Here is Afrinvest’s take on the UBA’s recently released Half-year 2010 results:

6M’10 Results:

1. UBA reported a PBT of N12.2bn, indicating a growth of 370.4% from the N2.6bn recorded for the group as at end of June 2009.
2. Total Assets grew by 7.9% to N1.6tn (US$11.1bn) from N1.5tn (US$10.3bn) reported in December 2009.
3. Deposits grew by 9.2% to N1.4tn (US$9.2bn) from N1.3tn (US$8.4bn) as at December 2009 and a 6.8% Quarter-on Quarter increase from the N1.3tn (US$8.6bn) reported in March 2010.

FY’10 Outlook:

1. We remain concerned about the banks efficiency ratios especially its cost-to-income ratio.
2. We believe the bank will continue to leverage its operations in 16 African countries, strong retail banking franchise and wide array of its products to its over 7.5 million customers to grow both top and bottom numbers.
3. We therefore maintain a positive outlook on UBA based on its Pan-African expansion strategy in its bid to increasingly diversify its income base.
4. On this basis, we reiterate our ACCUMULATE recommendation on the bank at current valuations.

Download the file below:
Afrinvest – UBA 6M ’10 Research Update – July 2010