Mr. Phillips Oduoza

Shares in United Bank for Africa Plc (UBA) rose by 2.7 per cent as investors reacted positively to the   impressive financial result for the third quarter (Q3) ended September 30, 2012 released by the bank Monday.

UBA shares appreciated by N0.15 to close higher at N5.65 per share; on a day that the market was bearish. The bank reported a profit before tax of N44.8 billion in Q3 of 2012, showing a jump of 376 per cent above the N9.4 billion recorded in the corresponding period of 2011.

Other highlights of the result prepared with International Financial Reporting Standards (IFRS), showed that Profit after tax rose from N7.4 billion to N39.1 billion, while gross earnings grew from N138.5 billion in 2011 to N168.2 billion in 2012.

The bank’s total assets improved by 11.1 per cent from N1.946 trillion 2011 to N2.162 trillion 2012. Operating expenses declined by 3.5 per cent, accentuating the cost reduction initiatives put in place by the management since the beginning of the financial year. The bank also achieved 252.9 per cent growth in earnings per share from N0.34 in 2011 to N1.2 in   2012.

Total deposits from customers also increased by 11.2 per cent to N1.674 trillion, from N1.505 trillion in the corresponding period of 2011. Loan-to-deposit ratio; capital adequacy ratio see considerable improvements, standing at 58.6 and 23.9 per cent respectively from 59.7 and 23.7 per cent  in corresponding period of 2011.

Commenting on the performance, the Group Managing Director/CEO, UBA Plc Mr. Phillips Oduoza said “we continue to pursue our unique strategy of maintaining diversified business in terms of geography and earnings mix. In Nigeria, we recorded an impressive growth in deposits and still kept funding costs relatively low despite a spike in interest rates during the Q3.”

“There are increased contributions across key financial parameters in our pan-African business. In all, UBA remains committed to achieving its targets for 2012 and especially its long term aspirations,” Oduoza said.