UBA Plc Is Back To Profitability – Post Impressive N51.4billion PAT!!

UBA Plc finally released its 2012 audited accounts with profits after tax of N51.4billion. This ensures the bank is back to profitability after  a whopping loss of N26.6billion a year earlier. The bank’s net interest income rose 34% to N91billion and income from commission and fees (including other operating income) rose 21% to N61.4billion. Total operating income also rose 94% toN154.6billion.

Key Highlights

• The bank is yet to release its annual report so details about the earnings are limited

• However, Net Interest margin remained flat at 61% and was below the above 70% posted by the likes of Zenith First Bank and UBA

• UBA’s Net Interest income is the 6th largest in the banking industry this year.

• The N61billion made in commission and fees is one of the highest in the industry 

• The banks loan losses reduced drastically by 87% to N4.5billion. It was N37billion a year last year. It is also less industry average of N14billion

• The banks operating expenses remained flat during the year boosting efficiency in operating profits

• The Bank Generated N256.2billion in cash from operations during the period

• The banks deposits rose 21% to N1.7trillion and only Zenith Bank, First Bank and ETI is higher

• Return on Equity was an impressive 30% and to the peak of this result. Only GTB did better amongst its peers at the top with 33%.

• The bank also paid minimal tax equal to 1% of pre-tax profits. That is quite surprising considering it is a Holdco. I believe they must have enjoyed some relief from losses carried forward

• The banks retained earnings is now N50billion a 212% rise from 2011. Profit from discontinued operations of N3.289billion pushed Profit for the year to N54.7billion

• Earnings per share was N1.77 and dividend proposed is 50kobo representing a yield of about 6.5%

• Share price rose 2% to N7.64 at the time I wrote this blog. The share price is currently 4.32x its earnings (4.32x P.E ratio)

UBA Plc 2012 Audited Accounts was posted on the website of the NSE