United Bank for Africa (UBA) Plc has announced its unaudited results for the third quarter ended September 30, 2024, showing the bank’s gross earnings growing significantly by 83.2 per cent to N2.398 trillion up from N1.308 trillion recorded in September last year.
The net interest income which stood at N443.0 billion at the end of the third quarter in 2023 by 149 per cent to N1.103 trillion in the period under consideration.
The figures are contained in the bank’s financial report filed with the Nigerian Exchange Limited.
The report also showed a 20.2 per cent increase in profit before tax (PBT) closing at N603.48 billion compared to N502.09 billion recorded at the end of the third quarter of 2023.
Profit after tax (PAT) 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 first two quarters of 2024, the bank maintained a strong balance sheet, with total assets rising to N31.801 trillion, representing a 54.0 per cent increase over the N20.653 trillion recorded at the end of December 2023.
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 per cent rise, up from N17.355 trillion at the end of the last financial year.
UBA’s shareholders’ funds remained strong at N3.585 trillion, up from N2.030 trillion recorded in December 2023.
Commenting on the result, UBA’s GMD/CEO, Mr. Oliver Alawuba, was upbeat that the Group continued 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 per cent YoY to N1.10 trillion and NIM 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 said.
He added that the bank’s performance has been 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 optimising operational efficiency,” he added.
Similarly, UBA’s executive director, finance and risk, Mr Ugo Nwaghodoh, said: “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 N2 trillion at FYE2023 to N3.59 trillion demonstrating the Group’s significant capacity for future growth.”
On the 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 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.”