UBA’s Profit After Tax Rises By 165% In Q1

United Bank for Africa Plc (UBA) has released its financial results for the first quarter ended March 31st, 2024, posting 165 per cent improvement in its  profit after tax compared to what it posted in the comparable period of 2023.

The Group’s results, which were released to the Nigerian Exchange Limited (NGX) saw  year-on-year increases with its Gross Earnings rising by 110 per cent from N271.1billion to N570.2 billion, whilst Interest Income grew by 130 per cent, to N440.7 billion. Similarly, Operating Income increased by 115 per cent, from N175.7 billion in 2023, to N378.59 billion.

Building on its full year 2023 performance, UBA’s  Profit Before Tax rose significantly by 155 per cent from N61.7 billion in Q1 2023, to N156.34 billion in Q1 2024; while Profit After Tax jumped from N53.5 billion to N142.5 billion, representing an impressive rise of 165 per cent year-on-year.

Commenting on the results, UBA’s Group Managing Director, Oliver Alawuba, said the Group delivered strong first quarter performance, building on the solid momentum of 2023, as well as the ongoing execution of its long-held strategy of customer focus, geographic diversification and effective risk management and governance.

He said, “Our record Q1 profit before tax was delivered with triple digit gross earnings growth, supported by very strong interest and non-interest income. Fees and Commissions rose by 118 per cent year-on-year on the back of improved efficiencies and continued digital adoption.  This has helped drive improvement in efficiency and customer satisfaction, with the Group’s cost-to-income ratio held at 57.8 per cent.

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“The Group’s balance sheet grew steadily with Total Assets increasing by 23 per cent to N25.4 trillion. Customer deposits closed at N18.4 trillion, recording a 23 per cent increase year-on-year, largely attributed to growth in current accounts and savings accounts.

“Our unwavering commitment to sound governance, robust risk management, and financial strength positions us for continued growth, while we contribute meaningfully to inclusive economic development across our network.”

Also speaking on the performance, UBA’s Executive Director, Finance and Risk, Ugo Nwaghodoh, said the Group’s operating results for the quarter showed the actions taken to enhance the Group’s performance continued to deliver.

He said, “Our first quarter results highlight our relentless customer focus and the strength of UBA’s geographic and product diversification, with good performance across all our regions.  We continue to differentiate ourselves across all key financial metrics, with a keen focus on high-quality risk adjusted revenues and cost discipline, while maintaining very sound asset quality.

“We remain committed to reducing both interest expense and operating expenses and expect to make steady progress as we move through the year toward our stated profitability targets,” Nwaghodoh stated.