Bloomberg News

United Bank Rises Most in 2 Months on Profit Gain: Lagos Mover

July 11, 2012

United Bank for Africa Plc, Nigeria’s fourth-biggest lender by market value, rallied the most in almost two months after its second-quarter profit more than doubled.

The stock climbed 4.9 percent to close at 4.29 naira in Lagos, the biggest gain since May 14.

Net income for the period through June jumped to 27.1 billion naira ($168 million) from 10.3 billion naira a year earlier, the Lagos-based lender said yesterday. Revenue increased to 111 billion naira from 91.27 billion naira.

“The improvements confirm that the recovery in UBA’s financials at the time of publication of its Q1 2012 financials have continued into Q2,” FBN Capital wrote in an e-mailed note to clients yesterday.

UBA recorded a net loss of 9.65 billion naira last year, compared with a profit of 598 million naira a year earlier, it said April 18.

“To sustain the impressive performance in the first half, they need to keep impairment charges low and sustain the improvement in net interest margins that we saw from the first quarter into the second quarter,” Adesoji Solanke, a Lagos- based Africa bank analyst at Renaissance Capital, said by phone today.

To contact the reporter on this story: Vincent Nwanma in Lagos at vnwanma@bloomberg.net

To contact the editor responsible for this story: Dulue Mbachu at dmbachu@bloomberg.net


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