UBA grows Q3 pre-tax profit by 20% to N603bn

United Bank for Africa has released its unaudited results for the third quarter (Q3) ended September 30, 2024, where it recorded strong and impressive growth across all its key indicators.

As in the first two quarters of the current fiscal year, the bank’s gross earnings grew significantly by 83.2 percent to N2.398 trillion up from N1.308 trillion recorded in September last year, while its net Interest income which stood at N443billion at the end of the third quarter in 2023, rose impressively by 149 percent to N1.103 trillion in the period under consideration.

Africa’s global 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 N502.09billion recorded at the end of the third quarter of 2023, while profit after tax also rose remarkably by 16.9 per cent 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 54percent increase over the N20.653 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 percent rise, up from N17.355 trillion at the end of the last financial year.

UBA 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.

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Oliver Alawuba, Group Managing Director/CEO, UBA 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 YoY to N1.10trillion 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.

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 optimising operational efficiency.”

Ugo Nwaghodoh, Executive Director, Finance & Risk, UBA said, “I am delighted at the milestone reached in driving operational efficiency, reflected in the 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, “We remain on track with various strategies to optimise 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 optimise 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.