UBA Customer Loans Increased To N2.83 Trillion In 2021 – Elumelu

THE Chairman of United Bank for Africa, Tony Elumulu, stated on Thursday that the firm was able to drive down its non-performing loans to a historic low of 3.6 percent in 2021, despite the bank’s loan book growing to N2.83 trillion in the same year.

He announced this in the bank’s 2021 Annual Report and Accounts, which were issued at the bank’s 60th Annual General Meeting in Abuja.

Elumelu informed shareholders and investors that the bank was committed to maintaining its present growth trajectory, adding that its efforts to diversify its operations across Africa and beyond had continued to deliver increasing returns.

On the bank’s loan performance, the UBA chairman stated succinctly, “Through our internal credit risk assessment models and dynamic recovery management, we were able to further drive down the ratio of our non-performing loans to a record low of 3.6 percent, down from 4.7 percent in 2020.”

“This was accomplished despite the fact that our loan book increased to N2.83 trillion in the fiscal year (2021).”

He also stated that, despite the adverse business environment of the last two years, the bank’s investment decisions during the last several years have resulted in massive returns for its investors.

“I am proud of how, as a group, we have been able to further consolidate on the new capabilities we have built, novel customer solutions we have deployed, efficiency gains we have recorded, and growth prospects we have leveraged from a recovering world,” Elumelu said at the AGM.

“These were the building blocks for your group’s very strong financial performance and growth in 2021,” he continued, “further confirming the wisdom of the investments we made and the strategy we pursued to ensure the diversification and sustainability of our business model.”

UBA’s profit before tax increased by 20.3 percent to N153.1 billion at the end of the fiscal year 2021, compared to N127.3 billion at the end of the fiscal year 2020.

Its earnings after tax increased by 8.7 percent to N118.7 billion in 2021, up from N109.2 billion the previous year.

As a result, the bank proposed a final dividend of 80 kobo for every ordinary share of 50 kobo for the fiscal year ending December 31, 2021, bringing the total payout for the year to N1.00, after paying an interim dividend of 20 kobo.

Kennedy Uzoka, the bank’s Group Managing Director, stated that the company’s operations outside of Nigeria was performing well, pointing out that its branch in the United Kingdom had grown significantly.

“As of July 2021, UBA UK began making a profit, and they are still doing well to this day,” he stated, “and the same can be said for many of our African subsidiaries.”

“The truth is that we are motivated by the opportunities and potential in each of the geographies in which we have invested, and we are pleased with our progress thus far.”