UBA delivers N153 billion profit, records 11% balance sheet growth

United Bank for Africa (UBA) Plc, Africa's Global Bank, has released its audited results for the full year ending December 31, 2021, revealing strong performance in key financial measures.

The bank's 2021 financial results, which were reported with the Nigerian Stock Exchange (NSE) on March 4, 2022, indicated that total earnings increased by 7% to N660.2 billion, up from N616.8 billion at the end of the previous financial year.

Total assets increased by 11% to N8.5 trillion in the year under review, up from N7.7 trillion in 2020, marking the first time the Bank's assets had exceeded N8 trillion.

Despite the difficult business environment and slow economic recovery in most of its operating countries, UBA's Profit Before Tax increased by 20.3 percent to N153.1 billion in 2021, compared to N127.3 billion at the end of the previous financial year; and Profit After Tax increased by 8.7 percent to N118.7 billion in 2021, compared to N109.2 billion the previous year.

Net loans increased by 7.7% to N2.8 trillion, while customer deposits increased by 12.2% to N6.4 trillion, compared to N5.7 trillion in the same period in 2020, reflecting increased customer confidence, improved customer experience, successes from the ongoing business transformation program, and the deepening of its retail banking franchise.

The bank's operating income increased by 10% to N443 billion in the year under review, compared to N403 billion the year before, while operating expenses remained unchanged at N279 billion.

The Bank suggested a final dividend of 80 kobo for every ordinary share of 50 kobo for the financial year ending December 31, 2021, in keeping with its regular practice of rewarding shareholders. Because the Bank paid an interim dividend of 20kobo earlier in the year, the final dividend, which is subject to confirmation by shareholders at its Annual General Meeting, will bring the total payout for the year to N1.

Kennedy Uzoka, Group Managing Director/CEO, commented on the results, saying that despite the tight and demanding operating environment, UBA continues to generate tremendous performance.

''The year 2021 can best be regarded as a year of global recovery," he stated, "as supply systems recover from the terrible disruptions suffered in 2020."

As a result, UBA's top line increased by 7% to N660 billion (USD1.56 billion), with profit before tax (PBT) of N153.1 billion, up 20.3 percent from the previous year. Net Loans and Advances increased by 7.7% to N2.8 trillion, with a focus on robust economic sectors such as oil and gas, agriculture, and manufacturing. Customers' deposits increased by 12.2%, crossing the N6 trillion threshold to N6.4 trillion."

The GMD stated that the bank's portfolio quality, as well as the bank's credit risk management frameworks and policies, remain the bedrock of the bank's positive results over the years and that the current performance highlights UBA's relentless customer focus and leverage on its key strategic levers – People, Process, and Technology.

United Bank for Africa Plc is Africa's global bank, serving more than 25 million customers in 20 African nations through over 1,000 corporate offices and consumer touchpoints. UBA connects people and businesses across Africa through retail, commercial, and corporate banking, innovative cross-border payments and remittances, trade finance, and ancillary banking services, with offices in the United States, the United Kingdom, and France, and more recently the United Arab Emirates.