UBA posts N77.1 billion Profit in 9M 2020

United Bank for Africa Plc (UBA) has posted the sum of N77.13 billion as its Profit After Tax (PAT) for the period ended September 30, 2020 — a decline of 5.51% YoY.

This is according to its latest financials sent to the Nigerian Stock Exchange market today and seen by Nairametrics.

Key highlights of the 2020 9M results are:

• Profit After Tax declined to N77.1 billion, down by -5.51% Y-o-Y.
• Pre-tax profit declined to N90.4 billion, indicating a loss of -8.7% Y-o-Y.
• Net interest income increased to N186.02 billion, up by +17.05% Y-o-Y
• Net fee and commission income fell to N56.3 billion, down by -11.1% Y-o-Y.
• Total non-interest income marginally increased to N107.8 billion, up by +0.64% Y-o-Y
• Operating income increased to N293.8 billion, up by +10.45% Y-o-Y
• Employee benefit expenses increased to N66.6 billion, indicating an upward trend of +20.7% Y-o-Y
• Total operating expenses increased to N192.7 billion, up by +19.2% Y-o-y
• Earnings Per Share declined to N2.16, down by -6.9% Y-o-Y.
• Loans and advances to customers increased to N2.38 trillion between December 2019 and September 2020, up by +15.6% Y-o-Y
• Total assets grew to N7.06 trillion in September 2020, from N5.6 trillion as at December 2019, up by approximately +26%
• Between December 2019 and September 2020, deposits from customers increased to N5.2 trillion, indicating an increase of +35.7%

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Bottom Line:

The gains recorded in the net interest income and other income component were eroded by an increase in total operating expenses which negatively impacted pre-tax profit. Gains recorded in current and non-current assets components lifted the total assets value within the period under view.