2009 Annual Report and Financial Statements - UBA Plc

More documents

Recommendations

Info

PROFIT BEFORE TAX (PBT) Our profi t before tax (PBT) in FY09 attests to the fact that 2009 was indeed a tough year. The Group’s focus on extending distribution network across Africa contributed to growth in operating costs from these locations, without commensurate momentum of earnings growth as some of the subsidiaries across Africa are still budding; though show strong potentials for breakeven. Furthermore, exceptional write-off s and reserves for diminution in assets also impacted profi tability. EARNINGS PER SHARE (EPS) With the decline in our PBT levels, earnings on each outstanding share of the Bank expectedly came out low at N0.10. However, we remain gratifi ed by the fact that the Bank sustained its profi tability in spite of the tough operating conditions we were faced with. BALANCE SHEET Our balance sheet size dropped slightly by 2.3% to N2.24 trillion from N2.29 trillion FY08, largely as a result of our conscious eff ort to shed costly deposits and provision charges off set against assets. However, our balance sheet still remains one of the biggest in the industry and therefore presents great opportunities to extract signifi cant scale economies. We will continue to optimise our balance sheet for utmost effi ciency in the years ahead. Profit before tax (N’billion) CAGR (2005 – 2009): -316% 60 45 30 15 0 Earnings per share (Kobo) CAGR (2005 – 2009): -61% 300 225 150 75 0 2005 2005 2006 2006 Balance sheet (N’billion) CAGR (2005 – 2009): 29% 2 400 1 800 1 200 600 0 2005 2006 2007 2007 2007 2008 2008 2008 2009 2009 2009 Annual Report 2009 23 Review of Group’s financial performance
Review of Group’s fi nancial performance (continued) DEPOSITS UBA closed the year with a deposit base of N1.25 trillion, slipping by 2% from N1.33 trillion recorded in 2008. A CAGR analysis shows 17% over the last three years. The slip in deposits resulted from the Bank’s decision to cut back on costly deposits as interest rates came under pressure. This initiative also helped in improving our net interest margins during the year. LOANS AND ADVANCES Our gross loans and advances increased 44% to N643 billion, up from N445 billion in FY08. We increased our loan portfolio by carefully selecting highly rated obligors within the key sectors of the economies in which we operate. By this loan portfolio growth, we achieved a loan-to-deposit ratio of 51.7% as against 33.4% in FY08. We continue to reinforce our risk management capacity, as we look to further improve on this ratio in FY10. CAPITAL ADEQUACY RATIO (CAR) Capital Adequacy Ratio (CAR) dropped 700 basis points to 16.3% in 2009 (6.3% above the regulatory minimum of 10%). This was attributable mainly to the growth in our risk weighted assets, as we increased our loan portfolio as well as long-term investments in our African roll out. We however, look to shore up our capital in FY10 as we commence the implementation of our fi ve-year hybrid capital funding programme. 24 Annual Report 2009 Deposits (N’billion) CAGR (2005 – 2009): 17% 1 500 1 000 500 0 Capital adequacy ratio (%) 24 16 8 0 2005 2006 2006 2007 2007 Loans and advances (N’billion) CAGR (2005 – 2009): 77% 750 500 250 0 2005 2006 2007 2008 2008 2008 2009 2009 2009
Page 1 and 2: United Bank for Africa Plc RC: 2457
Page 3 and 4: Deposits (N’Billion) 1500 1200 90
Page 5 and 6: Group at a glance Countries of oper
Page 7 and 8: Board of directors 4 Annual Report
Page 9 and 10: Board of directors (continued) 6 An
Page 11 and 12: Board of directors (continued) 8 An
Page 13 and 14: Senior management 10 Annual Report
Page 15 and 16: Chairman’s statement CHIEF FERDIN
Page 17 and 18: Chairman’s statement (continued)
Page 19 and 20: Group Managing Director/Chief Execu
Page 25: Review of Group’s fi nancial perf
Page 29 and 30: Our products and services Selected
Page 31 and 32: Corporate social responsibility rep
Page 37 and 38: Directors’ report for the period
Page 39 and 40: Directors’ report (continued) •
Page 41 and 42: Directors’ report (continued) AUD
Page 43 and 44: Corporate governance report (contin
Page 45 and 46: Report of the Audit Committee To Me
Page 47 and 48: Report of the independent auditors
Page 49 and 50: Accounting policies for the period
Page 55 and 56: Consolidated profi t and loss accou
Page 57 and 58: Consolidated cash fl ow statement f
Page 59 and 60: Notes to the consolidated fi nancia
Page 77 and 78:
Notes to the consolidated fi nancia
Page 79 and 80:
Page 81 and 82:
Page 83 and 84:
Page 85 and 86:
Page 87 and 88:
Group fi ve-year fi nancial summary
Page 89 and 90:
Risk management report ENTERPRISE-W
Page 91 and 92:
Risk management report (continued)
Page 93 and 94:
Page 95 and 96:
Page 97 and 98:
Page 99 and 100:
Page 101 and 102:
Page 103 and 104:
Page 105 and 106:
Page 107 and 108:
Page 109 and 110:
Page 111 and 112:
Page 113 and 114:
Page 115 and 116:
Page 117 and 118:
Page 119 and 120:
Shareholder information MARKET STAT
Page 121 and 122:
Shareholder information (continued)
Page 123 and 124:
Shareholder information (continued)
Page 125 and 126:
Glossary AML Anti Money Laundering
Page 127 and 128:
Corporate information (continued) N
Page 129 and 130:
Notice of annual general meeting (c
Page 131 and 132:
Notes 128 Annual Report 2009
Page 134:
e-Dividend mandate form Dear Shareh
Page 137 and 138:
Registrars UBA Registrars Limited R
show all

2009 Annual Report and Financial Statements - UBA Plc

Create successful ePaper yourself

Delete template?

Save as template?