United Bank for Africa (UBA) Plc, Africa’s leading global bank, has reported strong financial results for the third quarter of 2024, showcasing impressive growth across its core revenue lines.
According to its unaudited financial statement for the period ending September 30, 2024, UBA’s net interest income soared by a remarkable 149% to N1.103 trillion, up from N443 billion recorded in the corresponding period of 2023.
The bank’s gross earnings also saw a significant 83.2% increase, rising to N2.398 trillion from N1.308 trillion in September 2023. This growth underscores UBA’s capacity to expand its earnings base despite challenging macroeconomic environments, including inflationary pressures, exchange rate volatility, and global geopolitical tensions.
In terms of profitability, UBA’s profit before tax (PBT) climbed by 20.2%, reaching N603.48 billion, compared to N502.09 billion in Q3 2023. Profit after tax also saw a robust 16.9% growth, settling at N525.31 billion, up from N449.26 billion a year ago.
Strong Balance Sheet and Impressive Deposits Growth:
UBA’s balance sheet remains solid, with total assets rising by 54% to N31.801 trillion, a considerable leap from N20.653 trillion at the close of 2023. Total deposits also increased significantly by 52.7%, standing at N26.50 trillion, up from N17.355 trillion recorded at the end of last year. The bank attributes this growth to its ongoing investments in technology-driven initiatives, designed to enhance customer experience and streamline operations.
Additionally, shareholders’ funds surged by 77%, rising to N3.585 trillion from N2.030 trillion in December 2023, further reinforcing UBA’s robust capital generation and long-term growth prospects.
Leadership Comments:
Commenting on the results, UBA’s Group Managing Director/CEO, Mr. Oliver Alawuba, expressed satisfaction with the bank’s sustained growth trajectory. “The UBA Group achieved a profit before tax of N603.5 billion, and our intermediation business continues to show strong growth, with net interest income expanding by 149% year-on-year to N1.10 trillion. Despite macroeconomic headwinds, we have maintained strong momentum in all revenue streams,” Alawuba said.
He also highlighted that the bank’s substantial investments in technology have been instrumental in driving operational efficiency and enhancing customer satisfaction. “Our commitment to technological innovation is yielding tangible results, positioning UBA as a leader in delivering cutting-edge financial solutions,” Alawuba added.
The Executive Director, Finance & Risk, Mr. Ugo Nwaghodoh, emphasized the bank’s focus on operational efficiency and cost management. “Our cost-to-income ratio has stabilized around 50%, reflecting improved efficiency. Shareholders’ funds have grown by 77%, which speaks to the bank’s capacity for sustained growth and expansion.”
Outlook:
Looking ahead, UBA’s management remains optimistic about sustaining its impressive performance for the remainder of 2024 and beyond. According to Nwaghodoh, the bank is “on track to optimize cost of funds and operating expenses while finalizing plans to shore up share capital in line with regulatory requirements.”
Nwaghodoh also reaffirmed UBA’s commitment to sustainable growth, particularly in its core banking operations, while adhering to strict compliance and risk management frameworks.
About UBA:
As a leading Pan-African financial institution, UBA serves more than 45 million customers across 1,000 business offices in 20 African countries. The bank’s global reach extends to major financial centers such as New York, London, Paris, and Dubai, where it connects people and businesses through retail, corporate, and innovative cross-border banking services.