United Bank for Africa Plc released its third quarter results for the nine months period ended 30th September 2016 on the floor of the Nigerian Stock Exchange on Tuesday, showing an 8 percent growth in profit for the period at N52.3 billion from N48.6 billion made in the corresponding period of 2015.
Gross earnings of the financial giant also increased 8 percent to N265 billion, from N245.5 billion, while the group recorded a net operating income of N183 billion, 11 percent higher than N165.7 billion posted for Q3 2015.
The group’s profit before tax thus rose by 7 percent to N61.6 billion from N57.4 billion recorded in the same period of 2015.
UBA Plc also recorded a significant growth in total assets, rising 26.4 percent to N3.5 trillion, from N2.8 trillion recorded last year in sustenance of the three trillion mark crossed in the half year of 2016.
Group Managing Director UBA, Kennedy Uzoka had assured that; “UBA will sustain its culture of keeping a healthy balance sheet, with strong liquidity and capitalization, as reflected in the liquidity and BASEL II capital adequacy ratios of 45 percent and 18 percent attained in first half of 2016 respectively.”
He further stated; “notwithstanding the current slowdown in economic activities, we see bright spots ahead, especially as we see strong prospect to grow market share across all chosen economies, through our enhanced dedication to customer service”.
In another development, the United Bank for Africa, UBA, and the European Investment Bank, EIB, have agreed a new EUR 60 million lending programme to support private sector investment across Nigeria. This represents the EIB’s largest ever loan to UBA and will allow the bank to provide longer term loans than currently available to private companies in Nigeria.
The new private sector lending programme was formally agreed on the side-lines of the World Bank Annual Meetings in Washington DC by Ambroise Fayolle, Vice President of the European Investment Bank and Kennedy Uzoka, Group Managing Director and Sola Yomi-Ajayi. Head of Global Financial Institutions at UBA.
In a document made available by the bank, Vice President of the European Investment Bank, Ambroise Fayolle, said: “Private sector investment is crucial for creating jobs and ensuring sustainable economic growth. The European Investment Bank is committed to unlocking investment across Africa and we are pleased to build on past success to strengthen our partnership with UBA that will benefit projects across Nigeria.”
Speaking at the signing ceremony, Kennedy Uzoka, Group Managing Director, UBA noted, “Our growing partnership with the European Investment Bank underlines our long term objective of facilitating the development and growth of African businesses. This facility will enable UBA bridge critical financing gaps for Nigerian companies and deepen our capacity to support their growth aspirations in the local and international market place”
Ambassador Michel Arrion, Head of the European Union Delegation to Nigeria and ECOWAS, described the programme as an example of the catalytic role the EU and its institutions like the EIB are playing to support Nigeria’s economic development. “We look forward to more fruitful partnerships with Nigeria, and particularly with the private sector, which remains the engine of economic growth”.
This represents the first Nigerian operation under the European Investment Bank’s new dedicated Nigeria Private Enterprise Investment Facility, a wider million lending scheme intended to support private sector investment in the country. Under the new initiative private sector entrepreneurs and companies will be able to use loans with a longer tenor than traditionally available to invest and expand activities across a range of sectors.
The new loan will also fund capital expenditure by UBA to strengthen their support for private investment, through expansion of their branch network and improving information technology.
The European Investment Bank has supported infrastructure and private sector investment in Nigeria since 1978.
The European Investment Bank is the world’s largest international public bank and over the last five years has provided EUR 12.8 billion for investment across Africa.