LAGOS—UNITED Bank for Africa (UBA) Plc has announced a profit before tax of N6.010 billion for the financial year ended March 31, 2004. This represents a growth of 17 per cent over the figure of N5.128 billion in the corresponding period of 2003. According to the audited results, the bank posted a profit after tax of N4.525 billion or a growth of 38 per cent during the period.
The bank’s gross earnings grew marginally by one per cent to N24.5 billion in 2004 from N24.194 billion in 2003. Return on assets is 2.1 per cent for the current period as against 1.6 per cent in 2003. Total assets are N212 billion, an increase of four per cent compared with N204 billion. Loan volume increased by 22 per cent to N56 billion as against N46 billion, representing an improvement in the loan/deposit ratio from 32 per cent to 37 per cent.
Core deposits increased by seven per cent to N152 billion as against N142 billion. This is an indication of customers’ confidence in the bank.
Other performance indicators of the bank showed a shareholders’ funds of N19.533 billion in year ended March 31, 2004 , representing a growth of 31 per cent over the figure of N14.9 billion. The net interest margin increased to 77 per cent for the period under review. The bank contributed 98.5 per cent to group assets as at March 31, 2004.
Managing Director/Chief Executive Officer of the bank, Alhaji Aliyu Dikko, in a statement, said the bank had made significant progress in many of the key initiatives introduced earlier in the year. “We undertook a transformation of our risk management process in preparation for full compliance with the Basle II Accord. We commenced work on enhancing our operational and market risk management under one platform. These initiatives have resulted in better and more holistic risk management and substantial decline in our loan and operational risk losses from N3,205 million in 2003 to N761 million in 2004, representing a decline of 76 per cent in loan losses.”
The UBA boss said the flex-cube core banking software was now operational in the head office and 123 branches nationwide. According to him, “flex-cube rollout across the branch network will continue and is expected to be completed before the end of the current financial year. Fifty branches have been transformed in line with the new branch format and the new UBA logo and corporate brand.”
