Africa’s global bank, the United Bank for Africa (UBA) Plc has announced strong growth across all key financial indicators in its unaudited Q3 2024 results, continuing the impressive performance it posted in the first half of the year. Gross earnings for the third quarter ended September 30, 2024, rose significantly by 83.2% to N2.398 trillion, up from N1.308 trillion in the corresponding period last year.
According to the financial report filed with the Nigerian Exchange Limited on Monday, the bank’s net interest income surged by an impressive 149%, reaching N1.103 trillion, compared to N443 billion in Q3 2023. Profit Before Tax (PBT) also increased by 20.2%, closing at N603.48 billion, while profit after tax rose by 16.9% to N525.31 billion, compared to N449.26 billion in the same period last year.
UBA’s balance sheet remained robust, with total assets growing by 54% to N31.801 trillion, up from N20.653 trillion in December 2023. The bank’s deposits also saw a significant rise of 52.7%, reaching N26.50 trillion, compared to N17.355 trillion at the end of 2023, attributed largely to the bank’s technology-driven customer service initiatives.
UBA’s shareholders’ funds experienced a substantial growth of 77%, climbing to N3.585 trillion from N2.030 trillion at the close of 2023, reflecting the bank’s strong internal capital generation capabilities.
Commenting on the results, UBA Group Managing Director/CEO, Oliver Alawuba, expressed satisfaction with the bank’s sustained growth. “Despite the macroeconomic headwinds, geopolitical tensions, inflationary pressures, and exchange rate volatilities, our intermediation business has shown strong growth. Our net interest income expanded by 149% year-on-year, and we achieved a profit before tax of N603.5 billion,” Alawuba said.
Alawuba attributed the bank’s strong performance to its investments in technology, which have delivered tangible business value and enhanced customer experience. He reiterated UBA’s commitment to operational efficiency and sustaining growth in its core banking revenue streams.
Executive Director of Finance & Risk, Ugo Nwaghodoh, highlighted UBA’s operational efficiency, with the cost-to-income ratio normalizing around the 50% range. He noted that the bank’s shareholders’ funds grew by 77% year-on-year, demonstrating its capacity for future growth. He also disclosed plans to shore up the bank’s share capital in line with regulatory requirements in Nigeria and other jurisdictions.
Looking ahead, Nwaghodoh assured that UBA is on track with strategies to optimize its cost of funds and operating expenses while pursuing sustainable growth in core revenue lines.
UBA Plc is a leading Pan-African financial institution with operations across 20 African countries and presence in New York, London, Paris, and Dubai, serving over 45 million customers globally. The bank offers a wide range of services including retail, corporate, and commercial banking, cross-border payments, trade finance, and remittances.