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UBA Grows Profit Before Tax By 32%, Declares Final Dividend per Share of 55kobo

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United Bank for Africa (UBA) Plc, the pan-African financial services group, operating in 19 African countries, has released its audited 2016 full year results, showing significant growth in gross earnings and profits, an attestation to its resilience, enhanced productivity and geographic diversification, evident in the impressive contribution from its African subsidiaries.

 

The Group recorded an impressive 22 percent growth in gross earnings to N384 billion, as at December 2016, from N315 billion at the end of the 2015 financial year, illustrating the Bank’s ability to grow profitability despite the difficult macro-economic environment. In addition to the rising adoption of electronic banking channels in many of the African markets, where UBA operates, the Bank leveraged its strong franchise and geographical footprint.

 

As reflected in the results released on March 24, 2017 at the Nigerian Stock Exchange (NSE), covering the period January to December 2016, the Group saw a significant 32 percent growth in profit before tax to N91 billion, compared to N68 billion profit recorded over the same period of 2015.  UBA’s profit after tax grew by 22 percent to N72 billion, from N60 billion recorded the previous year. The performance was buoyed by considerable growth in both interest and non-interest income, as well as increasing efficiency gains from cost management initiatives. UBA’s subsidiaries outside of Nigeria are increasingly gaining market share, reinforcing the strong and impressive subsidiary contribution to the Group, estimated at one-third of profit in 2016, from a quarter in 2015 financial year.

 

Following the impressive performance, the Board of Directors proposed a final dividend of 55kobo, subject to the approval of the shareholders at the forthcoming Annual General Meeting, scheduled to be held on 07 April, 2017 at the Eko Hotel and Suites in Lagos. The Bank had earlier paid an interim dividend of 20k to shareholders, bringing the total dividend for the 2016 financial year to N0.75, an unprecedented yield of 13.9%, based on the stock’s unit price of N5.39 on the floor of the NSE. The results and dividend proposal justify investor confidence in the Bank, as reflected in the 20% year-to-date rally in the share price, compared to the overall market loss of 5% over the same period.

 

Commenting on the results, Kennedy Uzoka, the Group Managing Director and Chief Executive Officer expressed satisfaction at the resilience of the Bank, despite the macroeconomic challenges in a number of countries where UBA operates.  “Given the operating environment in 2016, I am very pleased with our profitability – an impressive 32% growth in profit before tax to N91 billion – whilst we have also focused keenly on operational efficiencies, illustrated by the reduction in our Cost-to-Income Ratio.” Uzoka said.

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Speaking on its outlook for the 2017 financial year, Uzoka expressed optimism, as the Bank’s pan-African operations increasingly gain critical mass across its chosen markets. “As we implement our Customer First Philosophy, we are approaching 2017 with real optimism, especially with the outlook remaining positive in many of our markets, where we benefit from our increasingly diverse revenue streams. We reiterate our pledge to delivering excellent service to our customers, and remain committed to creating superior and sustainable return for our shareholders.”

 

Ugo Nwaghodoh, Chief Financial Officer (CFO) of UBA Group stated the Bank extracted efficiency gains across its operations to boost profitability.  He confirmed that the Bank has seen significant improvement across major performance metrics, including an improvement in the net interest margin. “Our performance in 2016 reflects the strong potential and resilience of our business. We grew top and bottom lines by 22% and 32% respectively, despite the stagflation in Nigeria, our core market. Reflecting improved balance sheet management and better value extraction, our net interest margin (NIM) improved 40bps YoY to 6.7%.” the CFO noted.

 

He also expressed delight at the performance of the Group’s African subsidiaries (ex-Nigeria), which contributed a third of the Group’s profits, adding that the Bank will continue to leverage innovative offerings to grow its share of the respective markets. “As we diligently execute our Customer First initiative, I am particularly upbeat on the future of business and the value creation for shareholders.” he noted.

 

United Bank for Africa Plc is a leading financial services group in sub-Saharan Africa, with presence in 19 African countries, as well as the United Kingdom, the United States of America and France. From a single country operation founded in 1949 in Nigeria, Africa’s largest economy, UBA has emerged as a pan-African provider of banking and other financial services, to about 11 million customers globally, through one of the most diverse service channels in sub-Sahara Africa; 632 business offices, 1,750 ATMs, some 13,500 PoS, and a robust online and mobile banking platform.

 

UBA was the first Nigerian bank to make an Initial Public Offering (IPO), following its listing on the NSE in1970. It was also the first Nigerian bank to issue Global Depository Receipts (GDRs). The shares of UBA are publicly traded on the Nigerian Stock Exchange (NSE) and the Bank has a well-diversified shareholder base, including foreign and local institutional investors as well as individual shareholders.

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Lawyers petition Senate over alleged oil theft in Niger Delta

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The lawyers said about $15 million per month accruable to the federal government could potentially be lost due to the absence of a functional measurement system for exported crude oil volumes at this Ugo Ocha terminal.

A group of lawyers has petitioned the Senate Ad-Hoc committee over alleged oil theft from the Ugo Ocha export terminal at OML 42 in the Niger Delta region.

The OML 42, an oil field located in the swamps of the western Niger Delta, is operated by NECONDE Energy Limited. The terminal has four flow stations with a combined production capacity of around 30,000 barrels of oil per day (bpd).

The lawyers complained that an average of one million barrels of Nigeria’s crude oil is taken away monthly by the company without accurate measurement – due to the absence of meters at this export terminal.

In the petition seen by PREMIUM TIMES and presented at the committee’s investigative hearing on “Oil Lifting, Theft and the Impact on Petroleum Production and Oil Revenues” on 21 September, the lawyers said since the terminal was established in 2017, NECONDE has frustrated efforts by the federal government to install a metering system also known as LACT Unit at the terminal. The company, they said, continues to operate the terminal in full violation of the federal government’s requirement for accurate custody transfer measurement at all export terminals.

The petition, dated 21 September, was submitted through O. F. Emmanuel & Co. It comes on the heels of oil theft and vandalism in the Nigerian oil sector.

PREMIUM TIMES reported how the Nigerian National Petroleum Company Limited (NNPCL) disclosed that it loses 470,000 bpd of crude oil amounting to $700 million monthly due to oil theft.

This paper also reported how Nigeria, amid dwindling revenue, lost $10 billion to crude oil theft in seven months.

The lawyers, in the petition signed by the Principal Partner, Oluwatosin F. Emmanuel, alleged that as of the time of the petition, there are no meters at the Ugo Ocha export terminal to accurately determine the volumes of Nigeria’s crude oil sold to foreign buyers.

They said enormous amounts of revenue – to the tune of $15 million per month – accruable to the Federal Government of Nigeria could potentially be lost due to the absence of a functional measurement system for exported crude oil volumes at this terminal.

They also claimed that NECONDE continues to operate the terminal in flagrant violation of the federal government’s mandate for accurate custody transfer measurement at all export terminals.

“Been aware of this monumental revenue loss, the government of Nigeria, through NUPRC, recently placed a ban on all exports of crude oil from NECONDE’s OML 42 UGO Ocha terminal until a functional LACT Unit is installed on the terminal,” part of the petition read. “In spite of the subsisting government ban, NECONDE continues to export Nigeria’s crude oil illegitimately from the Ugo Ocha terminal while frustrating every effort to install a LACT Unit on the terminal.”

They asked the Senate panel to ensure that the ban on exports from the Ugo Ocha terminal is enforced and that the company is compelled to install a 1.25 million barrels per day LACT Unit (metering system).

The lawyers further prayed the committee to direct the Nigerian Navy to “arrest and detain the vessel “MT COPPER SPIRIT” which is currently lifting oil at the Ugo Ocha terminal, direct the NMDPRA and NUPRC to cancel all barging permits granted to NECONDE and NPDC until a LACT Unit is installed and commissioned at the Ugo Ocha terminal – as directed by NUPRC and direct the Nigeria Ports Authority to prohibit the movement of crude oil barges and tankers to and from the Ugo Ocha terminal.”

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Just In: Again, national grid collapses to zero megawatts

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Nigeria’s national grid crashed to zero megawatts (MW) at 10:51am on Monday, causing power outage nationwide outage.

The collapse occurred days after electricity consumers said they had enjoyed improved supply.

The national electricity grid as of 10am on Monday had 3,712MW generated from 21 Generation Companies (GenCos) before it dropped to 0MW one hour after.

According to the information from the System Operations, a section of the Transmission Company of Nigeria (TCN), only Afam IV was on the grid but with zero supply as of 12noon.

As of Sunday, the highest generation was 4,100MW while the lowest was 3,652MW with the frequency hovering between 49.04 Hertz (Hz) and 50.34Hz.

Since July 1 this year, consumers said power supply had increased in their various areas.

For instance, the Abuja Electricity Distribution Company (AEDC) recently confirmed increment in its daily allocation to over 500MW from the actual 300MW it had distributed before then.

Though the national grid had not cross 5,000MW, Daily Trust observed that level of load rejection especially around the DisCos’ networks had dropped significantly with some customers entitled to five-hour supply, recording over 12 hours daily.

The Nigerian Electricity Regulatory Commission (NERC) had attributed the improvement in power supply nationwide to the partial activation of contracts that seeks to hold sector operators liable for deliberate incompetence.

The national grid collapsed twice, in July and in August but was quickly restored and power supply improvement was sustained before the latest system collapse on Monday.

According to records, this is the seventh system collapse this year, much more than the three recorded last year.

Although TCN, the national grid manager was yet to establish the cause of the crash, some insider said it could be as a result of a maintenance of the 330 kilovolts Jos – Bauchi transmission line maintenance slated for Monday.

Some DisCos including Kaduna Electric, Enugu, and Kano, had already communicated the nationwide outage to their customers noting that efforts were ongoing to restore supply.

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Police Deploy More Personnel To Seaports In Lagos Over Nigerian Students, NANS’ Protest

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Following the ASUU strike that has kept university students across the nation at home for over seven months, NANS declared “Occupy The Airport” nationwide protest.

The Nigeria Police Force has announced that it has deployed personnel to adequately secure seaports across the nation following a threat by the National Association of Nigerian Students (NANS) to shut down commercial activities at the nation’s busiest seaports ¬¬¬¬¬¬- the Apapa and Tin-Can Island Ports in protest over the lingering strike by the Academic Staff Union of Universities (ASUU).
Following the ASUU strike that has kept university students across the nation at home for over seven months, NANS declared “Occupy The Airport” nationwide protest.
The aggrieved students who protested on Monday at the Murtala Muhammed International Airport also reportedly threatened to ground commercial activities at the Apapa and Tin-Can Island Ports in Lagos State.
Disclosing the security beef up to Daily Trust, the Commissioner of Police in charge of Western Port Authority Command, Jonathan Towuru, said security was tightened around the Western Ports to avoid any breakdown of law and order although the student body did not show up as threatened.
The commissioner said, “People went about their businesses while operations at the terminals went on seamlessly, without any hindrance. But if the students eventually turn up, we will engage them in discussions. I must say that they conducted themselves well on Monday at the airport even though you still saw police monitoring the protest.”

 

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