Tony Elumulu, Chairman of United Bank for Africa, stated on Thursday that the firm was able to reduce 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 stated this in the bank’s 2021 Annual Report and Accounts, which were delivered at the bank’s 60th Annual General Meeting in Abuja.
Elumelu reassured shareholders and investors that the bank was committed to continuing on its present growth path, and that its efforts to diversify its operations across Africa and beyond had continued to deliver increasing returns.
“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 from 4.7 percent in 2020,” the UBA chairman added shortly.
“We were able to do this despite the fact that our loan book increased to N2.83 trillion in the year (2021).”
He also mentioned that, despite the adverse business environment over the last two years, the bank’s investment initiatives had resulted in massive profits for its investors.
“As a group, I am proud of how we have been able to further consolidate on the new skills we have established, creative customer solutions we have implemented, efficiency improvements recorded, and growth prospects we have exploited from a recovering globe,” Elumelu said at the AGM.
“These were the foundations for your group’s very good financial performance and development in 2021,” he said, “confirming the wisdom of the investments we made and the approach we pursued to assure the diversification and durability of our business model.”
UBA’s earnings before tax increased by 20.3 percent to N153.1 billion at the end of the 2021 financial year, compared to N127.3 billion at the end of the previous year.
Its profit after tax increased by 8.7% 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 each ordinary share of 50 kobo for the financial 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, said the company’s operations outside of Nigeria was going well, pointing out that its branch in the United Kingdom had grown significantly.
“As of July 2021, UBA UK began to make a profit, and they are still doing well to this day, as do several of our African companies,” he stated.
“The truth is that we are motivated by the opportunities and potential in each of the locations where we have invested, and we are pleased with our progress thus far.”
