Economy-Nigeria - United Bank for Africa Plc has declared gross earnings of N185.2billion in 2010 full financial year. Profits before tax and exceptional items in the period grew by 45 per cent from N10.9billion annualized figure in 2009 to N15.9billion in 2010. According to the result posted on the floor of the Nigeria Stock Exchange yesterday, loans and advances stood at N629billion while total assets grew marginally to N1.62 trillion, and balance sheet size improved to N2.27 trillion. The bank has recommended a twin dividend declaration of stock and cash dividend. A robust stock dividend of 25% of holding (1 for 4) was proposed by the bank for shareholders' ratification at the upcoming Annual General Meeting (AGM).

While the 2010 full year results were moderated by provisions, exceptional write-offs and expansion cost into African countries, the first quarter 2011 results show strong improvements as the 2nd tier strategic intent of expanding into Africa and diversification of the bank's earnings base begins to pay off.

The bank also doubled its profits in the first quarter of the current financial year ended March 31, 2011 by 150 per cent, with a net profit from N1.6billion to N3.9billion. Loans stood at N630billion while deposits also rose to N1.31trillion with total assets rising significantly to N1.7trillion during the first quarter of 2011.

Speaking on the bank's performance, Executive Director, Finance, UBA, Emmanuel Nnorom said the bank has already started making great strides in driving its business in this financial year.

'We will focus on reinvigorating our business and leveraging our wide distribution network and Pan-African and international presence to optimize the bank's productivity while flattening our cost base and reducing asset deterioration to the barest minimum. We will aggressively drive new businesses and consolidate on our existing businesses for maximum profitability through rigorous performance management systems,' he said

Some of the key initiatives being implemented according to him include aggressive loan growth occasioned by the recent alignment of its operating structure to help us tap into ensuing business opportunities and grow our risk assets portfolio; Consolidation of its African operations as expansion to the African market has started yielding positive returns; Improving its deposit mix by driving for low- cost deposit generation and customer service delivery.

Commenting on the results, the bank's Executive Director Finance, Mr. Emmanuel Nnorom said, 'We posted N15.9 billion profits in 2010 as against an annualized corresponding figure of N10.9 billion in 2009. But for the N12.7 billion exceptional items taken during the period, net profits would have been stronger.' The N12.7 billion resulted from the transfer to AMCON and the special assets of N7 billion arising from legacy Continental Trust Bank (CTB) that was being written off since the last three financial periods. 'It's interesting to note that this is is the final of the CTB write-offs that will not reoccur again' he further explained.

United Bank for Africa Plc is one of Africa's leading financial services institutions offering banking services to more than 7.2 million customer accounts across 726 branches , 1,230 ATMs and 3, 900 PoS units deployed across 18 African countries. With Presence in New York, London and Paris, UBA is connecting people and businesses across Africa through retail and corporate banking, innovative cross-border payments, trade finance and investment banking services.

Kayode Ekundayo

Daily Trust/15/04/2011