The share price of United Bank for Africa Plc rose 5.91%, closing at N34.85 per share, from Tuesday’s N33.00 each after touching an inter-day high of N35.00 from its low of N33.20, in an apparent investors’ reaction to the group’s first quarter unaudited account presented by the board.
Highlights of the result included the 37.31% growth in gross earnings, lifted by the interest income, net trading and commission income, as well as fee and commission income, while fee and commission income growth was kept flat. Net profit rose by 33.15%, but it could have been better, but for the 592.96% spike in impairment charge for credit losses on loans within the period under review.
According to the scorecard presented through the Nigerian Exchange Limited, UBA Group’s gross earnings income rose by N193.5bn from N518.7bn in the first quarter of last year to N712.2bn, with interest income rising to N599.834bn from N440.764bn; and interest expense from N140.088bn to N247.957bn, leaving a net interest income of N351.877bn, up from the previous N300.676bn.
Fee and commission income improved from N113.653bn to N124.074bn and expense to N52.119bn from N51.481bn; resulting in net fee and commission income of N71.955bn from N62.172bn.
Net trading and foreign exchange income jumped to N37.035bn from N11.901bn; other operating income fell to N3.369bn from N3.84bn; following which total non-interest income stood at N112.359bn from N77.913bn. Operating income improved from N378.589bn to N464.236bn; impairment charge for credit losses on loans stood at N11.122bn from N1.605bn; net impairment charge on other financial assets climbed from N1.675bn from N3.057bn, leaving net operating income after impairment loss on loans stood at N450.057bn from N375.309bn.
Employee benefit expenses rose from N66.308bn to N84.316bn; depreciation and amortisation increased to N12.927bn from N10.061bn; while other operating expenses grew to N148.548bn from N142.596bn; amounting to total operating expenses of N245.791bn, compared to N218.965bn in the previous first quarter.
Profit before tax, therefore stood at N204.266bn, as against N156.344bn; while tax charge at N14.422bn from N13.76bn, left net profit of N189.844bn, compared to the previous N142.584bn; representing earnings per share of N5.35 each; up from N3.96 per share.
UBA Group’s balance sheet rose marginally from N30.323tr to N31.712tr, with cash and bank balances rising to N8.163tr to N9.542tr; ahead of customer loans and advances which stood at N6.827tr from N6.954tr. Investment securities at face value though other comprehensive income rose to N6.207tr from N4.942tr; while at amortised cost fell to N6.922tr from N7.592tr.
Total liabilities closed at N28.037tr from N26.904tr, boosted by the N22.863tr customer deposits, which rose from N21.874tr.
