UBA Profits Grows by 166% to N143bn in Q1
Driven majorly by improved core banking activities, United Bank for Africa (UBA) Plc profit accelerated by more than 166% year on year to about N143 billion, details of the financial services group’s unaudited report for first quarter revealed.
This translates to 169.4% year-on-year increase in earnings per share (EPS) which settled at N3.96 in the first three months of operating from N1.47 posted in the comparable period in 2023.
Details from the group’s financial results showed that interest income rose by 129.7% year on year to N440.76 billion, driven mostly by the group’s investment income.
In Q1, the bank reported +147.1% year on year growth in investment, supported by high interest rate environment. The surge came in addition to strong interest revenue from UBA’s growing loans and advances to customers.
UBA recorded a 93.9% year on year growth in interest expense, which printed at N140.09 billion due to the higher cost incurred on deposits from customers, deposits from financial institutions and borrowings.
Driving its low funding costs, UBA’s customers’ deposits rose sharply by 112.6% from the beginning of the year to date, settling at N18.38 trillion. Its current account, savings account mix improved to 87%, 300 basis points higher than previous record,
Net interest income grew by 151.3% year on year to N300.68 billion from about N120 billion 12 months ago. Further details revealed that non-interest income advanced by 38.9% year on year to N77.91 billion, supported by good expansions in net fees and commission income and net FX trading income. At the end of Q1, UBA operating income settled higher by 122.5% year on year to N373.31 billion.
The bank’s operating expenses notched higher by 104.1% year on year, triggered by expansions in employee benefits, regulatory costs and sticky inflationary pressures.
Its personnel expenses increased by 112.1%, fuel, repairs and maintenance advanced by 136.5%, AMCON levy grew by 75.5% and premium paid to NDIC rose by 111.4% during the period.
From N61.37 billion a year ago, the group’s profit-before-tax grew by 154.7% year on year to N156.34 billion. Net profit surged by 166.1% year on year to N142.58 billion from N53.59 billion 12 months ago.
Details analysis of the bank will be released by MarketForces Africa.Inflation Pressures Facing Private Sector Ease in April -PMI
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