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UBA Capital Plc, the first and only investment bank listed on the Nigerian Stock Exchange (NSE) surmounted the challenging operating environment and recorded a growth of 106 per cent in profit after tax to N1.8 billion for the year ended December 31, 2013.
Speaking at the first annual general meeting in Lagos yesterday, Chairman of UBA Capital, Mr. Chika Mordi, said the company posted an impressive performance in the first year of its operations.
According to him, the business activities of the company covered investment banking, asset management, trusteeship and securities brokerage, saying all the business lines operated profitably and collectively contributed to positive results.
Mordi said as a result of the diversification of the company’s business lines and expansion in each business line, gross earnings grew by 241 per cent from N1.3 billion to N4.6 billion.
“Profit after tax from continuing operation grew by 106 per cent to N1.8 billon from N856 million. This is as a result of growth in our various business lines as well as a more diversified income stream and efficient cost management,” he said.
The directors recommended a dividend of 25 kobo, which was approved by the shareholders at the meeting.
Mordi assured shareholders that with the strategies adopted and the structures the board has out in place, the 2013 performance would not only be sustained but also be surpassed.
Speaking in the same, the Group Chief Executive Officer of UBA Capital, Mrs. Oluwatoyin Sanni said the strong gross earnings were driven by fees and commission from execution of various investment banking mandates and generated from various funds under the management.
Sanni said notwithstanding the challenging start for the money and capital markets in 2014, the company is confident of the ability of its leadership to optimise market conditions to deliver consistent results.
“We are convinced that our renewed marketing vigour, concerted efforts towards repositioning the company, strengthening of the workforce at all levels, service delivery and efficiency drivers such as group shared services initiative and robust new information technology infrastructure platform will support accelerated business growth, the improvement of service delivery and appreciable cost improvements. All these are expected to enhance productivity, revenue generation and profitability,” Sanni said.