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United Bank for Africa Plc, a leading Pan-African financial institution, released its 2020 annual report for the period ended 31st December, 2020 on Monday, showing 18.5 per cent growth in profit before tax (PBT) from N111.3 billion in 2019 to N131.9 billion last year. Similarly, the bank grew its profit after tax (PAT) by 27.7 per cent to N113.8 billion in 2020, according to the report filed at the Nigerian Stock Exchange (NSE).

In a press statement released yesterday, UBA said it was able to deliver impressive growth across its top and bottom lines despite the economic shocks caused by the COVID-19 pandemic. The bank's gross earnings grew by 10.8 per cent to N620.4 billion last year, compared to N559.8 billion recorded in 2019.

UBA attributed the performance to its commitment to creating maximum value for its stakeholders and prudent risk management practices. In a corporate announcement released on the NSE on Tuesday, UBA disclosed its proposed final dividend payout of N0.35 per share, bringing the total dividend for the year to N0.52 per share, having paid an interim dividend of N0.17 kobo earlier in the year.

“Despite the tumultuous impact of COVID-19 pandemic globally and across our 23 countries of operation, we created N519.0 billion additional loans as we continued to support our customers and their businesses,” UBA’s Group Managing Director/CEO, Kennedy Uzoka, said. “Customer deposits grew 48.1% to N5.7 trillion, driven primarily by additional N1.8 trillion in retail deposits.”

In total, UBA’s loans and advances to customers reached N2.6 trillion last year, up 24 per cent from N2.1 trillion posted in the previous year. The bank said the significant increase in customer deposits reflects increased customer confidence and improved customer experience arising from its ongoing business transformation programme and the expansion of its retail banking franchise.

The bank said its total assets rose by 37 per cent from N5.6 trillion in 2019 to N7.7 trillion last year. Interest income increased by 5.7 per cent to N427.9 billion last year, driven by 8.2 per cent and 7.5 per cent growths on interest income on loans and investment securities, respectively.

The bank’s interest expense declined by 8 per cent to N168.4 billion driven largely by a 34.2 per cent decline in interest expense on customer deposits in the bank’s Nigeria operations. Meanwhile, its operating expenses grew by 10.1 per cent to N249.8 billion, compared to N217.2 billion reported in 2019.

According to the financial report, the bank's non-performing loan (NPL) ratio was 4.7 per cent in 2020, down from 5.3 per cent in the previous year. The Group delivered improved earnings per share (EPS) of N3.20 in the current reporting year, up 26.8 per cent from the N2.52 EPS declared in 2019.

Speaking on the bank’s strategy, Uzoka said UBA will continue to implement its transformation programme and focus on providing excellent services to its customers.

“Looking ahead, I am inspired by the achievements we have made since the launch of our transformation programme,” the GMD/CEO said. “We have expanded market share considerably across the geographies where we operate and are consolidating our digital banking leadership in Africa. We will continue to leverage our diversified business model and dedicated workforce to further strengthen our position as ‘Africa’s Global Bank.'”

UBA has over 21 million customers across more than 1,000 business offices and customer touchpoints in 20 African countries. The bank also has presence in the United States of America, the United Kingdom and France.