. As pre-tax rise 20% to N603bn
By Stanley Onyeka, Lagos
Africa’s global bank, United Bank for Africa (UBA) Plc has announced an 83.2% jump in gross earnings to N2.398 trillion up from N1.308 trillion year-on-year in its unaudited results for the third quarter (Q3) ended September 30, 2024.
Riding on its recently released half-year (H1) financials, the bank also posted a 149% leap to N1.103 trillion in its net Interest income, against N443.0 billion recorded in Q3 2023.
This announcement is contained in UBA’s financial report filed with the Nigerian Exchange Limited (NGX) yesterday, where it recorded strong and impressive growth across all its key indicators.
Accordingly, the bank posted a 20.2% increase in Profit before Tax (PBT) to close at N603.48 billion compared to N502.09billion recorded, while profit after tax also rose remarkably by 16.9% from N449.26 billion recorded a year earlier to N525.31 billion year-on-year.
According to the filing, UBA said as in the preceding two quarters, it continued to maintain a very strong balance sheet, with Total Assets rising to N31.801 trillion, representing a 54.0% growth over the N20.653 trillion recorded as of December 2023.
Just as the bank benefitted largely from its technology-led initiatives targeted at improving customer experience over the past few years, its Total Deposits rose to N26.50 trillion, a 52.7% rise against the N17.355 trillion at the end of last financial year.
UBA shareholders’ funds remained very strong at N3.585 trillion up from N2.030 trillion recorded in December 2023 again reflecting a strong capacity for internal capital generation and growth.
Our substantial investments in technology are yielding tangible business value. This commitment is instrumental in delivering enhanced customer experiences and optimizing operational efficiency.
Sustainable growth
Commenting on the result, UBA’s Group Managing Director/CEO, Oliver Alawuba, was said to have expressed pleasure that the Group continues to record strong and sustainable growth in its various revenue streams, building on its strong performance earlier in the year.
He said: “The UBA Group achieved a profit before tax of N603.5 billion and our intermediation business continues to show strong growth with net interest income expanding by 149% YoY to N1.10trillion and NIM closing at 8.03%, which is 17.60% above the 2023 position, despite persisting macroeconomic headwinds, geopolitical tensions, insecurity, inflationary pressure and exchange rate volatilities across our markets.”
According to the GMD, the Bank’s performance has been underpinned by consistent strong growth on all core and sustainable banking income lines.
“Our substantial investments in technology are yielding tangible business value. This commitment is instrumental in delivering enhanced customer experiences and optimizing operational efficiency,” he added
The Bank’s Executive Director, Finance & Risk, Ugo Nwaghodoh, said: “I am delighted at the milestone reached in driving operational efficiency, reflected in cost-to-income ratio normalizing around the 50% range. Shareholders’ funds recorded a 77% growth from N2 trillion at FYE2023 to N3.59 trillion demonstrating the Group’s significant capacity for future growth.
On plans to consolidate its performance for the rest of the 2024 financial year and beyond, Nwaghodoh said: “We remain on track with various strategies to optimize our cost of funds and operating expenses.
“Furthermore, the Group has finalized plans to shore up its share capital to support its medium to long term aspirations, whilst aligning with the recent regulatory requirement in Nigeria and other jurisdictions.”
He explained that UBA remains committed to sustainable growth in its core banking revenue lines and maintaining its strong compliance and risk management culture, even as the Group identifies further opportunities to expand.
UBA offers banking services to more than 45 million customers, across 1,000 business offices and customer touch points in 20 African countries, and with presence in New York, London, Paris and Dubai.
