UBA PLC; NARROW ESCAPE

For the Nigerian bank that truly has subsidiaries all over Africa, United Bank of Africa -UBA PLC, it was a clear case  of squeezing through for safe landing in the first half to June.

And as if to celebrate this, the directors have declared interim dividend of 20k per share payable by September 19 this year.

According to the interim results to June released this week, UBA gross earnings eased marginally by 0.1% to N165580m under pressure from 27.4% and 6.57% decrease in other operating income and interest income to N1599m and N107418m respectively.

The squeezing through occurred as a higher 14.4% decrease in interest expense to N43286m was recorded in addition to 21.7% increase in fee and commission to N36936m and 7.79% rise in net trading income to N19637m.

Like for most banks so far, boost in fee and commission came mainly from e business income while real incomes associated with foreign exchange trading tumbled.

UBA increased its impairment provision within the period by multiples to N6821m from N2.22m previously and witnessed 46.1% increase in fee and commission expense to N6098m from N4174m.

It also recorded 6.52% rise in other operating costs to N38488m and 0.8% increase in staff expenses to N29273m even as gross income drooped.

In the end, it squeezed through unto 3.13% increase in  profit before tax to N40270m.

However, the distributable profit from which the directors declared dividend was beefed up with N32432m gain from forex transactions compared to N2492m loss previously and N32432m in fair value appreciation as against N3883m in 2015 interim.

UBA PLC: Nbn Half year
                   2016.       2015
G. Earnings 165.6.   165.7
Interest inc. 107.4.  115.0
   " expense.  43.3     50.6
Impairment   6.82.    2.22
Fee & Comm.36.9.  30.4
  " expense    6.10.   4.17
Net trading   19.6.    18.2
Other op inc. 1.60    2.20
Staff costs   29.3.   29.5
Other op exp. 38.5. 36.1
Profit b4 tax  40.3   39.0
Forex gain.   32.4.  (2.49)
Fair value     23.7.   3.88
Total profit   88.8.  34.2

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