United Bank for Africa Plc (UBA) has reported significant growth in its financial performance for the third quarter of 2024, as reflected in their unaudited results filed with the Nigerian Exchange Limited. The bank’s gross earnings surged by 83.2% year-on-year, reaching N2.39 trillion, compared to N1.31 trillion during the same period in 2023. This remarkable improvement indicates the bank’s robust growth trajectory and reflects its strategic initiatives aimed at enhancing customer satisfaction and operational efficiency through technological investments.
In terms of net interest income, UBA saw a remarkable increase of 149%, climbing to N1.10 trillion in Q3 2024 from N443 billion a year earlier. This boost has contributed significantly to the bank’s profitability, with profit before tax rising by 20.2% to N603.48 billion, while profit after tax increased by 16.9% to N525.31 billion. This positive trend in earnings showcases UBA’s strong intermediation business, which has proven resilient despite the various macroeconomic challenges the bank faces, including inflation, insecurity, and fluctuations in exchange rates.
Total assets for UBA also saw a considerable rise, reaching N31.80 trillion, a 54% increase compared to N20.65 trillion at the end of December 2023. In tandem with this asset growth, total deposits grew to N26.50 trillion, reflecting a 52.7% increase from the previous financial year. Such growth highlights the bank’s ability to attract and retain customer funds, reinforcing its standing within the competitive banking landscape of Nigeria.
Mr. Oliver Alawuba, UBA’s Group Managing Director and CEO, expressed his satisfaction with the bank’s sustained growth across its revenue streams, emphasizing the strategic advantage provided by the bank’s focus on technology. He noted that UBA’s net interest margin had reached 8.03%, representing a substantial growth of 17.6% from 2023. Alawuba credited this achievement to the bank’s consistent investments in technology and operational enhancements that have improved both customer experiences and business efficiency.
Supporting Alawuba’s sentiments, Ugo Nwaghodoh, the Executive Director of Finance and Risk, commented on UBA’s operational efficiency, which has seen the cost-to-income ratio stabilize around 50%. He highlighted the considerable growth in shareholders’ funds, which increased by 77% from N2 trillion at full-year 2023 to N3.59 trillion, underscoring the bank’s strong financial capacity for future expansions. Nwaghodoh reiterated UBA’s commitment to optimizing its cost of funds and managing operating expenses effectively, while also aligning with regulatory requirements in Nigeria and other jurisdictions.
Moving forward, UBA remains steadfast in its strategies for sustainable growth, focusing on core banking revenue lines, compliance, and risk management. With plans to strengthen its share capital in alignment with regulatory requirements, the bank aims to support its long-term aspirations while navigating the challenging economic landscape. The continuous efforts to enhance operational efficiency and customer service through technology are expected to drive further improvements in financial performance and shareholder value in the future.
