s operating profit rose 10% to $1.1 billion from $984.3 million a year earlier, while operating expenses closed the period to $681.4 million.
In its usual tradition of rewarding shareholders, the bank has proposed a final dividend of $0.001922 for each common share of $0.001201 for the year ended December 31, 2021. The final dividend which is subject to affirmation shareholders at its annual general meeting will raise the total dividend for the year to $0.002403 since the bank had paid an interim dividend of 20 kobo earlier in the year.
Commenting on the result, Group Managing Director/CEO Kennedy Uzoka said that despite the tough and challenging operating environment, UBA continues to deliver significant performance,
He said: “The year 2021 can best be described as a year of global recovery; Economies around the world have started to see early recoveries as supply chains recover from the devastating disruptions suffered in 2020.
As a result, UBA recorded remarkable revenue growth of 7% to $1.56 billion and profit before tax (PBT) of $367,856.15 up 20.3% from last year. ‘last year. Net loans and advances increased 7.7% to $6,727,610.81, with exposure primarily to resilient economic sectors including oil and gas, agriculture and manufacturing. Customer deposits increased by 12.2%, crossing the $14,416,308.88 mark, to reach $15,377,396.14.
The GMD explained that the quality of UBA’s portfolio, as well as the strength of the bank’s credit risk management frameworks and policies, remain the foundation of the positive results the bank has recorded over the years, adding that the current performance highlights UBA’s relentless customer focus and leveraging its key strategic levers – people, process and technology.
“Looking ahead, I am particularly excited about our ongoing business transformation program, designed to improve the bank’s process agility, service delivery and customer experience. We are also making significant investments in advanced technology and cybersecurity, to keep our innovative digital banking offerings above the curve, as we equip and revamp our human resources to compete and win in a rapidly changing landscape. . This will ensure that the bank continues to achieve respectable revenue and earnings growth over the medium to long term,” the GMD said.
UBA Group Chief Financial Officer Ugo Nwaghodoh, who corroborated the GMD’s comments, said, once again, the bank has shown resilience. It achieved significant growth and strengthened its balance sheet despite the slow economic recovery that characterized 2021.
“Through active and diligent asset and liability management, the bank was able to protect its net interest margin and reduced the cost of funds (CoF) by 70 basis points to 2.2% from 2.9% the previous year.
According to him, the group’s solvency ratio at 24.9% was well above the regulatory minimum required and reflects a strong capacity for business growth. “The Group’s non-performing loan ratio improved further to 3.6% from 4.7% at the end of 2020. This is a testament to the quality of UBA’s loan portfolio, although the bank remains relentless in its determination to bring down the cost/income ratio, which stood at 63.0% at the end of the year.
Nwaghodoh added that the bank has made further progress in growing its business and capturing market share in its pan-African operations, with the region accounting for 63.2% of the Group’s profitability, up from 55.4% in 2020; Loans and advances as well as deposits in the region also increased by 14.5% and 27.3% respectively compared to the previous year.
In his closing remarks, the CFO said, “We recognize the changing competitive landscape and are proactively positioning ourselves to consistently achieve our strategic objectives and our commitment to shareholders. »
United Bank for Africa Plc is Africa’s global bank, providing banking services to more than twenty-five million customers, through more than 1,000 sales offices and customer touch points in 20 African countries. With a presence in the United States of America, the United Kingdom, France and more recently the United Arab Emirates, UBA connects people and businesses across Africa through retail; commercial and corporate banking; innovative cross-border payments and remittances; trade finance and ancillary banking services.