UBA PLC: NO SHAKING

It may be early in the day but it looks like by nine months to September, tough times in Nigeria and the Federal Governments decision on revenue accounts is yet to hit UBA PLC on the wrong side. According to figures released this week for the period, incomes are growing at double digit while costs are mounting at single digits. And that is very good.
UBA grew its gross earnings within the period by 17.3 per cent to N247205m from N210715m at the same time in 2014 as income from its main line (banking) rose by 17.2 per cent to N175090m from N149409m.
Fees and commission also increased by double digit. It closed at NN47385m, up 15.4 per cent while income from other operations rose by 17.5 per cent to N4850m from N4128m.
On the other hand, interest paid ended the period only 8.2 per cent up at N72975m compared to N67449m by September 2014.
Expenses incurred to earn fees and commission  as a matter of fact dropped by a significant 86.1 per cent to N680m while personnel costs increased by 6.98 per cent to N43691m.
It was in other expenses UBA recorded double digit increase  of 13.5 per cent to N54966m and provision for depreciation which leaped 41.5 per cent from N48417m.
Hence, the banks profit before tax, ended September 2014 34.8 per cent higher at N57344m compared to N42543m previously pushing profit on each  N100 income earned to N23.2 from N20.2.
THUS:
* The shareholders could bank on fine finish by financial year end and dividend for the year.
* It will be good though to monitor how the transfer of government revenue accounts to the Central Bank hits its liquidity position.

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