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UBA Plc just released their 2012 Q2 Financials and shows a 162% increase in profits after taxation. They made a profit after tax of N27b for Half Year ended June 2012 as against the N10b made for the same period last year. This is a marked improvement and a continuation of their impressive turnaround which began in the first quarter of the year. See below;

 

The Company’s share price has also seen a steady rise since their fall towards the end of last year and early this year. See below;

  Check here for more/source – 12/7/2011 – 10/7/2012

Bottom Line

Whilst the above results look encouraging, it doesn’t come as a surprise to me. After their shocking loss of 2011, I had no doubt the company will bounce back towards profitability as most banks in Nigeria often do after reporting losses. It is also important to note that this time last year they also reported a profit and still ended up with a loss due to provisioning on bad loans. So far they have only been able to increase their loans and advances by 4.97% from the same time last year, yet profit increased by 162%. For bounty hunters UBA offers an opportunity to increase share value. It was N2.59 at the start of the year and went as low as N1.72 in mid february. As at today it is N4.09 a more than 100% increase in share value. I expect that to continue to increase towards the end of the year, possibly to the N7 levels as Q3 results are digested. For value buyers, well, not sure 6months or indeed one year results are enough reasons to invest in Banks that operates in an environment of weak real sector data and often misrepresentation of facts.

Check more data on UBA  Here

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