United Bank for Africa (UBA) Plc continued its positive growth trajectory on Monday with its half-year financials showing strong and impressive grolwth performances across all its key indicators.
The details contained in the bank’s unaudited financial results for the third quarter of the year ended September 30, 2024 showed its gross earnings grew significantly by 83.2 percent to N2.398 trillion, up from N1.308 trillion recorded in September last year.
As was the performance in the first two quarters of the current fiscal year, the bank’s net Interest income, which stood at N443.0 billion at the end of the third quarter in 2023, rose impressively by 149 per cent to N1.103 trillion in the period under consideration.
The bank’s financial report filed with the Nigerian Exchange Limited on Monday also indicated a 20.2 percent increase in Profit Before Tax (PBT) to close at N603.48 billion, compared to N502.09 billion recorded at the end of the third quarter of 2023, while profit after tax (PAT) also rose remarkably by 16.9 percent from N449.26 billion recorded a year earlier, to N525.31 billion 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 N31.801 trillion, representing a 54.0 percent increase over the N20.653 trillion recorded at the end of December 2023.
The bank said it 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 N17.355 trillion at the end of the last financial year.
Also, the bank said its 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.
The Group Managing Director/CEO of the bank, 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 N603.5 billion and our intermediation business continues to show strong growth with net interest income expanding by 149 percent year-on-year (YoY) to N1.10 trillion and NIM closing at 8.03 percent, which is 17.60 percent above the 2023 position, despite persisting macroeconomic headwinds, geopolitical tensions, insecurity, inflationary pressure and exchange rate volatilities across our markets,” Alawuba stated.
The GMD said the Bank’s performance was 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.”
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 percent range. Shareholders’ funds recorded a 77 percent 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 the remains on track with various strategies to optimize its cost of funds and operating expenses.
He said 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.
