United Bank for Africa Plc has recorded a profit before tax of N33.248 billion for the half year ended June 30, 2013 compared with N30.409 billion in the corresponding period of 2012.
Details of the bank?s unaudited results presented to the Nigerian Stock Exchange (NSE) Monday showed an increase of 16.7 per cent in gross earnings growing from N107.9 billion to N125.98 billion. Profit after tax rose from N25.8 billion to N28.4 billion.
On the balance sheet side, deposits rose by 13.5 per cent from N1.77 trillion in 2012 to N2.01trillion 2013 while total assets increased by 6.9 per cent N2.42trillion.
Similarly, the bank recorded liquidity, adequacy and loan deposit ratios of 53.5 per cent, 22.3 per cent, and 37.7 per cent respectively which above regulatory and industry benchmarks.
Commenting on the results, UBA?s Group Managing Director and Chief Executive Officer, Mr. Phillips Oduoza, said: "We are pleased with our first half 2013 financial results; having operated under the revised CBN guideline on bank charges in the second quarter of the year, I am glad to announce that our plans to minimise the effect of the reduced fees and commissions are working. Our business fundamentals are improving with increased revenues from loans creation, cost savings arising from cheap deposits mobilisation and improved asset quality. We will focus on driving our business to gain market share and manage costs to enable us deliver value to our stakeholders.?
Analysts at FBN Capital Limited said the UBA?s PBT and PAT were ahead of their estimates by 12 per cent and 11 per cent respectively.
They added the share price of UBA would be supported by the results, noting the impact of the hike in cash reserve ratio(CRR) on public sector fund notwithstanding.
?We believe that UBA?s exposure is just under 10 per cent of deposits, implying a worst case EPS impact of less than five per cent to 2013 earnings. Consensus 2013 PBT is N62.2 billion. We do not expect any significant changes to this forecast on the back of these results and/or the hike in CRR. We expect the results to be supportive of the shares? they said.