UBA makes impressive start to 2023 as Q1 earning up 47.5% with N61bn PBT

By Business A.M. 

United Bank for Africa Plc, with the proud pay-off line, Africa’s Global Bank, has made an impressive start to the 2023 financial earnings season after it reported a 47.5 percent jump in first quarter earnings and a profit before tax of N61.4 billion.

The bank’s Q1 performance was released to the Nigerian Exchange Limited (NGX)  showing gross earnings rose from N183.9 billion last year to N271.2 billion, with interest income printing N191.9 billion N125.9 billion for the period ended March 31, 2023 up by 53.4 percent from N125.9 billion recorded in the same period last year.

According to the stock exchange filing, operating income rose 39.6 percent to N175.7 billion compared to N125.9 billion posted in 2022.

In line with the bank’s strong performance in the full year 2022 financials the bank’s profit before tax (PBT), at N61.4 billion was a significant 38.2 percent rise from N44.5 billion recorded in the first quarter of 2022. After making provision for tax UBA’s profit (PAT) rose by 29.1 percent from N41.5 billion to N53.6 billion.

Oliver Alawuba, group managing director and chief executive officer, explained that despite the high inflationary and challenging global environment, UBA was able to leverage the uptick in interest rates and improved digital offerings, in growing funded and non-funded income, adding that he is particularly excited at the growth in PBT, which has helped to drive increased returns to shareholders, with a 22.6 percent Return on Average Equity (ROAE) compared to 19.7 percent recorded in December 2022.

“We have continued to record improved gains in our customer acquisition and retention strategies across our countries of presence, evident in the 10.5 percent growth in customer deposits to N8.6 trillion from N7.8 trillion at the end of 2022FY. This has enabled the Group [to] drive increased loan growth and interest income, with loans to customers at N3.6 trillion, representing a year-to-date(YTD) increase of 5%. For 2023, we remain committed to improving the Group’s performance as we strategically position our entities to take advantage of emerging developments within their jurisdictions and across the globe. We will continue to deliver excellent rewards to our stakeholders,” Alawuba said.

Also speaking on the performance, Ugo Nwaghodoh, executive director, finance and risk, said that the performance demonstrates the group’s resilience and commitment towards delivering value and enhancing the confidence of its customers, stakeholders and the wider public notwithstanding the competitive landscape and current global trend in the industry.

“The impressive performance of UBA Group in first quarter 2023 is hinged on its continuous improvement and growth in gross earnings and balance sheet size as gross earnings grew by 47.5% year-on-year to N271.2 billion and total assets up by 4.6% to N11.4 trillion from N10.9 trillion as at December 2022,” Nwaghodoh stated.

He added that, “The growth in gross earnings is on the strength of increase in both interest income and non-interest income while growth in total assets is attributable to increased deposits due to aggressive deposit mobilisation drive that resulted in a 10.5% growth in customer deposit in the first quarter.”