UBA Records 115% Gross Earnings Growth in Q3 2023, Profit Hits N502.1bn
Kayode Tokede
Consolidating on its recently released second-quarter performance, the United Bank for Africa (UBA) Plc, yesterday, announced its unaudited financial results for the third quarter ended September 30, 2023, recording impressive growth across all key performance metrics.
Replicating the performance achieved in the first two quarters of the current fiscal year, the bank’s gross earnings grew by 115.2 per cent to N1.309 trillion, up from N608 billion recorded last year, while operating income rose by 146 per cent from N414 billion in September 2022; to N1.018 trillion in the year under consideration.
The bank’s financial report filed on the Nigerian Exchange Limited, indicated a 262 per cent rise in profit before tax (PBT) to close at N502.01 billion, compared to N138.49 billion recorded at the end of the third quarter of 2022, while profit after tax also rose impressively by 287.2 per cent, from N116 billion recorded a year earlier to N449.29 billion, surpassing its annualised return on average equity for Q3 2023 at 131 per cent to 44.37 per cent.
As in the preceding quarters, UBA continued to maintain a very strong balance sheet, with total assets rising to N16.24 trillion, representing a 49.5 per cent increase over the N10.86 trillion recorded at the end of December 2022, just as the bank benefitted largely from its technology-led initiatives targeted at improving customer experience over the past few years, with customer deposits rising to N11.63 trillion, representing a 48.6 per cent rise, up from N7.8 trillion at the end of the last financial year.
The results showed that UBA shareholders’ funds remained very strong at N1.778 trillion up from N922.1 billion recorded in December 2022 again reflecting a strong capacity for internal capital generation and growth.
Commenting on the result, UBA’s Group Managing Director/CEO, Mr. Oliver Alawuba, remarked that the Group has once again shown sustainable and remarkable improvement in key performance metrics over the period, reflecting its commitment to delivering value to shareholders and various stakeholders.
He said, “This significant improvement is attributed to the impact of FX harmonisation, efficient balance sheet management, and our service-focused strategies.
“Our banking operations outside of Nigeria have continued to capture the broader business opportunities inherent across, and beyond Sub-Saharan Africa.”
Speaking on plans and strategy to sustain and surpass the performance at the end of the year, the GMD explained that the bank would continue to leverage its customer-centric strategies, speed to market, and innovation to consolidate market share in its various jurisdictions, as he pledged the bank’s commitment towards expanding and deepening digital and other transactional banking offerings while building strategic alliances to take advantage of emerging opportunities in due time.
“Looking ahead, we are optimistic that the growth trajectory will be sustained in the final quarter of the year as we remain focused on consolidating the gains achieved so far in delivering enhanced returns to our shareholders.,” Alawuba pointed out.
The bank’s Executive Director, Finance & Risk, Ugo Nwaghodoh, said, “Our performance in the third quarter demonstrates the strong momentum of the Bank, as we deliver continuous improvements across our businesses and key performance metrics. This is reflective of the combined impact of higher asset yields, modest funding cost, and balance sheet optimisation.
Speaking on UBA’s strategy for an excellent performance by the end of the 2023 financial year, Nwaghodoh said, “Notwithstanding changes in the monetary and fiscal regime in some of our markets, we remain committed to driving sustainable and improved performance across our various business segments.”
