UBA Records Impressive Q1 Pretax Earnings of N156bn, Achieving 165% YoY Growth

Nume Ekeghe

United Bank for Africa Plc (UBA), Africa’s Global Bank, has unveiled its first-quarter financial results for the period ending March 31st, 2024, with its profit before tax earning growing 165 per cent year-on-year to N156 billion.

Released to the Nigerian Exchange Limited (NGX) recently,  the Group’s results showcase exceptional year-on-year increases.

Gross Earnings surged by 110 per cent , soaring from N271.1 billion to N570.2 billion, while Interest Income witnessed a substantial growth of 130 per cent to N440.7 billion. Operating Income also experienced a significant increase of 115 per cent, from N175.7 billion in 2023 to N378.59 billion.

Further consolidating the record performance delivered in the Group’s 2023 Full Year Audited Financials, UBA again saw Profit Before Tax rising 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.”

“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.