Diversified business model, others lift UBA’s Q3 profit by 12.3 per cent
United Bank for Africa (UBA) Plc has posted a profit before tax (PBT) of N138.5 billion in its third quarter (Q3) operations against N123.4 billion recorded in the corresponding period in 2021.
Specifically, the bank’s unaudited result for the period ended September 31, 2022 showed 12.3 per cent rise in PBT from N123.4 billion to N138.5 billion while gross earnings also rose to N608 billion, up from N493 billion achieved in 2021.
Its profit after tax also increased by 10.9 per cent to N116 billion from N104.6 billion recorded in 2021, thus sustaining its annualised return on average equity for the period at 19.2 per cent.
The bank linked the improved performance to its diversification model and technology-led initiatives targeted at improving customer experience over the past few years.
Furthermore, the lender achieved a total assets of N9.3 trillion, representing a 9.1% rise when compared to N8.5 trillion recorded at the end of December 2021, even as customer deposit increased to N7.03 trillion, representing 10.4 per cent rise over N6.4 trillion posted at the end of the last financial year.
Its shareholders’ funds also stood at N809 billion higher than N805 billion recorded in December 2021.
Reacting on the performance, the Group Managing Director/Chief Executive Officer of the bank, Oliver Alawuba said the Group has continued to show notable operating resilience amid significant headwinds in the industry amidst heightened global risk environment, adding that the strong diversification model and unwavering focus on customer satisfaction continues to give the bank an edge over its peers in the industry.
He said: “We continue to reap the benefits of our diversification strategy and customer -1st philosophy, as well as build resilience in our operations across Africa and the rest of the world to support the mission of providing superior value to our stakeholders.
“This has translated into strong financial gains evident in growth in our customer deposits and net interest margin. In addition, we are strategically positioned to drive our market share in our operating countries, with the strong growth of our payments and transaction banking offerings,” Alawuba stated.
Executive Director, Finance & Risk Management, Ugo Nwaghodoh, said: “The Group’s profitability increased by 12.3 per cent to N138.5 billion, with underlying growth in our key income lines and moderation in our cost of funds.
“We remain very cautious in risk asset creation as we defensively position our asset portfolios to minimize the impact of the heightened credit risk. Consequently, our NPL ratio remains within acceptable threshold at 3.2 per cent,” he said.