United Bank for Africa (UBA) has posted a Profit Before Tax (PBT) of N603.48 billion in its third quarter operation, against N502.09 billion achieved in the corresponding period in 2023.
Precisely, the bank’s unaudited result for the period ended September 30, 2024, showed a 20.2 per cent rise in PBT to N603.48 billion from N502.09 billion recorded in 2023 while profit after tax also rose from N449.26 billion to N525.31 billion, representing a growth of 16.9 per cent.
In the first two quarters of the current financial year, the bank’s gross earnings grew by 83.2 per cent to N2.4 trillion up from N1.3 trillion recorded in September last year, while its net Interest income which stood at N443.0 billion at the end of the third quarter in 2023, rose by 149 per cent to N1.103 trillion in the period under consideration.
Its total assets rose to N31.801 trillion, representing a 54.0 per cent increase over the N20.7 trillion 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 N26.50 trillion, representing a 52.7 per cent rise, up from N17.4 trillion at the end of the last financial year.
UBA shareholders’ funds remained very strong at N3.6 trillion up from N2.030 trillion recorded in December 2023, reflecting a strong capacity for internal capital generation and growth.
Group Managing Director/CEO, Oliver Alawuba, expressed pleasure that the Group continued 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 N603.5 billion and our intermediation business continues to show strong growth with net interest income expanding by 149 per cent YoY to N1.10 trillion 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 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.”
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 N2 trillion at full year 2023 to N3.59 trillion demonstrating the Group’s significant capacity for future growth.”
To consolidate its performance for the rest of the 2024 financial year and beyond, Nwaghodoh said, “We remain on track with various strategies to optimise our cost of funds and operating expenses. Furthermore, the group has finalised 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.”
