Tony Elumelu’s UBA posts $147.3-million mid-year profit, 36-percent higher than last year

United Bank for Africa Plc (UBA) has posted N60.6 billion ($147.3 million) in profits in the first half of 2021. UBA is a pan-African financial services group headquartered in Lagos.

This reflects a growth of 36-percent compared with last year’s profit of N44.4 billion ($107.9 million).

The leading financial institution declared that the double-digit growth in its profits for the half-year period can be attributed to the higher interest and non-interest income that the group generated despite challenges in its operating environment.

Its interest income increased from N205.6 billion ($499.8 million) in the first half of 2020 to N222.6 billion ($541.1 million) in the first half of 2021, while income from fees and commission increased from N38.6 billion ($93.8 million) to N45.8 billion ($111.3 million).

In line with the growth in interest and non-interest income, its gross earnings for the period increased from N300.3 billion ($730.0 million) in 2020 to N315.3 billion ($766.5 million).

UBA is a Nigeria-based financial group with operations in 20 African countries and in the UK, United States and France.

The group was born out of the merger of the financially distressed Standard Trust Bank and UBA in 2005 under Tony Elumelu.

Since then, it has grown into one of the largest banks in Nigeria, with the group’s total assets crossing the N8-trillion mark ($19.4 billion) in the first half of 2021, while its customer deposits have also crossed the N6-trillion mark ($14.6 billion).

UBA’s Group Managing Director and CEO Kennedy Uzoka, commenting on the bank’s performance, said its investment in the rest of Africa continues to yield strong results.

“The benefits of pan-African business diversification accruing to the Group is once again evident, with gross earnings and interest income growth of 5.1 percent and 8.2 percent, respectively, despite the low yield environment in our largest market, Nigeria,” he said.

Aside from the increase in interest and non-interest income, its profits in the first half of 2021 were supported by cost containment measures that kept its expenses from rising faster than the increase in gross earnings during the period.

The lender’s resilient financial performance led the board to recommend paying an interim dividend of N0.20 ($0.000486) per share to shareholders.

Elumelu, who sits on the group’s board as chairman, is expected to pocket a dividend of N476.2 million ($1.2 million) from his stake.

The Nigerian businessman derives the majority of his N17.9 billion ($43.4 million) net worth from his stake in the pan-African bank.As of press time, 8:10 AM, Sept. 10, shares in the group were worth N7.50 ($0.018) per share, 4.7-percent higher than their opening price yesterday, Sept. 9.