Shareholders of United Bank for Africa, UBA Plc, have given the Board of Directors a nod to go ahead with payment of N16.491 billion dividend recommended for the year ending December 31, 2013.
The dividend so approved amounted to 50 kobo per ordinary share of 50kobo each and will be payable to shareholder whose names appeared on the register of members as at April 7th, 2014. The dividend will be paid on Monday, April 28th, 2014.
Speaking on behalf of other shareholders at the 52nd Annual General Meeting, AGM, in Lagos, trio of Farouk Umar, Bisi Bakare and Sir Sunny Nwosu, commended the bank for sustaining its profitability and for the 50 kobo dividend declared.
“We are all happy with the result. We are aware of the regulatory challenges the banking sector is facing. In the last few years, CBN has come out with so many regulations that are not favourable to banks; there is increase in cash reserve ratio, CRR, and AMCON has also increased their charges on banks, but you did well despite all these,” said Farouk Umar, one of the shareholders.
“The board and management should be commended for the way they handled last year’s operations of the bank, they have done well and we look forward to a better dividend next year,” added Sir Sunny Nwosu, National Coordinator, Independent Shareholders Association of Nigeria, ISAN.
Addressing shareholders at the meeting, the chairman, AMB Joseph Keshi, said the bank braced the odds in the banking industry in 2013 and was able to deliver value to the shareholders, due to its resilience business model.
He said that the bank has adequately resourced and re-aligned its structures to optimise emerging opportunities across all regional blocs, while also adopting appropriate risk management frameworks to mitigate likely exposures in its operations both within the local and global environment.
Speaking on the bank’s financial performance, Keshi said the Group recorded gross earnings of N264.7 billion, 20 percent increase over N22.1 billion posted in 2012, adding that headline performance was majorly buoyed by growth in interest income and non-interest revenue.
“Loan growth and improved pricing boosted interest income, which grew by 24 percent, whilst non-interest income grew by a modest 15 percent, affected by reduction in Commission on Turnover, CoT, charges.
Profit before tax was up eight percent compared to N52.0 billion in 2012. However, Group’s profit declined by 14 percent,” he said.
He, however, assured that UBA is better poised to deliver better performance in 2014.
as the underlying momentum of the Group’s business continues to be robust.
Also speaking, Group Managing Director/CEO, UBA Plc, Phillips Oduoza said the bank’s African subsidiaries recorded overall revenue growth of 22 percent in 2013 to N49.9 billion, from N41.5 billion in 2012.
He stressed that revenue growth rate in 2013 surpassed the 18 percent growth in the previous year. Also, the equity base attributable to the African subsidiaries remained strong at N55.2 billion, from N45.7 billion in 2012.