United Bank for Africa recorded a surge in after-tax profit to N116 billion in the third quarter of 2022, up 10.9 percent from N104.6 billion in the same period of 2021.
The bank’s interest income surged 22 percent to N420.2 billion in September 2022, coming from N343.7 billion in September 2021.
According to CSL Research, UBA’s 9M unaudited numbers showed a moderate 22.3 percent year-on-year growth in interest income to N420.2 billion driven mainly by significant growth in interest income on loans and investment securities.
Interest income on loans and advances to banks grew 46.7 percent to N20.1 billion in September 2022 from N13.7 billion in September 2021.
Interest income on treasury bills increased to N74.1 billion, up 11 percent from N66.7 billion in the third quarter of last year.
Interest income on bonds rose to N90 billion in September 2022, up 41 percent from N63.7 billion in September 2021.
Interest expense increased by 20.3 percent to N137.7 billion, while N114.4 billion was recorded in the third quarter of last year.
“Interest Expense on the other hand was up 20.3 percent year on year but grew strongly in Q3 compared with Q2, up 45.7 percent quarter on quarter. The year-on-year growth was on the back of significant growth in interest expense on both customer deposits and deposits from banks. While customer deposits were up 15.5 percent year on year, interest expense on such deposits was up 26.4 percent year on year, pointing to an increase in funding costs,” analysts at CSL Research said in a note.
UBA incurred N99.2 billion as interest expense on deposits from customers, up 26.3 percent from N78.5 billion in the third quarter of 2021.
Interest expense on deposits from banks grew by a huge 155 percent to N17.1 billion in the third quarter of 2022 from N6.7 billion in the same period of 2021.
Read also: Kuda to expand banking service in UK to Nigeria’s in diaspora
Interest expense on borrowings by UBA bank dropped 28 percent to N20.5 percent in the third quarter of this year, from N28.7 billion in the third quarter of 2021.
Interest expense on lease liabilities climbed 73 percent to N805 billion in September 2022 from N465 billion in September 2021.
Fee and commission income increased to N138 billion, indicating a 24 percent increase from N111 billion in the third quarter of last year.
The bank recorded fee and commission expenses of N55.8 billion, a 29.7 percent increase from N43 billion in the reviewed period.
Electronic banking income amounted to N48 billion, a 14 percent increase from N42 billion in September 2021.
The bank incurred an expense of N45.7 billion on e-banking expenses, up 23 percent from N37.1 billion in the reviewed period.
Account maintenance fees from its customers surge to N9.6 billion, up 35 percent from N7.1 billion in the third quarter of last year.
Operating income surged to N414.4 billion in the third quarter of this year, 23.7 percent from N334.8 billion in the third quarter of 2021.
Trade transactions income amounted to N23.9 billion in the third quarter of 2022, up 77 percent from N13.5 billion in the same period of last year.
Net trading and foreign exchange income surged 40.6 percent to N38.4 billion from N27.3 billion in the period reviewed.
Employee benefit expenses surged to N80.7 billion in the third quarter of 2022, a 21.3 percent increase from N66.5 billion in the third quarter of 2021.
Earning per share stood at N3.27 from N2.94 in September 2021.
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
