The net profit for United Bank for Africa (UBA) for the six months to June dropped 16 per cent to N316.4 billion, the audited report of the pan-Africa lender showed on Monday after release.
Post-tax profit for Nigeria’s second-biggest lender took a battering after it incurred a N311.7 billion net fair value loss on derivatives in a shift from a gain of as much as N348.4 billion a year earlier, setting it up for a 76.5 per cent slump in net trading and foreign exchange gain.
The income the top-tier bank generated from trading in financial assets and foreign exchange dwindled to N98.2 billion from N418.3 billion during the period.
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UBA’s share price had quickened by 9.9 per cent as early as 10:58 West Africa Time in Lagos, only a breath away from the maximum upper daily limit permitted by the Nigerian Exchange, as investors’ cash poured into the stock after the announcement that shareholders would receive four times what they earned as interim dividend a year ago.
It means the company will pay shareholders a total cash reward of N68.4 billion for the period, which equals N2 per share.
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