By Ayomide Otitoju
United Bank for Africa Plc (UBA) reported a significant rise in gross earnings, reaching N2.39 trillion for the third quarter of 2024, an 83.2% increase from N1.31 trillion recorded during the same period in 2023.
This was revealed in the bank’s unaudited financial results filed with the Nigerian Exchange Limited for the quarter ending September 30, 2024.
UBA’s net interest income surged by 149% year-on-year, rising from N443 billion in Q3 2023 to N1.10 trillion by the end of Q3 2024. Profit before tax saw a 20.2% increase, reaching N603.48 billion, compared to N502.09 billion a year earlier. Similarly, profit after tax rose by 16.9% to N525.31 billion, up from N449.26 billion in the same period of 2023.
The bank’s total assets grew significantly, climbing to N31.80 trillion, a 54% increase from N20.65 trillion recorded at the end of December 2023. Total deposits also saw a sharp rise of 52.7%, reaching N26.50 trillion, up from N17.36 trillion at the end of the last financial year.
In a statement accompanying the results, UBA attributed its strong performance to its technology-driven initiatives aimed at enhancing customer experience over the years. Shareholders’ funds rose by 77%, reaching N3.59 trillion, up from N2.03 trillion in December 2023.
Commenting on the results, UBA’s Group Managing Director/CEO, Mr. Oliver Alawuba, expressed satisfaction with the bank’s continued strong growth across its revenue streams. “The UBA Group achieved a profit before tax of N603.5 billion, with our intermediation business showing robust growth. Net interest income expanded by 149% year-on-year to N1.10 trillion, and our net interest margin closed at 8.03%, 17.6% higher than the 2023 position, despite macroeconomic challenges,” Alawuba said.
He credited UBA’s performance to the bank’s ongoing investments in technology, which have enhanced customer experience and operational efficiency.
The bank’s Executive Director of Finance & Risk, Ugo Nwaghodoh, highlighted UBA’s operational efficiency, with its cost-to-income ratio stabilizing around 50%. “Shareholders’ funds grew by 77% to N3.59 trillion, demonstrating our capacity for future growth. We remain on track with strategies to optimize our cost of funds and operating expenses,” Nwaghodoh added.
He also noted that UBA had finalized plans to strengthen its share capital to support long-term growth ambitions, in line with recent regulatory requirements in Nigeria and other jurisdictions.
UBA remains focused on sustainable growth in its core banking revenue streams while maintaining a strong risk management culture.
