UNITED BANK FOR AFRICA 2019 HALF YEAR FINANCIAL PERFORMANCE REVIEW
Gross Earnings: The Bank’s gross earnings as at 2019 half year report inched higher by 13.87% to N293.690Billion compared with the gross earnings of N257.918 Billion earned as at 30th June, 2018, this growth was driven by appreciation recorded on Interest Income, Fees & Commission and Net trading & foreign Exchange Income as they all appreciated by 9.39%, 14.18% and 60.08% respectively. The growth on Interest income revenue was fueled by interest earned from Cash & Bank Balance, Treasury Bills and Other earning asset, while fees & commission growth was driven by Remittance fee & fund transfer fee and Net Trading & Exchange income growth was as a result of 191% growth in Fixed Income Securities and 128% growth in Foreign Exchange trading income.
Revenue: The Bank’s Core Revenue line recorded a 9.39% growth as interest income rose to N204.885 Billion for 2019 half year as against N187.294 Billion for 2018 half year , which was fueled by growth recorded on other earning asset that inched higher by 161%.
Total Operating Cost: The Banks total operating cost comprises of Interest Expense, Credit Loss Expense and Operating Expenses, the Bank interest expense inched higher by 24.33%, which was as a result of interest expense incurred on deposits from Banks and deposits from Customers, while the Bank credit impairment declined by 53.65%, this was fueled by 71% & 58% decline recorded on allowance for credit losses on loans and advances to customer and credit losses write off on loans and advances. With regards to the operating expenses, it inched higher by 5.67%, as a result of 56% growth in depreciation and amortization.
Bottom Line: The Bank’s significant growth in its PAT is attributed to improved performance in its revenue line that was able to accommodate the growing trend of its operating cost, also the PAT was complemented by the decline on credit losses provision, as such for 2019 half year the Bank grew its PAT by 29.56% to N56.74Billion.