The recently released audited financials of UBA Plc, indicated that the bank(parent company) alone posted profit before tax of N53.84billion,compared to N57.65billion in 2016,representing a decline of  about 7%.

However,The group as a whole,with all the subsidiaries posted a profit before tax of N105billion,(N90.64billion,2016).

The consolidated financial statements of the Group for the year ended 31 December 2017 comprise the Bank (Parent) and its subsidiaries,whether their activities are related to banking or not.This  type of consolidation is in line with the International Financial Reporting Standards(IFRS).
 
The Group had a net cash flow deficit of N32billion, mainly due to its very aggressive investment activities, investing over N1 trillion in securities, compared to N833billion in 2016.Cash and Cash equivalent (short term  investments)balances amounted to  N428billion as at year end.

The liquidity position of the Bank remained strong in the course of the period and materially above the minimum liquidity ratio requirement of 30% prescribed by the Central Bank of Nigeria. The Bank's ratio of net liquid assets to deposits and customers at the reporting date averaged 40%.

The group also recorded an impairment loss of N32 billion on Loans and Receivables ,representing about 3% of the group's loans and advances portfolio of N1.19 trillion.

Other group results:

Group's Gross earnings grew substantially to N462 billion, up by 20 per cent from N314 billion recorded in the corresponding period of 2016.

The bank’s subsidiaries outside Nigeria contributed a third of the group’s top-line and 45 per cent of the profit for the year, a remarkable improvement from the 31 per cent contribution made by the ex-Nigeria offices in 2016.This, according to market analysts, affirmed the success of the bank’s expansion strategy, with a target of 50 per cent contributions by 2020, said the statement.

The bank’s operating income grew to N326.6 billion, a 20.6 per cent increase compared to N270.9 billion recorded in 2016. This, according to analysts, affirmed the capacity of the group to deliver strong performance through varying economic cycles and a challenging business environment.

The audited results also showed that the group's total assets peaked at N4.07 trillion, translating to a 16.1 per cent year-on-year growth from the N3.50 trillion recorded in the 2016 financial year.

In 2017, the bank’s net loans achieved a prudent 9.7 per cent growth at N1.65 trillion, while customer deposits grew to N2.73 trillion, representing a 10 per cent YoY growth over the N2.49 trillion recorded in the 2016 financial year.

Reflecting strong internal capital generation, the bank’s shareholders’ fund also rose by 18.2 per cent to N529.4 billion in the 2017 financial year.

Subject to the approvals of the shareholders, the bank’s board proposed a final dividend of 65 kobo per every share of 50 kobo each. This final dividend proposal is in addition to the 20 kobo per share interim dividend paid after the audit of the 2017 half-year financial statements, thus putting the total dividend for 2017 financial year at 85 kobo per share.

Commenting on the results, Kennedy Uzoka, GMD/CEO of UBA, said: “The results underline the success of our strategy of expanding across Africa, diversifying revenues and capturing the broader business opportunities inherent in Africa’s growth.

“The results reinforce the sustainability of our business model and the capacity to deliver superior long-term returns to shareholders, as the economic and business environments improve.

“In 2017, we made strong progress in our strategic initiative of dominating transaction-banking across all our countries of operation, gaining market share in all lines of our business.

“Even as the non-oil sector of our largest country of operation, Nigeria, remained relatively weak, we still grew earnings by 20 per cent to N462 billion, a third of which was attributable to non-funded income.”

Also speaking on the bank’s performance, the Group Chief Finance Officer (GCFO), Ugo Nwaghodoh said: “In a period of high-interest rates, we achieved a relatively low 3.7 per cent cost of funds. This operational efficiency reflects the benefit of our rich pool of stable savings and current account deposits.

“Net interest margin stabilised at 7 per cent, even as yields on treasury assets dropped in the last quarter of 2017. Our core transaction banking offerings gained strong momentum, with income from these business lines growing by double digits.”

“We remain committed to our responsible approach to balance sheet management, with a focus on growing risk assets and a broader balance sheet in a profitable and prudent manner.

“Amidst a subdued Nigerian credit market, we grew our loan portfolio by 10 per cent, leveraging our robust liquidity and capitalisation to support good businesses through this challenging economic cycle.

“We closed the year with a Basel II capital adequacy ratio of 19 per cent and a liquidity ratio of 50 per cent, well ahead of the 15 per cent and 30 per cent regulatory requirement, respectively.

“Our disciplined approach to lending and broader risk management continue to uphold our asset quality,”


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