United Bank For Africa Plc 2016 Financial Summary

12 Months Report UNITED BANK FOR AFRICA PLC
	2016 N'000	2015 N'000	change	Year End
Revenue	383,970,000	314,844,000	22%	December
Profit/Loss before taxation	90,642,000	68,454,000	32%
Profit/Loss for the period	72,264,000	59,654,000	21%
Issued Shares (Units)	36,279,526,321	36,279,526,321
Basic Earnings Per Shares (Kobo)	204.00	179.00	14%
Last total dividend paid (Kobo)	55.00	40.00	38%

Quarter on Quarter Performance

Revenue                                                                   PAT

N'000                                                                       N'000

Q1: #74,134,000                                                      Q1: #14,713,000

Q2: #91,446,000                                                      Q2: #17,908,000

Q3: #99,947,000                                                      Q3: #19,648,000

Q4: #118,443,000                                                    Q4: #19,995,000

UBA maintained an average of #95,992,500,000 in terms of revenue with respect to 2016 Financial result. in the same vein, #18,0066,000,000 was maintained in terms of PAT.

A closer look at the result revealed the followings:

UBA benefited from the devaluation of the Naira, the net trading and foreign exchange income increased by 115% from #20.3billion to #43.8billion . The increased was swelled by foreign currency revaluation gain of #15.1billion.

Income tax expense increased by 109% from #8.8billion to #18.3billion with adjustment for current tax of prior period coming in with #4.2billion.

UBA increased its Loan and Advances these was expected to support interest income. The Loan to other Banks increased by 56% from #14.6billion to #22.7billion. On the other hand, Loan to customers increased by 45% from #1.03trillion to #1.5trillion.

The bank did well in raking in deposit to support the above, with hot and durable funds in #109Billion deposit from Banks in hot money and 2.4trillion in durable fund in deposit from customers respectively. it should be noted that this liability head increased by 79% and 19% for deposit from Banks and customers respectively. 

Impairment Loss on Loans and receivables:

Specific impairment increased by 814% from #2.2billion to #20.8billion. This is alarming and it explains the crisis brewing in that sector, on the other hand, portfolio impairment increased by 269% from #1.2billion to #4.4billion. While impairment loss on account receivables was 231% above the previous year.

The Bank seems to have come to term with electronic banking and one can see the implementation of the last rights issue covenants.   The Electronic banking income increased by 77% from #17.1billion to #30.4billion.

The Bank seems to have overcame the event of 2014, because the 2015 and 2016 result had been impressive and the bank had also in those periods compensated its shareholder well through increasing dividend payouts. The bank declared a dividend of 55kobo this is in addition to 20kobo earlier paid as interim dividend. with a dividend yield of 10.20% the stock should trade ahead of Access Bank in the coming days.

Corporate Action

Proposed Dividend: 55kobo per Share

Proposed Bonus : Nil

Closure Date : April 3, 2017

AGM Date: April 7,2017 10.00am)

Payment Date: April 10, 2017

AGM Venue: Eko Hotel and Suites, Plot 1415, Ademola Adetokunbo Street Victoria Island, Lagos