UBA reduces interim dividend to shareholders as H1 profit drops by 22%

United Bank for Africa (UBA) Plc released its unaudited financial statements for half-year 2020, and it was quite underwhelming due to a significant profit decline.

A copy of the earnings report, which was seen by Business Elites Africa, showed that profit dropped sharply by 22% to N44.4 billion, as against N56.7 billion recorded during the comparable period in 2019.

Meanwhile, the tier-1 bank’s interest income for the period grew by just 0.3% to N205.6 billion, up from N204.9 billion in H1 2019. Gross earnings also grew to N300.2 billion, up from N294 billion recorded in the same period of 2019.

In view of the significant drop in profit, the company’s board of directors recommended an interim dividend payout of 17 kobo, 15% lower than than 20 kobo that was paid to shareholders during the corresponding period in 2019.

Note that United Bank for Africa Plc is one of Nigeria’s biggest banks. Incorporated in 1961 and listed on the Nigerian Stock Exchange on March 31st, 1970, UBA Plc currently has a market capitalisation of N224 billion. Total assets as at June 2020 is N6.8 billion.