UBA sees 155% jump to N156.3bn PBT in Q1’24

Oliver Alawuba, group managing director/CEO, United Bank for Africa Plc

Onome Amuge

UBA Group recently released its unaudited financial statements for Q1 2024, showcasing its financial resilience with an impressive 155 percent year-on-year surge in profit before taxation (PBT) to N156.3 billion from the N61.4 billion posted in Q1 2023.

The impressive financial performance of the group also reflected in the reported net income of N142.6 billion during the quarter, a 166 percent leap from the N53.6 billion posted in the corresponding quarter of 2023.

Its retained earnings soared past the trillion-naira threshold as a surge in net income propelled the group’s retained earnings to N1.055 trillion in the first quarter of 2024.

The group’s net interest income went on a rocket ride in Q1 2024 posting a 151 percent year-on-year growth to N300.7 billion. In a similar positive trend, total non-interest income rose 39 percent year-on-year to reach N77.9 billion, propelled by the bank’s strategic manoeuvring and aided by Nigeria’s favourable interest rate environment.

On the flipside, UBA posted a 122.5 percent year-on-year growth in net operating income as impairment loss hit N375.3 billion in Q1 2024. The group’s  total operating expenses also rose 104 percent year-on-year to N219 billion during the period under review.

UBA’s operating expenses reflected a substantial uptick in wages and salaries, with the group’s expenditures soaring 111 percent year-on-year from N30.4 billion in Q1 2023 to N64.3 billion in Q1 2024. The group’s expenditures on fuel, repairs, and maintenance also saw a substantial surge, with costs shooting up 137 percent year-on-year to reach  N33.2 billion in Q1 2024, more than doubling the N14 billion reported in the same quarter of the previous year.

The group’s earnings per share soared 169 percent year-on-year to N3.96, revealing the immense profitability of UBA Group and the solid returns delivered to its shareholders. Total assets also surged forward by 23 percent year-to-date, hitting N25.4 billion.

It recorded an impressive FX trading in the period under review, with income from FX trading rising 96 percent year-on-year to N23.7 billion, nearly doubling the N12.1 billion reported in Q1 2023. Adding to the group’s FX bonanza, the group also recorded an FX revaluation gain of N3.9 billion, reflecting its currency trading prowess and agile response to market fluctuations.

In order to meet the increasingly stringent capital requirements of the industry, UBA Group is gearing up for a significant capital raise. The group, with its current minimum paid-up capital of N115.8 billion, aims to shore up its capital base to a minimum of N500 billion. To achieve this, the group plans to issue 10.8 billion new shares, lifting its share capital from N17.099 billion to N22.5 billion.