UBA grows net profit by 165% to N142.5bn

United Bank for Africa Plc (UBA) has posted a net profit of N142.5 billion for the first quarter ended March 31, 2024.

This represented a 165 percent increase from the N53.5 billion posted in the corresponding quarter of 2023.

In a statement made available to newsmen on Tuesday in Lagos,the group said its profit before tax (PBT) also rose significantly by 155 percent from N61.7 billion posted in the first quarter of 2023 to N156.34 billion in the quarter under review.

UBA indicated that its gross earnings advanced by 110 percent, from N271.1 billion in the in the same period of 2023 to N570.2 billion as of March 31.

The group said its interest income grew by 130 percent, to N440.7 billion, while its operating income increased by 115 percent, from N175.7 billion posted in the first quarter of 2023 to N378.59 billion recorded in the first quarter of the year.

Commenting on the results, UBA’s Group Managing Director, Mr. Oliver Alawuba, said the group delivered a strong first quarter performance.

Alawuba stated that the performance was built on the solid momentum of the 2023 financial year 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 first quarter 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 percent, 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 percent.

“The group’s balance sheet grew steadily, with total assets increasing by 23 percent to N25.4 trillion.

“Customer deposits closed at N18.4 trillion, recording a 23 percent increase year-on-year, largely attributed to growth in current accounts and savings accounts.”

According to him, the group’s unwavering commitment to sound governance, robust risk management, and financial strength position it for continued growth.

Alawuba noted that UBA would continue to contribute meaningfully to inclusive economic development across our network.

Also speaking on the performance, Executive Director, Finance and Risk, UBA, Mr. Ugo Nwaghodoh, said the group’s operating results for the quarter showed the actions taken to enhance its performance continued to deliver.

Nwaghodoh explained that the first quarter results highlighted the group's relentless customer focus and the strength of UBA’s geographic and product diversification, with good performance across all our regions.

He said, “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 expenses and operating expenses and expect to make steady progress as we move through the year towards our stated profitability targets,” Nwaghodoh stated.

UBA is a pan-African financial institution offering banking services to more than 25 million customers across over 1,000 business offices and customer touch points in 20 African countries and across four continents.