United Bank for Africa (UBA) Plc, has announced its unaudited results for the third quarter that ended September 30, 2024, where it recorded strong and impressive growth across all its key indicators.
As in the first three quarters of the current fiscal year, the bank’s gross earnings grew significantly by 83.2 per cent to N2.398trn up from N1.308trn recorded in September last year, while its net Interest income which stood at N443.0bn the end of the third quarter in 2023, rose impressively by 149 per cent to N1.103trn in the period under consideration.
The bank’s financial report filed with the Nigerian Exchange Limited on Monday also indicated a 20.2 per cent increase in Profit before Tax (PBT) to close at N603.48bn compared to N502.09bn recorded at the end of the third quarter of 2023, while profit after tax also rose remarkably by 16.9 per cent from N449.26bn recorded a year earlier to N525.31bn in the period under review.
As in the preceding two quarters this year, UBA continues to maintain a very strong balance sheet, with Total Assets rising to N31.801trn, representing a 54.0 per cent increase over the N20.653trn recorded at the end of December 2023, just as the bank benefitted largely from its technology-led initiatives targeted at improving customer experience over the past few years, with Total Deposits rising to N26.50trn, representing a 52.7 per cent rise, up from N17.355trn at the end of the last financial year.
UBA shareholders’ funds remained very strong at N3.585trn up from N2.030trn recorded in December 2023, again reflecting a strong capacity for internal capital generation and growth.
Commenting on the result, UBA’s Group Managing Director/CEO, Mr Oliver Alawuba, 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.
“The UBA Group achieved a profit before tax of N603.5bn and our intermediation business continues to show strong growth with net interest income expanding by 149 per cent YoY to N1.10trn and NIM closing at 8.03 per cent, which is 17.60 per cent above the 2023 position, despite persisting macroeconomic headwinds, geopolitical tensions, insecurity, inflationary pressure and exchange rate volatilities across our markets,” Alawuba stated.
According to the GMD, the Bank’s performance has been underpinned by consistently strong growth on all core and sustainable banking income lines, as he added “Our substantial investments in technology are yielding tangible business value. This commitment is instrumental in delivering enhanced customer experiences and optimizing operational efficiency.”
The Bank’s Executive Director, Finance & Risk, Ugo Nwaghodoh, said, “I am delighted at the milestone reached in driving operational efficiency, reflected in the cost-to-income ratio normalizing around the 50 per cent range. Shareholders’ funds recorded a 77 per cent growth from N2trn at FYE2023 to N3.59trn 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.”
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.