Despite the effect of the COVID-19 pandemic on the economy, the United Bank for Africa (UBA) Plc’s profit before tax hit N131.9bn as of the end of the 2020 financial period.
This represents an increase compared to the N111.3bn recorded at the end of the previous year (2019).
UBA disclosed this on Monday in its audited results for the full-year ended December 31, 2020.
“In the same vein, the profit after tax rose remarkably by 27.7 percent to N113.8bn compared to N89.1bn recorded at the end of the 2019 financial year,” it said in its report.
The 2020 audited financials listed at the Nigerian Stock Exchange on Monday revealed the bank’s gross earnings expanded by 10.8 percent to N620.4bn from N559.8bn recorded in 2019.
Its total assets also rose by 37 percent to N7.7tn for the year under review.
UBA Records N131.9bn Profit Before Tax In 2020
On the cost side, it stated, operating expenses grew by 10.1 per cent to N249.8bn from N217.2bn in 2019, well below average inflation rate of 13.2 per cent for the year, reflecting the bank’s cost effectiveness.
The bank also recorded 24 percent growth (to N2.6tn) in loans to customers, while customer deposits increased by 48.1 percent to N5.7tn, compared to N3.8tn recorded in 2019.
Speaking on the result, the bank’s Managing Director/Chief Executive Officer, Kennedy Uzoka, stated that 2020 was important for UBA Group, as it progressed further market share in most of its countries of operation.
He said, “We ended a very challenging year on a reassuring note. The bank recorded double-digit growth in both our top and bottom lines, as gross earnings and after-tax profit grew by 10.8 per cent and 27.7 per cent to N620.4bn and N113.8bn respectively.
“Return on equity was 17.2 per cent, even as our cost-to-income ratio moderated to 61.3 per cent.”
He added that the earnings per share of N3.20 was 26.8 percent higher than that of the preceding year.
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