United Bank for Africa (UBA) Plc recorded impressive growths in earnings and profitability in the third quarter with gross earnings crossing the trillion naira mark to N1.31 trillion.
Key extracts of the interim report and accounts of UBA for the nine-month period ended September 30, this year, released yesterday at the Nigerian Exchange (NGX), showed that gross earnings rose by 115.2 per cent while pre and post tax profits grew by 262 per cent and 287.2 per cent.
Gross earnings grew to N1.309 trillion in third quarter 2023 as against N608 billion recorded in third quarter 2022. Operating income rose by 146 per cent from N414 billion in September 2022 to N1.018 trillion in 2023. Profit before tax leapt to N502.01 billion in third quarter 2023 compared with N138.49 billion recorded at the end of the third quarter of 2022. Profit after tax also rose impressively from N116 billion to N449.29 billion.
The balance sheet also improved significantly. Total assets rose to N16.24 trillion, representing a 49.5 per cent increase over N10.86 trillion recorded at the end of December 2022.
The bank benefitted largely from its technology-led initiatives targeted at improving customer experience over the past few years as customer deposits rose to N11.63 trillion, representing a 48.6 per cent increase on N7.8 trillion recorded at the end of the last financial year in December 2022.
Shareholders’ funds remained very strong at N1.778 trillion up from N922.1 billion recorded in December 2022, reflecting a strong capacity for internal capital generation and growth.
Group Managing Director, United Bank for Africa (UBA) Plc, Mr. Oliver Alawuba, said 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.
“This significant improvement is attributed to the impact of foreign exchange harmonisation, efficient balance sheet management, and our service-focused strategies,’’ he aded.
Our banking operations outside of Nigeria have continued to capture the broader business opportunities inherent across, and beyond Sub-Saharan Africa, ” Alawuba said..
Speaking on plans and strategy to sustain and surpass the performance at the end of the year, he explained that the bank will continue to leverage its customer-centric strategies, speed to market, and innovation to consolidate market share in its various jurisdictions.
Team to boost accounting standardsHe assured of 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,” Alawuba said.
Executive Director, Finance & Risk, United Bank for Africa (UBA), Ugo Nwaghodoh, said the performance in the third quarter demonstrates the strong momentum of the bank, as it delivers 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,” Nwaghodoh said.
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.”