UBA Grows Pre-tax Profit To N603.483bn In Q3

United Bank for Africa (UBA) Plc, has reported profit before tax of N603.483 billion in its unaudited results for the third quarter (Q3) ended September 30, 2024.

The Bank financial results for Q3 showed strong and impressive growth across all its key indicators.

As in the first three quarters of the current fiscal year, the Bank’s gross earnings grew by 83.2 per cent to N2.398 trillion up from N1.308 trillion recorded in September last year. Net Interest income which stood at N443.0 billion at the end of the third quarter in 2023, rose by 149 per cent to N1.103 trillion in the period under consideration.

The Bank profit before tax grew by 20.2 per cent to N603.48 billion compared to N502.09 billion 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.

UBA continues to maintain a very 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, while total deposits rose to N26.50 trillion, representing a 52.7 per cent rise, from N17.355 trillion at the end of the last financial year.

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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.

Speaking on the result, group managing director/CEO, UBA, Oliver Alawuba stated 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 N1.10 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 stated.

According to the GMD, the Bank’s performance has been underpinned by consistent strong growth on all core and sustainable banking income lines.

Executive director, Finance & Risk, UBA, Ugo Nwaghodoh said, “I am delighted at the milestone reached in driving operational efficiency, reflected in cost-to-income ratio normalising around the 50 per cent range. Shareholders’ funds recorded a 77 per cent growth from N2 trillion at full year 2023 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 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 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.