Despite the challenging economic climate the Nigerian economy is facing, banks have continued to publish huge profits from their operations in 2015.
The latest is the United Bank for Africa Plc, whose audited full year financial results for the year ended December 31, 2015, showed the bank recorded a 10 percent growth in gross earnings.
It closed at N315 billion and 25 per cent growth in profit-after-tax to N60 billion, translating to a 20 per cent return on average equity.
Similarly, Guaranty Trust Bank Plc on Monday declared an 8.4 per cent growth in gross earnings of N301.9 billion for the financial year ended December 31, 2015, against N278.5 billion reported in 2014.
The bank’s profit before tax stood at N120.7 billion compared with N116.4 billion declared in 2014. Profit after tax also grew to N99.4 billion from N94.4 billion in 2014.
Details from its filing with the Nigerian Stock Exchange, NSE, said UBA defied competition and macroeconomic pressures to grow operating income by 10 per cent, from N186 billion in December 2014 to a record N205 billion in December 2015.
The bank said following the impressive performance, the board has proposed a final dividend of 40 kobo per share in addition to an interim dividend of 20 kobo per share earlier paid following the audit of its 2015 Half Year Results.
The Group Managing Director/CEO, UBA Plc, Phillips Oduoza, said the result was a new high, “reflecting the hard work and discipline of our board, management and staff in creating value for all stakeholders.”
Mr. Oduoza said the bank remained “committed to growing in a responsible manner that aligns with our vision of building an enduring institution”.
He said the bank’s business model was aimed at promoting geographic diversification through proactive strategies and strong governance to create an edge for it through the year.
He said it would continue to invest in its future, whilst managing costs to generate strong returns to shareholders.
The Group Chief Finance Officer, GCFO, Ugo Nwaghodoh, said despite macroeconomic volatilities, the bank leveraged efficiency gains in its business development and operations to grow earnings.
“We improved on our balance sheet management and pricing, thus ensuring a strong 19% growth in interest income as well as an enhanced net interest margin of 6.3%.
“Our improved service delivery and customized offerings helped in growing transaction banking volume, with attendant fee income,” he said.
He expressed satisfaction with the performance of the bank’s Africa operations, particularly in synergy extraction and pursuit of scale economics to achieve market share and earnings targets.