… 263% Increase In Profit Before Tax
United Bank for Africa (UBA) Plc, one of Africa’s leading financial institutions, has released its unaudited financial results for the third quarter ended September 30, 2023, showcasing remarkable growth across key performance indicators.
In a trend that mirrors its outstanding performance in the previous two quarters of the fiscal year, UBA reported a significant 115.2% growth in gross earnings, surging from N608 billion in the same period last year to an impressive N1.309 trillion. Operating income also saw a remarkable rise, increasing by 146% from N414 billion in September 2022 to N1.018 trillion in 2023.
The bank’s financial report, filed with the Nigerian Exchange Limited, revealed an extraordinary 262% surge in Profit Before Tax (PBT) which stood at N502.01 billion, compared to N138.49 billion recorded in the third quarter of 2022. Additionally, profit after tax experienced substantial growth, increasing by 287.2% from N116 billion in the previous year to N449.29 billion. This phenomenal performance exceeded its annualized return on average equity for Q3 2023 at an impressive 131%, reaching 44.37%.
UBA continues to maintain a robust balance sheet, with Total Assets surging to N16.24 trillion, reflecting a 49.5% increase from the N10.86 trillion recorded at the end of December 2022. The bank’s technology-led initiatives, aimed at enhancing customer experience, have been pivotal in its success. Customer Deposits rose to N11.63 trillion, representing a substantial 48.6% increase from N7.8 trillion at the close of the previous financial year.
Furthermore, UBA’s shareholders’ funds have remained resilient, amounting to N1.778 trillion, up from N922.1 billion recorded at the end of December 2022, highlighting the bank’s robust capacity for internal capital generation and growth.
Mr. Oliver Alawuba, the Group Managing Director/CEO of UBA, attributed this significant improvement to FX harmonization, efficient balance sheet management, and service-focused strategies.
He expressed the bank’s commitment to providing value to shareholders and stakeholders.
Alawuba emphasized that the bank’s operations outside of Nigeria have successfully harnessed opportunities both within and beyond Sub-Saharan Africa.
Looking ahead, Alawuba outlined UBA’s strategy for the rest of the year, emphasizing the use of customer-centric strategies, speed to market, and innovation to expand market share. The bank also plans to deepen digital and transactional banking offerings while forming strategic alliances to seize emerging opportunities.
Ugo Nwaghodoh, UBA’s Executive Director, Finance & Risk, highlighted the bank’s strong momentum in the third quarter, noting the positive impact of higher asset yields, moderate funding costs, and balance sheet optimization.
He reiterated the bank’s commitment to delivering sustainable and improved performance across various business segments.
United Bank for Africa Plc, a Pan-African financial institution, serves over 25 million customers through 1,000 business offices and customer touchpoints in 20 African countries. With a global presence in New York, London, Paris, and Dubai, UBA is actively facilitating cross-border payments, trade finance, remittances, and a range of banking services, connecting people and businesses across the African continent.