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
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The bank is yet to release its annual report so details about the earnings are limited
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However, Net Interest margin remained flat at 61% and was below the above 70% posted by the likes of Zenith First Bank and UBA
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UBA’s Net Interest income is the 6th largest in the banking industry this year.
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The N61billion made in commission and fees is one of the highest in the industry
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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
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The banks operating expenses remained flat during the year boosting efficiency in operating profits
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The Bank Generated N256.2billion in cash from operations during the period
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The banks deposits rose 21% to N1.7trillion and only Zenith Bank, First Bank and ETI is higher
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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%.
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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
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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
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Earnings per share was N1.77 and dividend proposed is 50kobo representing a yield of about 6.5%
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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