openPR Logo
Press release

ADC African Development: ADC's newest investment, Union Bank Nigeria, reports a EUR 30 million net profit

ADC African Development Corporation GmbH & Co. KGaA: ADC's newest investment, Union Bank Nigeria, reports a EUR 30 million net profit in Q1 2012 ++ Douglas Munatsi installed as ADC board representative

06.08.2012

ADC African Development Corporation GmbH & Co. KGaA ('ADC'), ISIN DE000A1E8NW9, a fast growing pan-African banking group focused on the frontier markets of sub-Saharan Africa, is pleased to announce that its newest investment, Union Bank of Nigeria plc. (UBN), recorded EUR 30.1 million (NGN 6.3 billion) net profit for the first quarter 2012 on bank level, more than doubling its prior year first quarter results of EUR 12.7 million (NGN 2.8 billion) net profit.

UBN, one of Nigeria's longest established commercial banks with strong heritage and a pedigree brand, has recently been recapitalized by an international investor consortium, driving the turn-around of the bank.

Pending approval by the Central Bank of Nigeria (CBN), a representative of ADC has been installed on to the Board of UBN. ADC nominated Douglas Munatsi, the Chief Executive Officer of ADC's subsidiary BancABC, to represent ADC in the Board of UBN.

In the first quarter, UBN recorded an increase in its stable and low-cost depositor base, which registered 8% growth from EUR 1.9 billion (NGN 399.8 billion) at the end of 2011 to EUR 2.1 billion (NGN 432.2 billion) at the end of the first quarter 2012.

Review and disposal of significant parts of the loan book during FY2011 have led to a decrease in loans from EUR 824.6 million (NGN 180.5 billion) in Q1 2011 to EUR 651.5 million (NGN 136.8 billion) in Q1 2012 by 39%. Despite the decrease in loan book, net interest income only came down by approx. 25% from EUR 84.1 million (NGN 18.4 billion) in Q1 2011 to EUR 65.4 million (NGN 13.7 billion) in Q1 2012.

Dirk Harbecke, ADC's CEO commented: 'The first quarter numbers clearly show the potential of the bank post recapitalization. The loan to deposit ratio of 32% combined with an average net interest margin of around 11% and a capital adequacy ratio of almost 24% in Q1 2012 demonstrates the bank's potential. With the recapitalization and ongoing turnaround in governance, risk management and operational efficiency, the bank will be optimally positioned to benefit from the growing middle class and urbanization trend in Nigeria, one of the largest economies and fastest growing countries in Africa. Building on its strong capitalization, high liquidity and low NPL-ratio, we are confident that the bank will subsequently be able to build a profitable loan book and deploy its capital at an attractive risk-return profile. ADC will accompany this process actively with its board representative Douglas Munatsi, which will also contribute to strong integration of the portfolio.'

About ADC
ADC African Development Corporation (ISIN: DE000A1E8NW9; Bloomberg: AZC.GR, www.african-development.com), a member of the Angermayer, Brumm & Lange Group (www.abl-group.de), was established in September 2007 and aims to become one of the leading banking groups in sub-Saharan Africa, active in corporate and retail banking and proprietary investments. The company's success is primarily due to its local management team, which follows international best practice principles to further develop its operational companies and implements conventional international processes to increase their profitability. As the second international emerging market investor in the world, ADC was integrated into the insurance solution offered by the Multilateral Investment Guarantee Agency ('MIGA'), a member of the World Bank Group, primarily due to its strong operational approach and adherence to the highest ethical standards. This insurance offers protection against a variety of political risks, in particular the risk of radical political change.

Contact:
Investor Relations
investor-relations@african-development.com
T +49 69 719 12 80 119

Press Relations
edicto GmbH
Axel Mühlhaus
Eschersheimer Landstraße 42
60322 Frankfurt am Main
Telefon: +49 (0) 69-905 50 55 2
Email: amuehlhaus@edicto.de

This release was published on openPR.

Permanent link to this press release:

Copy
Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.

You can edit or delete your press release ADC African Development: ADC's newest investment, Union Bank Nigeria, reports a EUR 30 million net profit here

News-ID: 231787 • Views: 1212

More Releases from ADC African Development Corporation GmbH & Co. KGaA

ADC's investment, Union Bank of Nigeria (UBN), announces positive first half yea …
ADC African Development Corporation GmbH & Co. KGaA ('ADC'), ISIN DE000A1E8NW9, a fast growing pan-African banking group focused on the frontier markets of sub-Saharan Africa, announces the strong second quarter performance of Union Bank of Nigeria ('UBN'), ADC's banking asset in Nigeria. UBN delivered H1 2012 results driven by growth in net fee income and lower operating costs. At the bank level, UBN reversed last year's loss of EUR 219.1 million
ADC's associate, BancABC reports very strong half-year results
15.08.2012 ADC African Development Corporation GmbH & Co. KGaA ('ADC'), ISIN DE000A1E8NW9, a fast growing pan-African banking group focused on the frontier markets of sub-Saharan Africa, is pleased to announce that its 50.4% owned associate BancABC achieved strong results for the half-year ended 30 June 2012. The results were largely driven by significant growth in income on the back of the expansion of retail banking. Pre-tax profits grew to BWP 96
ADC takes over majority of BancABC ++ Suspension of share buyback program
14.08.2012 Dissemination of an Ad hoc announcement according to § 15 WpHG ADC African Development Corporation GmbH & Co. KGaA ('ADC'), ISIN DE000A1E8NW9, a fast growing pan-African banking group focused on the frontier markets of sub-Saharan Africa, is pleased to announce that it has now become the majority shareholder in ABC Holdings Limited ('BancABC') with a shareholding of 50.4% as a result of the underwriting of BancABC's recently finished rights offer.
Resolution Health awarded Medical Insurance Provider of the Year 2012
ADC African Development Corporation GmbH & Co. KGaA ('ADC'), ISIN DE000A1E8NW9, a fast growing pan-African banking group focused on the frontier markets of sub-Saharan Africa is pleased to announce that its portfolio company, Resolution Health East Africa Limited (RHEAL), won two awards at the Kenyan annual insurance awards ceremony in Nairobi. RHEAL was the winner of the Medical Insurance Provider of the Year award and the runner up for the

All 5 Releases