UBA bank pre-tax profit soars 347pc to Sh105 million

What you need to know:

United Bank for Africa (UBA) Kenya has posted a Sh105 million profit before tax for the period ending December 2019, on the back of growth in interest and non-funded incomes as well as tight control over costs.
The profit represents a 347 percent year-on-year growth.
The pan-African bank has been on a growth race operating in a competitive environment for more than 10 years that has seen it shift focus to SME and consumer financing needs to grow its loan book.

UBA Kenya, part of Lagos-based banking multinational UBA Group, has posted a Sh105 million profit before tax for the period ending December 2019 on the back of growth in interest and non-funded incomes as well as tight control over costs.

The jump represents a 347 percent year-on-year growth.

The pan-African bank has been on a growth race operating in a competitive environment for more than 10 years that has seen it shift focus to SME and consumer financing needs to grow its loan book.

During the year, UBA Kenya announced a financing agreement of up to Sh12 billion ($125 million) with an integrated agricultural group, Export Trading Group (ETG).

The bank’s loan book, deposits and asset base grew by five percent, 15 percent and five percent respectively – largely due to on boarding of new customers as well as increase in the wallet share of existing customers.

“The Bank’s impressive performance reflects the strength and sustainability of our business and effective execution of our corporate strategy. We are confident of better performance in 2020,” UBA Kenya Chairman Mr James Olubayi said.

A Think Business Banking Tariff Survey conducted in 2017 showed UBA beat large commercial banks in costs charged to small and medium-sized enterprises (SMEs).

“This year the bank will continue to make strategic investments, as we endeavour to provide customers with innovative and convenient banking solutions, further entrenching our vision to be the undisputed leading and dominant financial services institution in Africa,” Mr Olubayi said.