The gross earnings of United Bank for Africa Plc appreciated by 83.2 per cent year-on-year to N2.39tn at the end of the third quarter from N1.31tn in the same period of 2023.
This was disclosed in its unaudited results for the third quarter ended September 30, 2024, filed with the Nigerian Exchange Limited on Monday.
UBA’s net interest income, which stood at N443bn at the end of the third quarter in 2023, rose by 149 per cent to N1.10tn in Q3 2024.
Profit before tax went up by 20.2 per cent to N603.48bn from N502.09bn in Q3 2023, while profit after tax also rose by 16.9 per cent to N525.31bn from N449.26bn recorded a year earlier.
The lender’s total assets rose to N31.80tn, representing a 54.0 per cent increase over the N20.65tn recorded at the end of December 2023.
In a statement accompanying the results, the bank said that it had benefitted from its technology-led initiatives targeted at improving customer experience over the past few years.
Total deposits rose to N26.50tn, representing a 52.7 per cent rise, up from N17.355tn at the end of the last financial year.
UBA shareholders’ funds stood at N3.59tn up from N2.03tn recorded in December 2023.
Commenting on the result, UBA’s Group Managing Director/Chief Executive Officer, Mr Oliver Alawuba, expressed pleasure that the group continued to record strong and sustainable growth in its various revenue streams.
“The UBA Group achieved a profit before tax of N603.5bn and our intermediation business continues to show strong growth with net interest income expanding by 149 per cent YoY to N1.10tn and net interest margin closing at 8.03 per cent, which is 17.60 per cent 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.
“Our substantial investments in technology are yielding tangible business value. This commitment is instrumental in delivering enhanced customer experiences and optimising operational efficiency,” he added.
The bank’s Executive Director, Finance & Risk, Ugo Nwaghodoh, added, “I am delighted at the milestone reached in driving operational efficiency, reflected in the cost-to-income ratio normalising around the 50 per cent range. Shareholders’ funds recorded a 77 per cent growth from N2tn at FYE2023 to N3.59tn demonstrating the group’s significant capacity for future growth.
“We remain on track with various strategies to optimise our cost of funds and operating expenses. Furthermore, the group has finalised 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.”
According to Nwaghodoh, the group remain on track with various strategies to optimise its cost of funds and operating expenses.
“Furthermore, the group has finalised 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 remained committed to sustainable growth in its core banking revenue lines and maintaining its strong compliance and risk management culture.