United Bank for Africa Plc (UBA) continues to impress with its financial performance, as evidenced by the latest quarterly report.
In the third quarter of 2023, the bank achieved remarkable growth, with gross earnings surging by 115.2% to reach N1.309 trillion, compared to N608 billion in the previous year.
Operating income also saw a substantial increase of 146%, rising from N414 billion in September 2022 to N1.018 trillion in the same period of 2023.
The financial report revealed an impressive 262% rise in Profit before Tax (PBT), reaching N502.01 billion, a significant increase from N138.49 billion recorded in the third quarter of 2022. Profit after tax also soared by 287.2%, from N116 billion in the previous year to N449.29 billion, substantially exceeding its annualized return on average equity for Q3 2023 at 131%, or 44.37%.
UBA’s balance sheet remains robust, with Total Assets reaching N16.24 trillion, marking a 49.5% increase from N10.86 trillion at the end of December 2022. Customer Deposits also grew to N11.63 trillion, reflecting a 48.6% rise from N7.8 trillion in the previous financial year. Shareholders’ funds increased to N1.778 trillion, up from N922.1 billion recorded in December 2022, showcasing the bank’s strong internal capital generation and growth capacity.
In the second quarter results, UBA had demonstrated significant progress in increasing its market share and contribution from subsidiaries in Africa and globally. The group reported a profit before tax of N404 billion, a remarkable 371% increase compared to N85.75 billion recorded in the first half of 2022, resulting in an annualized Return on Average Equity of 57.7%, compared to 17.1% a year earlier. Operating income also saw impressive growth, reaching N783.96 billion, up from N255.67 billion reported a year earlier.
Gross Earnings in the first half of 2023 increased by 164% to N981.78 billion, up from N372.36 billion recorded in the same period of 2022. Total Assets surpassed the N15 trillion mark, reaching N15.38 trillion, reflecting a 41.7% increase from N10.86 trillion at the end of the previous year. Customer Deposits rose by 42.4% to N11.14 trillion, compared to N7.8 trillion at the end of 2022. Shareholders’ Funds increased to N1.712 trillion, highlighting the Group’s strong internal capital generation.
Commenting on the third-quarter results, UBA’s Group Managing Director/CEO, Mr. Oliver Alawuba, emphasized the Group’s commitment to delivering value to shareholders and stakeholders through sustained and remarkable performance. He also discussed the bank’s strategy to consolidate its gains by leveraging customer-centric approaches, speed to market, and innovation to expand market share in various jurisdictions.
Mr. Alawuba expressed optimism that the growth trajectory will continue in the final quarter of the year, as UBA remains focused on enhancing returns to its shareholders. The bank has been consistently pushing the boundaries of performance, even in the face of economic challenges in Nigeria and Africa.
UBA’s initiatives to support Small and Medium Scale Enterprises (SMEs) across the African continent, partnerships with the African Continental Free Trade Area (AfCFTA) secretariat, investments in the creative industry, and its commitment to employee welfare have also contributed to its impressive standing in the banking sector.
UBA has not only excelled in its financial performance but also demonstrated a commitment to sustainability and employee well-being, further solidifying its position as a leading Pan-African financial institution.
