United Bank for Africa (UBA) Plc reported a profit after taxes of N525.31 billion for the third quarter that concluded on September 30. In its unaudited financial report submitted to the Nigerian Exchange Ltd. (NGX) in Lagos on Monday, the bank made this revelation. From N449.26 billion reported in 2023, this is a 16.9% growth.
When compared to the N502.09 billion achieved during the same time in 2023, its profit before tax also increased by 20.2% to conclude at N603.48 billion. The bank made N2.398 trillion in gross earnings for the quarter, up 83.2% from N1.308 trillion during the same time in 2023.
Additionally, its third-quarter net interest income was N1.103 trillion, a 149% increase over the N443.0 billion reported at the end of the third quarter of 2023. According to Mr. Oliver Alawuba, Group Managing Director of UBA, the bank maintained a robust balance sheet over the reviewed period, with total assets increasing to N31.801 trillion.
The amount was a 54.0% rise over the N20.653 trillion recorded at the end of December 2023, Alawuba continued. He pointed out that the bank’s total deposits increased to N26.50 trillion during the previous three years, mostly due to its technology-led efforts aimed at enhancing the client experience.
He claimed that this represented a 52.7% rise over the N17.355 trillion at the end of the previous fiscal year. Alawuba added that because of UBA’s excellent internal capital generation and growth capabilities, the company’s shareholders’ funds increased from N2.030 trillion in December 2023 to N3.585 trillion. Building on its impressive performance earlier in the year, the firm continues to generate robust and sustained growth in its different revenue sources, according to the GMD.
He asserts that steady, robust growth across all core and sustainable banking revenue streams has supported the bank’s performance. The UBA group made N603.5 billion in profit before taxes, and our intermediation business is still growing well, with net interest income rising by 149% year over year to N1.10 trillion.
“Despite ongoing macroeconomic challenges, geopolitical difficulties, instability, inflationary pressure, and exchange rate volatility across our markets, NIM finished at 8.03 percent, which is 17.60 percent above the 2023 position.
“We are seeing real commercial value from our large expenditures in technology. Delivering improved client experiences and maximising operational efficiency are made possible by this dedication,” he stated. Mr. Ugo Nwaghodoh, the bank’s Executive Director of Finance and Risk, commented that he was thrilled by the achievement in increasing operational efficiency. According to Nwaghodoh, this was demonstrated by the cost-to-income ratio normalising in the range of 50%.
According to him, the growth shown in the shareholders’ funds showed the group’s considerable potential for future expansion. “We remain on track with various strategies to optimise our cost of funds and operating expenses,” Nwaghodoh said, referring to efforts to consolidate the bank’s performance for the remainder of the 2024 fiscal year and beyond.
“In accordance with the most recent regulatory requirements in Nigeria and other jurisdictions, the group has finalised plans to shore up its share capital to support its medium- to long-term aspirations.”
Even while the business looks for new growth prospects, UBA is nonetheless dedicated to sustaining its excellent compliance and risk management culture and achieving sustainable growth in its core banking income lines.
With 1,000 corporate offices and customer service locations throughout 20 African nations, UBA is a Pan-African financial organisation that provides banking services to over 45 million clients.
