UBA’s Net Interest Income Soars 149%, PBT Rises To N603bn In Q3 2024

United Bank for Africa (UBA) Plc, recognized as Africa’s Global Bank, has reported a surged in net interest income by 149 percent, climbing from N443 billion in third quarter (Q3) 2023 to N1.103 trillion in Q3 2024.

This was according to the bank’s recent unaudited financial results for the third quarter ending September 30, 2024, demonstrating significant growth across key performance indicators.

The bank reported an 83.2 percent increase in gross earnings, rising to N2.398 trillion, compared to N1.308 trillion recorded in the same period last year. This impressive performance is indicative of the bank’s robust operational strategies and market positioning.

The financial report, submitted to the Nigerian Exchange Limited recently, also revealed a 20.2 percent increase in profit before tax (PBT), which reached N603.48 billion, up from N502.09 billion in the previous year. Profit after tax (PAT) rose 16.9 percent, increasing from N449.26 billion to N525.31 billion.

Maintaining a strong balance sheet, UBA reported total assets of N31.801 trillion, marking a substantial 54 percent increase from N20.653 trillion at the end of December 2023. The bank’s total deposits grew by 52.7 percent to N26.50 trillion, compared to N17.355 trillion at the close of the last financial year. This growth is largely attributed to the bank’s technology-led initiatives aimed at enhancing customer experiences.

“Our strong financial performance is a testament to the Group’s sustainable growth across various revenue streams,” commented UBA’s Group Managing Director/Chief Executive Officer (CEO), Mr. Oliver Alawuba.

He noted that the intermediation business continues to thrive, with net interest income expanding significantly year-on-year and a net interest margin (NIM) closing at 8.03 percent, reflecting a 17.60 percent improvement compared to 2023.

Mr. Alawuba emphasised that despite ongoing macroeconomic challenges—including inflation, geopolitical tensions, and currency volatility—UBA’s substantial investments in technology are yielding positive results, enhancing operational efficiency and customer satisfaction.

Echoing this sentiment, Mr. Ugo Nwaghodoh, Executive Director of Finance & Risk, expressed satisfaction with the bank’s operational efficiency, stating that the cost-to-income ratio has stabilised around the 50 percent mark. Shareholders’ funds grew by 77 percent from N2 trillion at the end of 2023 to N3.59 trillion, demonstrating the bank’s capacity for internal capital generation and future growth.

Looking ahead, Mr. Nwaghodoh outlined plans to consolidate UBA’s performance for the remainder of the 2024 financial year and beyond, stating: “We remain focused on optimising our cost of funds and operating expenses. Additionally, we have finalised plans to enhance our share capital in alignment with recent regulatory requirements.”

United Bank for Africa Plc stands as a leading Pan-African financial institution, providing banking services to over 45 million customers across 1,000 business offices in 20 African countries, alongside its presence in major global cities like New York, London, Paris, and Dubai. UBA continues to connect people and businesses across Africa through a comprehensive range of retail, commercial, and corporate banking services, innovative cross-border payments, trade finance, and more.