Kayode Tokede, the United Bank for Africa (UBA) Plc’s Group Managing Director and CEO, recently announced the bank’s unaudited results for the third quarter (Q3) ending September 30, 2024, highlighting a period of strong growth across key performance indicators.
The impressive results follow the bank’s audited half-year performance for the period ending June 30, 2024. UBA maintains a robust balance sheet, reporting total assets of N31.801 trillion as of September 2024, a significant increase of 54% from N20.653 trillion at the end of December 2023. This growth is largely attributed to the bank’s technology-driven initiatives aimed at enhancing customer experience, resulting in total deposits climbing to N26.50 trillion, a 52.7% rise from N17.355 trillion at the close of the previous financial year.
Mr. Alawuba noted shareholders’ funds also saw strong performance, rising to N3.585 trillion from N2.030 trillion in December 2023, indicating the bank’s solid capacity for internal capital generation and growth.
The Group reported a remarkable 83.2% increase in gross earnings, soaring to N2.398 trillion from N1.308 trillion a year ago. Meanwhile, net interest income experienced an impressive increase of 149%, reaching N1.103 trillion at the end of Q3 2024, compared to N443.0 billion in Q3 2023.
Additionally, the bank reported a 20.2% boost in Profit Before Tax (PBT), closing at N603.48 billion, up from N502.09 billion in the same period last year. Profit After Tax also showed a healthy increase of 16.9%, rising from N449.26 billion to N525.31 billion.
In his remarks on the results, Mr. Alawuba expressed satisfaction with the Group’s sustained growth across its revenue streams. “The UBA Group achieved a profit before tax of N603.5 billion, and our intermediation business continues to show strong growth, with net interest income expanding by 149% YoY to N1.10 trillion and net interest margin closing at 8.03%, which is 17.60% above 2023 levels, despite ongoing macroeconomic challenges and fluctuations in exchange rates,” he stated.
He emphasized that the bank’s results reflect consistent growth across all core income lines, attributing this success to the substantial investments made in technology that have translated into real business value, enhancing customer experiences and improving operational efficiency.
Finance and Risk Executive Director Ugo Nwaghodoh added to Mr. Alawuba’s comments, highlighting operational efficiency milestones. “I am delighted that we have normalized our cost-to-income ratio around the 50% range. Shareholder funds have also seen a 77% growth from N2 trillion at the end of 2023 to N3.59 trillion, showcasing the Group’s strong potential for future growth.”
Looking ahead, Nwaghodoh noted that UBA is on a strategic path to optimize costs of funds and operating expenses for the remainder of 2024 and beyond. The Group has also finalized plans to increase its share capital to support medium- to long-term aspirations while aligning with recent regulatory requirements in Nigeria and other jurisdictions. He concluded by reaffirming UBA’s commitment to sustainable growth in its core banking areas, as well as maintaining a robust compliance and risk management culture while exploring further expansion opportunities.