UBA’s Q3 earnings soar 115% as PBT rises 263% to N502.1bn

Joy Agwunobi

Africa’s Global Bank, United Bank for Africa (UBA) Plc posted an impressive performance, with significant growth across all key performance metrics in its recently released unaudited financial results for the third quarter ended September 30, 2023.

This is as the banking group with operations in 20 African countries and offices in three global financial centres recorded a growth of 115.2 per cent in gross earnings to N1.309 trillion, compared to N608 billion in the same period last year. Operating income also increased significantly by 146 per cent to N1.018 trillion, from N414 billion in the previous year.

In the third quarter of 2023, UBA reported an impressive increase in Profit before Tax (PBT) of 262 per cent, rising from N138.49 billion in the previous year to N502.01 billion. Similarly, Profit after Tax (PAT)  rose by 287.2 per cent from N116 billion in the prior year to N449.29 billion. This resulted in a return on average equity for Q3 2023 of 44.37 per cent, significantly surpassing its annualised return on average equity of 131 per cent.

The  leading pan-African financial institution  maintained a solid balance sheet in the third quarter of 2023, with total assets reaching N16.24 trillion, an increase of 49.5 per cent over the N10.86 trillion reported at the end of December 2022. Additionally, its technology-driven initiatives to improve customer experience over the past few years have generated positive results, with customer deposits reaching N11.63 trillion, a 48.6 per cent increase from N7.8 trillion in the prior year.

UBA shareholders’ funds remained robust at N1.778 trillion, up from N922.1 billion in December 2022, reflecting the bank’s ability to generate internal capital and drive growth.

Oliver Alawuba, the group managing director/CEO of UBA Plc, commented on the results, highlighting the group’s ongoing commitment to delivering value to shareholders and various stakeholders. He noted that the group’s significant improvement in key performance metrics was driven by the impact of FX harmonisation, efficient balance sheet management, and service-focused strategies.

Aluwuba also dwelled on the bank’s plans and strategies for sustaining and surpassing its performance by the end of the year, noting that the bank will continue to leverage its customer-centric strategies, speed to market, and innovation to consolidate market share in its various jurisdictions.

“Looking ahead, we are optimistic that the growth trajectory will be sustained in the final quarter of the year as we remain focused on consolidating the gains achieved so far in delivering enhanced returns to our shareholders.,”he remarked.

Ugo Nwaghodoh,UBA’s executive director of finance & risk, commented that the bank’s performance in the third quarter is a testament to its strong momentum, as it continues to deliver continuous improvements across its businesses and key performance metrics.

Nwaghodoh said the performance was driven by the combined impact of higher asset yields, lower funding costs, and improved balance sheet management. He also expressed confidence in the bank’s ability to sustain this momentum and continue to deliver strong financial results.

The executive director went on to explain UBA’s strategy for a stellar performance by the end of the 2023 financial year. He also emphasised the bank’s commitment to delivering sustainable and improved performance across its business segments, despite the changing monetary and fiscal regimes in its markets.