United Bank for Africa Plc, the lender operating in 19 countries on the continent, has defied macroeconomic headwinds hitting Nigerian companies as full year 2015 earnings spiked, a result that beat analysts expectation.
For the year ended December 2015, UBA’s net income increased by 24.53 percent to N59.65 billion from N47 billion as at December 2014.
The impressive results were as a result of an 18.95 percent rise in interest income to N233.96 billion and the contribution from non interest income.
The lender’s upward trajectory in noninterest income were supported by growing fees from e-banking (Cards, web and mobile banking, PoS and other e-commerce), remittance services, as well as treasury activities.
While some lenders are foreseeing lower than expected earnings in their 2015 financial results on the back of lower oil price and foreign exchange restriction s, UBA was able to translate top line impressive results to bottom line growth as net margin increased to 18.94 percent in December 2015 from 16.69 percent in 2014.
Lenders in Africa’s largest economy have been hard hit by a sharp fall in oil price by 60 percent to $40 and the currency restriction imposed by the Central Bank of Nigeria.
The apex bank said it restricted dollars to lenders with a view to controlling inflation and protecting the reserve from continued depletion from lower oil price.
UBA has total assets of N2.75 trillion in the period under review while market capitalization was N332.62 billion in the same period.
The bank’s share price closed at N3.74 on the floor of the exchange while market capitalization was N123.71 billion.
