United Bank for Africa Plc Unaudited Results for the First Quarter Ended March 31, 2018

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1 United Bank fr Africa Plc Unaudited Results fr the First Quarter Ended March 31, 2018 Africa's Glbal Bank UBA STARTS STRONG, GROWING FIRST QUARTER EARNINGS BY 18% This Earnings Press Release shuld be read in cnjunctin with the Unaudited 2018 First Quarter Cnslidated Financial Statements. The Earnings Press Release is als available n ur website at This analysis is dated April 23, Unless therwise indicated, all amunts are expressed in Nigerian Naira, and have been primarily derived frm the Bank s Cnslidated Financial Statements, prepared in accrdance with the Internatinal Financial Reprting Standards ( IFRS ). The accunting plicies used in the preparatin f these cnslidated financial statements are cnsistent with thse used in the Bank s Audited 2017 Full Year Financial Statements. Additinal infrmatin relating t the Bank is available n the Bank s website LAGOS, NIGERIA April 23, 2018 United Bank fr Africa Plc ( UBA, the Bank r the Grup ) annunced its Unaudited 2018 First Quarter Financial Results. Grss earnings grew by 18% t N119 billin and the Grup delivered a strng 18% annualized return n average equity. Highlights: Incme Statement Grss Earnings: N119.4 billin, cmpared t N101.2 billin in 2017Q1 (17.9% YY grwth). Operating Incme: N77.6 billin, cmpared t N72.6 billin in 2017Q1 (6.9% YY grwth). Operating Expenses f N49.7 billin, cmpared t N44.0 billin in 2017Q1 (12.8% YY grwth). Prfit Befre Tax: N26.6 billin, cmpared t 25.5 billin in 2017Q1 (4.3% YY grwth). Prfit After Tax: N23.7 billin, a 6.2% YY grwth cmpared t N22.4 billin in 2017Q1. Annualized Return n Average Equity: 18%. Balance Sheet Ttal Assets: N4.30 trillin, cmpared t N4.07 trillin as at 2017FY (5.5% YY grwth). Net Lans: N1.61 trillin; relatively flat cmpared t N1.65 trillin lan prtfli as at 2017FY. Custmer Depsits: N2.85 billin, cmpared t N2.73 trillin as at 2017FY; representing 4.1% YY grwth. Sharehlders Funds: N537.6 billin, up 17.8% YY; reflecting strng internal capital generatin. 1

2 Cmmenting n the result, Kennedy Uzka, the GMD/CEO, said; "This set f first quarter result is a gd start t the year and a reflectin f ur capacity t sustainably grw earnings ver the medium t lng term. We recrded 18% grwth in grss earnings, as bth interest and nn-interest incme grew 18% and 19% respectively. Ntwithstanding the mderatin in svereign yield in Nigeria and Ghana, we achieved a 60bps imprvement in net interest margin (NIM) t 7.6%, as we extract efficiency gains frm balance sheet management. I am particularly pleased with the 8% year-t-date grwth in ur retail depsit, as it reflected the benefit f imprved custmer service and cntinued custmer acquisitin. We are cmmitted t exceeding ur 2018 depsit grwth target in the year, with strategic fcus n retail, lw cst savings and current accunts, which is critical t sustaining ur NIM uptrend. Whilst we are cnstructive n the recvery f the Nigerian ecnmy and imprving fundamentals f mst African cuntries where we perate, we remain prudent in ur risk asset creatin. We are cmmitted t respnsible lending, as we seek t maintain ur asset quality. Reflecting ur market share gain, we have grwn the balance by 6% in the first three mnths f the year, as we increasingly becme systemically imprtant acrss the nineteen ex-nigeria markets, where we perate in Africa. Barring unfreseen circumstances, we lk frward t sustaining this strng perfrmance thrugh the year, with the primary bjective f delivering superir return t ur sharehlders. Als speaking n UBA s financial perfrmance and psitin, the Grup CFO, Ug Nwaghdh said; We are diligently executing ur pririties fr the year, as we fcus n prfitable grwth. We are making strng prgress in Nigeria, where ur cntinuus market share gain is translating int higher prfit. We grew nn-funded incme by 20%, driven by annuity-type fferings in digital banking. Precisely, the electrnic banking incme grew 33% year-n-year and we recrded an impressive 40% grwth in trade service incme, as custmers becme lyal ambassadrs f ur enhanced service channels and custmer service. I am pleased that ur drive twards ptimal scale acrss ur subsidiary peratins is prgressing well. Mre imprtantly, the cntributin f these freign peratins t the Grup s prfit is impressively reflective f gegraphic diversificatin. We remain reslute n ur determinatin t leverage grwing scale acrss ur freign peratins t extract further cst efficiency, with an bjective t cntinuusly mderate ur cst-t-incme rati. Mre s, ur prfitability in the first quarter f the year reinfrces the Grup s capacity t deliver n target, as ur prfit fr the quarter translates t 18% return n average equity. 2

3 Statements f Cmprehensive Incme fr the Three Mnths Ended 31 March Grup In millins f Nigerian Naira Grss earnings 119, ,249 I nterest incme 90,333 76,764 I nterest expense (36,780) (25,175) Net interest incme 53,553 51,589 Fees and cmmissin incme 20,028 16,502 Fees and cmmissin expense (5,032) (3,507) Net fee and cmmissin incme 14,996 12,995 Net trading and frign exchange incme 6,732 7,746 Other perating incme 2, Ttal nn-interest incme 24,001 20,978 Operating incme 77,554 72,567 Net impairment lss n lans and receiv ables (1,454) (3,103) Net perating incme after net impairment lss n lans and receivables 76,100 69,464 Emplyee benefit expenses (17,536) (16,667) Depreciatin and amrtisatin (2,787) (2,345) Other perating expenses (29,356) (25,011) Ttal perating expenses (49,679) (44,023) Share f prfit f equity-accunted investee Prfit befre incme tax 26,555-25,470 - Taxatin charge (2,819) (3,120) Prfit fr the perid 23,736 22,350 Other cmprehensive incme Items that will be reclassified t incme statement Exchange difference n translatin f freign peratins 4, Fair v alue gains n av ailable-fr-sale inv estments 6,620 1,132 Other cmprehensive incme, net f tax 11,239 1,532 Ttal cmprehensive incme fr the perid 34,975 23,882 Prfit attributable t: Owners f Parent 22,921 21,483 Nn-cntrlling interest Prfit fr the perid 23,736 22,350 Ttal cmprehensive incme attributable t : Owners f Parent 33,031 22,787 Nn-cntrlling interest 1,944 1,095 Ttal cmprehensive incme fr the perid 34,975 23,882 Basic and diluted earnings per share (annualised) expressed in NGN

4 Cnslidated and Separate Statements f Financial Psitin Grup As at Mar-18 Dec-17 In millins f Nigerian Naira ASSETS Cash and bank balances 1,122, ,083 Financial assets held fr trading 30,387 31,898 Deriv ativ e assets 5,055 8,227 Lans and advances t banks 31,678 20,640 Lans and advances t custmers 1,613,878 1,650,891 I nv estment securities 1,227,717 1,216,053 Other assets 105,850 86,729 I nv estment in equity-accunted inv estee 3,352 2,860 Prperty and equipment 108, ,636 Intangible assets 16,685 16,891 Deferred tax assets 28,871 29,566 TOTAL ASSETS 4,295,187 4,069,474 LIABILITIES Deriv ativ e liabilities Depsits frm banks 164, ,289 Depsits frm custmers 2,846,736 2,733,348 Other liabilities 146,996 96,622 Current tax liabilities 3,697 7,668 Brrw ings 529, ,209 Subrdinated liabilities 65,881 65,741 Deferred tax liabilities TOTAL LIABILITIES 3,757,568 3,540,040 EQUITY Share capital 17,100 17,100 Share premium 98,715 98,715 Retained earnings 177, ,527 Other reserv es 224, ,861 EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT 517, ,203 Nn-cntrlling interests 20,175 18,231 TOTAL EQUITY 537, ,434 TOTAL LIABILITIES AND EQUITY 4,295,187 4,069,474 4

5 Editr s cmment United Bank fr Africa Plc is a leading Pan-African financial institutin, ffering banking services t mre than furteen millin custmers, acrss 1,000 business ffices and custmer tuch pints in 19 African cuntries. With presence in New Yrk, Lndn and Paris, UBA is cnnecting peple and businesses acrss Africa thrugh retail, cmmercial and crprate banking, innvative crss-brder payments and remittances, trade finance and ancillary banking services. Cautin regarding frward lking statements Frm time t time, the Bank makes written and/r ral frward-lking statements in press releases and ther cmmunicatins. In additin, representatives f the Bank may make frward-lking statements rally t analysts, investrs, the media and thers. All such statements are intended t be frward lking statements. Frward lking statements include, but are nt limited t, statements regarding the Bank s bjectives and pririties fr 2018 and beynd as well as strategies t achieve them, and the Bank s anticipated financial perfrmance. Frward lking statements are typically identified by wrds such as will, shuld, believe, expect, anticipate, intend, estimate, may and culd. By their very nature, these statements require the Bank t make assumptins and are subject t inherent risks and uncertainties, general and specific. Especially in light f the uncertainty related t the financial, ecnmic and regulatry envirnments, such risks and uncertainties many f which are beynd the Bank s cntrl and the effects f which are difficult t predict may cause actual results t differ materially frm the expectatins expressed in the frward-lking statements. Risk factrs that culd cause such differences include: credit, market (including equity, cmmdity, freign exchange, and interest rate), liquidity, peratinal, reputatinal, insurance, strategic, regulatry, legal, envirnmental, and ther risks. All such factrs shuld be cnsidered carefully, as well as ther uncertainties and ptential events, and the inherent uncertainty f frward lking statements, when making decisins with respect t the Bank and we cautin readers nt t place undue reliance n the Bank s frward lking statements. Any frward lking statements cntained in this press release represent the views f management nly as f the date heref and are presented fr the purpse f assisting the Bank s investrs and analysts in understanding the Bank s financial psitin, bjectives and pririties and anticipated financial perfrmance as at and fr the perids ended n the dates presented, and may nt be apprpriate fr ther purpses. The Bank des nt undertake t update any frward-lking statements, whether written r ral, that may be made frm time t time by r n its behalf, except as required under applicable securities legislatin. 5