United Bank for Africa (UBA) Plc, has announced gross earnings of N608 billion, up from N493 billion, and a 27.3 percent growth in operating income to N414.1 billion at the end of the third quarter in 2022, up from N334.8 billion achieved a year earlier.
The third quarter result is remarkable, replicating the commendable performance it achieved in the first two quarters of the current fiscal year.
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In its financial report filed with the Nigerian Stock Exchange (NSE), UBA reported a 12.3 percent rise in Profit Before Tax to close at N138.5 billion compared to N123.4 billion recorded at the end of the third quarter of 2021, while profit after tax also rose significantly by 10.9 percent to N116 billion up from N104.6 billion recorded a year earlier, thus sustaining its annualised return on average equity for Q3 2022 at 19.2 percent.
As always, UBA continues to maintain a very strong balance sheet, with total assets rising to N9.3 trillion, representing a 9.1 percent increase over the N8.5 trillion recorded at the end of December 2021, just as the bank benefitted largely from its technology-led initiatives targeted at improving customer experience over the past few years, with Customer Deposits rising to N7.03 trillion, representing a 10.4 percent rise, up from N6.4 trillion at the end of the last financial year.
UBA shareholders’ funds remained very strong at N809 billion up from N805 billion recorded in December 2021 again reflecting a strong capacity for internal capital generation and growth.
Commenting on the result, UBA’s Group Managing Director, Oliver Alawuba, remarked that the Group continues to show notable operating resilience amid significant headwinds in its presence markets amidst a heightened global risk environment, adding that its strong diversification model and unwavering focus on customer satisfaction continues to give the bank an edge over its peers in the industry.
He said, “We continue to reap the benefits of our diversification strategy and Customer -1st philosophy and build resilience in our operations across Africa and the Rest of the World to support the mission of providing superior value to our stakeholders.
“This has translated into strong financial gains evident in the growth in our customer deposits and Net interest margin. In addition, we are strategically positioned to drive our market share in our operating countries, with the strong growth of our payments and transaction banking offerings,” Alawuba stated.
Executive Director, of Finance & Risk Management, Ugo Nwaghodoh, said, “The Group’s profitability increased by 12.3 percent to N138.5 billion, with underlying growth in our key income lines and moderation in our cost of funds.
“We remain very cautious in risk asset creation as we defensively position our asset portfolios to minimize the impact of the heightened credit risk. Consequently, our NPL ratio remains within the acceptable threshold at 3.2 percent.
United Bank for Africa Plc is a leading Pan-African financial institution, offering banking services to more than twenty-five (25) million customers, across 1,000 business offices and customer touch points in 20 African countries. With a presence in New York, London, Paris, and Dubai, UBA is connecting people and businesses across Africa through retail, commercial and corporate banking, innovative cross-border payments and remittances, trade finance, and ancillary banking services
