MD, UBA, Phillips Oduoza
By Goddy Egene
The Group Managing Director of United Bank for Africa Plc, Mr. Phillips Oduoza, last Friday assured shareholders that the bank would pay a ‘decent’ dividend at the end of the current financial year.
Oduoza gave the assurance while speaking on the floor of the Nigerian Stock Exchange (NSE) during the facts-behind-the-figures presentation to stockbrokers and management of the Exchange in Lagos.
UBA only gave a bonus of one new share for every 50 shares already held for the year ended December 31, 2011 due to the loss recorded for the year. However, the bank has begun 2012 on a positive note, having recorded a profit of N16 billion for the first quarter ended March 31.
The UBA boss noted that investors should expect improved results for the 2012, stating that the bank would decently reward shareholders for their patient and confidence.
“The bank has concluded its African expansion and the time to reap has come. I am assuring shareholders that UBA will pay dividend at the end of 2012,” he said.
Since the bank declared its improved Q1 results, investors have increased their demand for the shares. This development has boosted the share price by 42 per cent within seven days. UBA share price rose from N2.51 to N3.57 within the period as investors moved in to take advantage of the low price.
Oduoza had declared that the Q1 performance attested to the resilience of the group and a turnaround in its business performance having cleaned up its balance sheet in 2011.
“The Q1 result is our baseline performance and as we enter our business consolidation phase with limited geographic expansion, our business network, products and resources have been re-engineered for optimal value extraction for the benefit of our stakeholders. Overall, we are determined to enhance shareholder value by unlocking existing potentials in the Bank, leveraging on its huge resource base and vantage positioning in Africa , as unique sources of competitive advantage,” he said.
Also explaining the Q1 performance, the Chief Finance Officer, Mr. Ugo Nwaghodoh had said: “The first quarter result reaffirms UBA’s strong earnings capacity. The underlying fundamentals of our business remain very strong, and we shall continue to optimise the balance sheet for even stronger earnings. This year will also see significant contributions from our solid expansive solid Africa franchise.”
UBA is set to consolidate on the Q1 results as the bank last Friday projected gross earnings of N113.37 billion and profit of N32.1 billion for the second quarter ending June 30, 2012.