DGAP-News: ADC's banking investment, Union Bank of Nigeria (UBN), reports continued profitability in Q1 2014 ++ Core banking activity emphasized with divestm...

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

DGAP-News: ADC African Development Corporation AG / Schlagwort(e):

Quartalsergebnis

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.

Kontakt:

Investor Relations

investor-relations@african-development.com

T +49 69 719 12 80 119

Ende der Corporate News

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07.05.2014 Veröffentlichung einer Corporate News/Finanznachricht,

übermittelt durch die DGAP - ein Unternehmen der EQS Group AG.

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Sprache: Deutsch

Unternehmen: ADC African Development Corporation AG

Grüneburgweg 18

60322 Frankfurt/Main

Deutschland

Telefon: +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

Börsen: Freiverkehr in Berlin, Düsseldorf; Frankfurt in Open

Market (Entry Standard)

Ende der Mitteilung DGAP News-Service

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