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

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8 years ago

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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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Just In: Tinubu swears in Ibok-Ette Ibas as Rivers sole administrator

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11 hours ago

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March 19, 2025

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President Bola Tinubu has officially sworn in Vice Admiral Ibok-Ete Ibas (rtd.) as the Sole Administrator of Rivers State.

 

The ceremony took place after a brief meeting between the president and the newly appointed sole administrator at the Presidential Villa in Abuja on Wednesday afternoon.

 

Ibas’s appointment follows President Tinubu’s declaration of a state of emergency in Rivers State due to ongoing political instability and security challenges.

 

 

As part of the emergency measures, the president suspended Governor Siminalayi Fubara, Deputy Governor Ngozi Odu, and all members of the state’s House of Assembly for an initial six-month period.

 

Vice Admiral Ibas will oversee governance in the state, although his role does not extend to enacting new laws.

 

However, the judiciary in the state will continue to operate independently.

 

 

 

 

 

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Finally, Reps pass Tinubu’s four tax bills

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14 hours ago

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March 19, 2025

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The four tax bills transmitted to the National Assembly by President Bola Tinubu in October 2024 were on Tuesday passed on the third reading in the House of Representatives.

The House had last Thursday considered and approved the report of the House Committee on Finance, which proposed several recommendations on the executive bills.

After a delay of about three months, which included public hearings and the receipt of memoranda from concerned stakeholders, the National Assembly finally resumed work on the bills three weeks ago.

The hearings were focused on how best to reform Nigeria’s tax administration system.

During Tuesday’s plenary, House Leader, Julius Ihonvbere, moved for the bills to be read for the third and final time.

He said: “Mr. Speaker and honourable colleagues, I move that the bill for an Act to provide for the assessment, collection of, and accounting for revenue accruing to the federation, federal, states, and local governments, prescribing the powers and functions of tax authorities, and for related matters be read for the third time.”

He further moved for the reading of additional bills for the third time.

These included a bill to repeal the Federal Inland Revenue Service (Establishment) Act, No.13, 2007, and enact the Nigeria Revenue Service (Establishment) Bill, which would establish the Nigeria Revenue Service with powers for assessment, collection, and accounting for revenue accruable to the government.

He also moved for a bill to establish the Joint Revenue Board, the Tax Appeal Tribunal, and the Office of the Tax Ombudsman for the harmonisation, coordination, and settlement of disputes arising from revenue administration in Nigeria.

Lastly, a bill to repeal certain acts on taxation and consolidate the legal frameworks relating to taxation, enacting the Nigeria Tax Act to provide for the taxation of income, transactions, and instruments was also moved for third reading.

The bills were then overwhelmingly voted on by the lawmakers and passed with Speaker Tajudeen Abbas presiding over the session.

The next step will see the bills forwarded to President Tinubu for assent after passing through the Senate and, if necessary, undergoing harmonszation between the Senate and House versions.

Despite the overwhelming support, the bills faced opposition, particularly from lawmakers from northern Nigeria, who, in solidarity with their governors, called for the bills to be withdrawn for further consultation.

 

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NBA to Tinubu: You lack power to remove elected governor under emergency rule

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16 hours ago

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March 19, 2025

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The Nigerian Bar Association (NBA) has told President Bola Tinubu that he lacks the constitutional powers to remove any elected governor of a state in Nigeria.

Besides, the umbrella body for legal practitioners in the country held that Tinubu’s Tuesday night declaration of a state of emergency in Rivers State “remains constitutionally inchoate and ineffective” until the National Assembly approves the declaration.

In a statement issued to journalists on Tuesday night, the NBA President, Mazi Afam Osigwe, SAN, observed that the action of Mr. President has far-reaching constitutional and democratic implications, particularly in light of the provisions of Section 305 of the 1999 Constitution, which governs the procedure for the proclamation of a state of emergency and which the President purported to have relied upon.

While stating that Section 305 of the Constitution indeed vests the President with the power to declare a state of emergency, Osigwe argued that “The 1999 Constitution does not grant the President the power to remove an elected governor, deputy governor, or members of a state’s legislature under the guise of a state of emergency.”

Besides, the NBA President observed that “the Constitution provides clear procedures for the removal of a governor and deputy governor as per Section 188. Similarly, the removal of members of the House of Assembly and the dissolution of parliament are governed by constitutional provisions and electoral laws, none of which appear to have been adhered to in the present circumstances.”

The NBA further submitted that “A declaration of emergency does not automatically dissolve or suspend elected state governments. The Constitution does not empower the President to unilaterally remove or replace elected officials. Such actions amount to an unconstitutional usurpation of power and a fundamental breach of Nigeria’s federal structure.”

The NBA, in addition, asserted that the situation in Rivers State, though politically tense, does not meet the constitutional threshold for the removal of elected officials, adding that “the purported removal of Governor Fubara, his deputy, and members of the Rivers State House of Assembly is therefore unconstitutional, unlawful, and a dangerous affront to our nation’s democracy.”

While reiterating that the President does not have the constitutional power to remove an elected governor under a state of emergency, the body stated that any such action is an unconstitutional encroachment on democratic governance and the autonomy of state governments.

The NBA therefore called on the National Assembly to “reject any unconstitutional attempt to ratify the removal of the Rivers State Governor and other elected officials. The approval of a state of emergency must be based on strict constitutional grounds, not political expediency.”

Besides, it warned that suspending elected officials under emergency rule sets a dangerous precedent that undermines democracy and could be misused to unseat elected governments in the future.

Meanwhile, the NBA demanded that all actions taken in Rivers State strictly conform to constitutional provisions and Nigeria’s democratic norms.

It also encouraged all stakeholders, including the judiciary, civil society, and the international community, to closely monitor the situation in Rivers State to prevent unconstitutional governance and abuse of power.

“The NBA remains committed to upholding the Constitution, defending democratic governance, and ensuring that the rule of law prevails in Nigeria. A state of emergency is an extraordinary measure that must be invoked strictly within constitutional limits. The removal of elected officials under the pretext of emergency rule is unconstitutional and unacceptable.

“We call on all relevant authorities to act in accordance with the law and the best interest of the country. Nigeria’s democracy must be protected at all costs, and the Constitution must be upheld as the supreme legal authority in all circumstances,” the statement added.

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