By Adedapo Adesanya
Tier-one lender, the United Bank for Africa (UBA) Plc, will pay its shareholders 35 kobo as final dividend for the fiscal year 2020.
Business Post observed that this represents a 56.3 per cent or 45 kobo decline from the 80 kobo paid in the corresponding period of 2019.
This is happening despite the group recording a 10.8 per cent increase in its gross earning for the year ended December 31, 2020, as there were significant increases in the three main operating segments.
The decision to cut the cash reward to investors may have been influenced by the harsh effect of COVID-19 pandemic on the business environment in the year under review.
This will be the first time in the last five years that the company will be paying a lower dividend. In the 2015 fiscal year, it paid shareholders 40 kobo per unit and in 2016, it was increased to 55 kobo per unit.
In 2017, UBA raised its dividend to 65 kobo per share and in the 2018 financial year, the dividend payout was retained at 65 kobo per unit, but it was increased to 80 kobo per share in the 2019 fiscal year.
A look at the performance of UBA last year showed that its revenue increased to N620.4 billion from N559.8 billion achieved in the previous year, indicating a N60.6 billion rise.
Business Post analysis further showed that in UBA’s three major business groups – Corporate banking; Retail/Commercial banking; and Treasury and Financial Markets, there were significant improvements on record.
At its corporate arm, which provides a broad range of financial solutions to multinational organisations and financial institutions, raked N201.0 billion as revenue, 10.8 per cent or N19.6 billion higher than N181.4 billion in 2019.
Its Retail/Commercial banking wing, which serves the middle and retail segments of the market, grew by 10.8 per cent or N20.9 billion to N214.4 billion from N193.5 billion in 12 months.
Also, the Treasury and Financial Markets, which provides innovative financing and risk management solutions and advisory services to UBA’s corporate and institutional customers, appreciated by 10.8 [per cent or N20.0 billion to N204.9 billion from N184.9 billion.
A look at the bottom line of the results showed that there was an increase in the Profit After Tax (PAT) by N24.7 billion or 27.7 per cent to N113.8 billion from N89.1 billion recorded in 2019.
In the financial statements released by the board to the Nigerian Stock Exchange (NSE), UBA said proposed final dividend of 35 kobo would be presented for approval to shareholders at the next Annual General Meeting (AGM) fixed for Thursday, April 1, 2021, at the UBA House in Lagos by 10:00am.
Modupe Gbadeyanka