UBA Records 47.5% Growth in Gross Earnings, Profit Hits N61.4bn

The United Bank for Africa (UBA) Plc has released its unaudited results for the first quarter ended March 31st, 2023, recording growth across all its major income lines.
The bank’s result which was released to the Nigerian Exchange Limited (NGX), showed that gross earnings rose by 47.5 per cent from N183.9 billion to N271.2 billion; while interest income which stood at N125.9 billion as at March 2022, grew by 53.4 per cent to N191.9 billion in the quarter under consideration.
The results further revealed that operating income rose by 39.6 per cent to N175.7 billion, as against N125.9 billion recorded in the corresponding quarter of 2022.

Following the performance recorded in its just released 2022-year-end financials, UBA again saw its profit before tax (PBT) rising significantly by 38.2 per cent to N61.4 billion in Q1 2023, up from N44.5 billion recorded in the first quarter of 2022.
In the same vein, its profit after tax (PAT) jumped from N41.5 billion to N53.6 billion, representing an impressive 29.1 per cent increase.
Commenting on the result, UBA’s Group Managing Director/ Chief Executive Officer, Mr. Oliver Alawuba, explained that despite the high inflationary, and challenging global environment, UBA was able to leverage the uptick in interest rates and improved digital offerings, in growing funded and non-funded income, adding that he is particularly excited at the growth in PBT, which has helped to drive increased returns to shareholders, with a 22.6 per cent Return on Average Equity (ROAE) compared to 19.7 per cent recorded in December 2022.

“We have continued to record improved gains in our customer acquisition and retention strategies across our countries of presence, evident in the 10.5 per cent growth in customer deposits to N8.6 trillion from N7.8 trillion at the end of full-year 2022.
“This has enabled the Group drive increased loan growth and interest income, with loans to customers at N3.6 trillion, representing a year-to-date (YTD) increase of five per cent. For 2023, we remain committed to improving the Group’s performance as we strategically position our entities to take advantage of emerging developments within their jurisdictions and across the globe. We will continue to deliver excellent rewards to our stakeholders,” Alawuba said.

Also speaking on the performance, UBA’s Executive Director, Finance and Risk, Ugo Nwaghodoh, said the performance demonstrated the group’s resilience and commitment towards delivering value and enhancing the confidence of its customers, stakeholders and the wider public notwithstanding the competitive landscape and current global trend in the industry.
“The impressive performance of UBA Group in first quarter 2023 is hinged on its continuous improvement and growth in gross earnings and balance sheet size as gross earnings grew by 47.5 per cent year-on-year to N271.2 billion and total assets up by 4.6 per cent to N11.4 trillion from N10.9 trillion as at December 2022, ” Nwaghodoh stated.

Continuing, he said, “The growth in gross earnings is on the strength of increase in both interest income and non-interest income while growth in total asset is attributable to increased deposits due to aggressive deposit mobilisation drive that resulted in a 10.5 per cent growth in customer deposit in the first quarter.”