Emmanuel OchayiUBA Continues Growth Streak in Q3
The United Bank for Africa (UBA) has recorded a 149% rise in net interest income in its recently announced unaudited results for Q3 2024.
The bank reported gross earnings of N2.398 trillion, an 83.2% increase from N1.308 trillion in Q3 2023. Net interest income rose from N443 billion to N1.103 trillion during the same period.
Join our WhatsApp ChannelSteady Growth Across Key Metrics
UBA’s third-quarter financials highlight strong performance across multiple revenue streams. The bank’s profit before tax (PBT) grew by 20.2% to N603.48 billion, up from N502.09 billion in Q3 2023. Similarly, profit after tax increased by 16.9% to N525.31 billion.
“UBA’s strong balance sheet continues to reflect our commitment to sustainable growth,” said UBA Group Managing Director/CEO Oliver Alawuba. “Despite global economic challenges, we have grown our core revenue streams and maintained our commitment to delivering value to shareholders.”
Asset Growth and Deposits Surge
As part of its broader growth trajectory, UBA’s total assets surged by 54.0%, reaching N31.801 trillion, up from N20.653 trillion at the end of December 2023. UBA attributes this growth to its strategic focus on technology-led initiatives aimed at improving customer experience and operational efficiency. Total deposits rose by 52.7%, reaching N26.50 trillion, compared to N17.355 trillion at the close of last year.
“We’ve made substantial investments in technology over the years, and these investments are now yielding significant business value,” said Alawuba. “Our ability to deliver enhanced customer experiences has been crucial in driving deposit growth and overall financial performance.”
Commentary from UBA Executives
UBA’s Group Executive Director for Finance & Risk, Ugo Nwaghodoh, further elaborated on the bank’s performance, pointing to the steady improvement in operational efficiency. “Our cost-to-income ratio has normalized around 50%, reflecting our focus on driving efficiency. Shareholders’ funds have grown significantly by 77%, from N2 trillion at the end of 2023 to N3.585 trillion.”
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When asked about future plans, Nwaghodoh added, “We are well-positioned for sustained growth. UBA will continue to optimize its cost of funds and operating expenses as we prepare to align with new regulatory requirements.”
Looking Ahead for UBA
As UBA gears up for the remainder of 2024, its leadership team is focused on maintaining momentum. The bank has outlined various strategies to optimize performance in the medium to long term, including plans to shore up share capital and align with evolving regulations in Nigeria and other markets.
“We remain on track to achieve our goals for the financial year,” said Nwaghodoh. “Our consistent focus on sustainable banking practices, coupled with a strong risk management framework, puts us in a solid position for continued expansion.”
The bank’s leadership remains optimistic about UBA’s future growth prospects, particularly in light of its strong Q3 performance. Alawuba concluded, “UBA’s robust financial performance is a testament to our strategic vision and operational execution. We will continue to leverage our strengths to ensure long-term success.”
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
