“For 2023, we remain committed to improving the group’s performance as we strategically position our entities to take advantage of emerging developments within their jurisdictions and across the globe.”
United Bank for Africa (UBA) Plc started the new business year on a strong note with significant growths in all major income lines in the first three months of the year.
Key extracts of the interim report and accounts of the UBA Group for the first quarter ended March 31, 2023, released at the Nigerian Exchange (NGX), indicated that gross earnings rose by 47.5 per cent from N183.9 billion in first quarter 2022 to N271.2 billion in first quarter 2023. Interest Income, which stood at N125.9 billion as at March 2022, grew by 53.4 per cent to N191.9 billion by March 2023.
Operating income rose by 39.6 per cent to N175.7 billion as against N125.9 billion. Profit before tax rose by 38.2 per cent to N61.4 billion in first quarter 2023 compared with N44.5 billion recorded in the first quarter 2022. After taxes, net profit increased from N41.5 billion to N53.6 billion, an increase of 29.1 per cent.
Group Managing Director, United Bank for Africa (UBA) Plc, Mr. Oliver Alawuba, explained that despite the high inflationary, and challenging global environment, UBA was able to leverage the uptick in interest rates and improved digital offerings, in growing funded and non-funded income.
He said the growth in pre-tax profit was exciting, as it has helped to drive increased returns to shareholders, with a 22.6 per cent Return on Average Equity (ROAE) compared to 19.7 per cent recorded in December 2022.
“We have continued to record improved gains in our customer acquisition and retention strategies across our countries of presence, evident in the 10.5 per cent growth in customer deposits to N8.6 trillion from N7.8 trillion at the end of 2022. This has enabled the group drive increased loan growth and interest income, with loans to customers at N3.6 trillion, representing a year-to-date increase of five per cent.
“For 2023, we remain committed to improving the group’s performance as we strategically position our entities to take advantage of emerging developments within their jurisdictions and across the globe. We will continue to deliver excellent rewards to our stakeholders,” Alawuba said.
Executive Director, Finance and Risk, United Bank for Africa (UBA) Plc, Ugo Nwaghodoh, said first quarter performance demonstrated the group’s resilience and commitment towards delivering value and enhancing the confidence of its customers, stakeholders and the wider public notwithstanding the competitive landscape and current global trend in the industry.
According to him, the impressive performance of UBA Group in first quarter 2023 was hinged on its continuous improvement and growth in gross earnings and balance sheet size as total assets grew by 4.6 per cent to N11.4 trillion in March 2023 from N10.9 trillion last December.
“The growth in gross earnings is on the strength of increase in both interest income and non-interest income while growth in total asset is attributable to increased deposits due to aggressive deposit mobilisation drive that resulted in a 10.5 per cent growth in customer deposit in the first quarter,” Nwaghodoh said.
