UBA PROFIT SOARS 165% ON GROSS EARNINGS SURGE
United Bank for Africa (UBA), Africa’s Global Bank, delivered a remarkable first quarter in 2024, building upon its success in 2023. This performance reflects the continued execution of their strategic focus on customer satisfaction, geographical expansion, and robust risk management practices.
Key Highlights:
- Profit Soars: UBA achieved a significant year-over-year (YoY) increase of 165% in Profit After Tax, reaching N142.5 billion compared to N53.5 billion in Q1 2023. Profit Before Tax also saw a substantial rise of 155%, reaching N156.34 billion from N61.7 billion in the same period last year.
- Surge in Earnings: Gross Earnings experienced a phenomenal 110% YoY growth, reaching N570.2 billion from N271.1 billion. Interest Income followed suit with a 130% increase to N440.7 billion. Operating Income also witnessed a notable rise of 115%, reaching N378.59 billion compared to N175.7 billion in Q1 2023.
- Customer Focus Pays Off: UBA attributes this exceptional performance to their unwavering commitment to customer focus. Fees and Commissions rose by 118% YoY due to improved operational efficiency and continuous digital adoption, leading to enhanced customer satisfaction. The bank’s cost-to-income ratio remained steady at 57.8%, indicating efficient operations.
- Balance Sheet Strength: UBA’s balance sheet grew steadily, with Total Assets increasing by 23% to N25.4 trillion. Customer deposits mirrored this growth, reaching N18.4 trillion, reflecting a 23% YoY increase primarily driven by a rise in current and savings accounts.
- Financial Strength and Governance: UBA’s commitment to sound governance, robust risk management practices, and financial strength positions them for continued growth and meaningful contribution to economic development across their network.
Management Commentary:
- UBA Group Managing Director, Oliver Alawuba: Emphasized the strong Q1 performance, driven by the bank’s long-held strategy and continued momentum from 2023. He highlighted the impressive growth in gross earnings supported by strong interest and non-interest income.
- UBA Executive Director, Finance and Risk, Ugo Nwaghodoh: Pointed to the operating results as evidence of successful implementation of initiatives to enhance performance. He emphasized UBA’s customer focus, geographical and product diversification, and focus on high-quality, risk-adjusted revenues, cost discipline, and maintaining sound asset quality.
UBA in a Nutshell:
UBA is a leading Pan-African financial institution serving over 25 million customers across more than 1,000 business offices and customer touchpoints in 20 African countries and 4 continents. They offer retail, commercial, and corporate banking services, facilitate innovative cross-border payments and remittances, and provide trade finance and ancillary banking services. Their presence extends beyond Africa, with operations in the United States, United Kingdom, France, and the United Arab Emirates, effectively connecting people and businesses across the continent.
