DGAP-News: ADC African Development Corporation AG / Key word(s):
Quarter Results
ADC's banking investment, Union Bank of Nigeria (UBN), reports
continued profitability in Q1 2014 ++ Core banking activity emphasized
with divestment of four non-core subsidiaries
07.05.2014 / 16:12
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ADC's banking investment, Union Bank of Nigeria (UBN) released its Q1 2014
financial results, delivering gross earnings of NGN 26.0 billion (EUR 116.7
million) at group level, down 11% year-on-year, and NGN 24.7 billion (EUR
110.9 million) at core bank level, slightly down compared to prior year
period. Profit before tax came in at NGN 5.0 billion (EUR 22.5 million) at
group level, down 35% year-on-year. At core bank level, profit before tax
was NGN 4.4 billion (EUR 19.9 million), down 4% from prior year results.
Group net interest income at the end of March 2014, totaled NGN 13.0
billion (EUR 58.2 million), a decline of 12% compared with Q1 2013, while
core bank net interest income of NGN 12.6 billion (EUR 56.5 million)
declined 8%. The reduction in net interest largely reflects declines in
Nigerian treasury yields, since 64% of UBN's interest earning assets at the
end of Q1 are held in either investment securities or interest earning
cash. Group and core bank non-interest income increased to NGN 6.6 billion
(EUR 29.5 million) and NGN 6.3 billion (EUR 28.1 million) respectively,
boosted by disposals. UBN divested four of its non-core subsidiaries during
the quarter, regulatory approval of these sales are expected during the
course of the year.
Net loans were down 4% to NGN 220.5 billion (EUR 972.8 million) at group
level compared to year-end 2013 financial results and down 3% to NGN 203.1
billion (EUR 896.0 million) at core bank level. Deposits decreased by 3% at
group level from year-end and by 5% at core bank level, ending the quarter
at NGN 457.7 billion (EUR 2.0 billion). The cash reserve requirement on
public sector funds increased to 75% in January 2014; reducing the bank's
yield on public sector deposits.
Operating expenses were down by 2% at core bank level to NGN 13.7 billion
(EUR 61.6 million) versus prior year figures. The cost-to-income ratio
ended the quarter at 76.0%, up from 75.3% in the same period of last year.
Gross loan-to-deposit ratio was 52% at group level and 49% at core bank
level. UBN's liquidity ratio remains strong, with a liquidity ratio of 63%.
The bank's capital base remains strong, notwithstanding the growth in risk
weighted assets that started in 2013, resulting in a Capital Adequacy Ratio
(CAR) of 24%, well above the regulatory requirement of 15%.
Karima Ola, member of the Management Board of ADC commented, "UBN's Q1 2014
results show the group maintaining its profitability while delivering on
some key operational metrics that support the bank's transformation and new
strategy. UBN's rollout of its branch optimization program is on-track,
with a total of 66 branches expected to be remodeled by the end of this
year; completed branches to date are yielding positive financial results,
outperforming the rest of the branch network. UBN expects 30% loan growth
throughout the year, as well as remaining on track for delivery of key
transformation and profitability goals. We expect Nigeria's robust 2014
economic fundamentals to support loan and deposit growth and improve the
outlook for impairments for the sector, which should also partially offset
pressure on income from regulatory change to date."
The UBN results publication will be made available for download via the
following link on the ADC website:
www.african-development.com/en/operations/banking-operations/union-bank-of
-nigeria-ubn/
About ADC
ADC African Development Corporation AG (ADC) (ISIN: DE000A1E8NW9;
Bloomberg: AZC.GR, www.african-development.com), is a German listed,
emerging pan-African banking group. ADC has a strong footprint in Southern
Africa via BancABC, a regional commercial banking platform operating in
Botswana, Mozambique, Tanzania, Zambia and Zimbabwe as well as exposure to
West Africa via Union Bank of Nigeria. In addition to its banking
operations, ADC has a private equity portfolio active in growth markets
across sub-Saharan Africa. ADC follows an active management approach with a
team of experts that comprise operational banking management, investment
banking and merchant banking expertise.
Contact:
Investor Relations
investor-relations@african-development.com
T +49 69 719 12 80 119
End of Corporate News
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Language: English
Company: ADC African Development Corporation AG
Grüneburgweg 18
60322 Frankfurt/Main
Germany
Phone: +49 69 719 12 80 119
Fax: +49 69 719 12 80 115
E-mail: info@african-development.com
Internet: www.african-development.com
ISIN: DE000A1E8NW9
WKN: A1E8NW
Listed: Freiverkehr in Berlin, Düsseldorf; Frankfurt in Open
Market (Entry Standard)
End of News DGAP News-Service
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267004 07.05.2014
DGAP-News: ADC's banking investment, Union Bank of Nigeria (UBN), reports continued profitability in Q1 2014 ++ Core banking activity emphasized with divestment of four non-core subsidiaries
| Source: EQS Group AG