UBA’s GMD/CEO, Oliver Alawuba
Q3 2024: UBA’s Net Interest Income Increased By 149%
. PBT Up By 20% To N603 Billion Too
The United Bank for Africa (UBA) Plc has announced its unaudited results for the third quarter ended September 30, 2024, recording a 149 per cent net interest income.
As in the first two quarters of the current fiscal year, the bank’s gross earnings grew significantly by 83.2 per cent to N2.398tn up from N1.308tn recorded in September last year, while its net Interest income which stood at N443.0bn at the end of the third quarter in 2023, rose by 149 per cent to N1.103tn in the period under consideration.
The bank’s financial report filed with the Nigerian Exchange Limited on Monday also indicated a 20.2 per cent increase in Profit before Tax (PBT) to close at N603.48bn, compared to N502.09bn recorded at the end of the third quarter of 2023.
Its profit after tax also rose by 16.9 per cent from N449.26bn recorded a year earlier to N525.31bn in the period under review.
As in the preceding two quarters this year, UBA said it continued to maintain a very strong balance sheet, with Total Assets rising to N31.801tn, representing a 54.0 per cent increase over the N20.653tn recorded at the end of December 2023.
This is 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 N26.50tn, representing a 52.7 per cent rise, up from N17.355tn at the end of the last financial year.
UBA shareholders’ funds remained at N3.585tn up from N2.030tn recorded in December 2023, reflecting a strong capacity for internal capital generation and growth.
Commenting on the result, UBA’s Group Managing Director/CEO, 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 per cent YoY to N1.10trillion 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 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 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 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 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 optimize 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 remained committed to sustainable growth in its core banking revenue lines and maintaining its strong compliance and risk management culture, even as the Group identified further opportunities to expand.