Key Highlights
- UBA Plc reported a pre-tax profit of N61.37 billion in 2023 from a profit of N44.48 billion reported during the same period in 2022.
- Interest income rose to N191.88 billion from N125.08 billion recorded during the comparable period of the 2022 first quarter, representing a 53.40% growth.
- The bank increased total non-interest and income by 36.71% to stand at N56.08 billion against N41.02 billion in the same period of 2022.
United Bank for Africa (UBA) Plc, has released its unaudited financial results for the first quarter that ended March 31, 2023, showing impressive performance across major indices.
The first quarter financials, filed by the Bank at Nigerian Exchange Limited (NGx) on Thursday, showed that interest income rose significantly to N191.88 billion from N125.08 billion recorded in the 2022 financial year, representing 53.40% growth.
This is on the back of increasing inflation which the economy continues to struggle with the headline inflation rate rose to 21.91% in February 2023 compared to 21.82% recorded in the preceding month of January.
The National Bureau of Statistics (NBS), said looking at the trend, the February 2023 inflation rate showed an increase of 0.09% points when compared to January 2023 headline inflation rate.
The financial results released to the Nigerian Exchange Limited (NGX) and obtained by Nairametrics showed that the bank reported a 19.62% growth in turnover from N463.41 million in 2022 to N554.34 million in 2023.
Despite the highly challenging global economic and business environment, UBA recorded a profit before tax growth of 37.97%, to close the quarter under review at N61.37 billion, from N44.48 billion recorded in 2022.
Profit after tax (PAT) grew by 29.16% to N53.59 billion in Q1 2023, compared to N41.49 billion recorded the year before.
Interest income
- 2023 Q1: N191.88 billion
- 2022 Q1: N125.08 billion
- Change: +53.40%
Total non-interest income
- 2023 Q1: N56.08 billion
- 2022 Q1: N41.02 billion
- Change: +36.71%
Total operating expenses
- 2023 Q1: N107.31 billion
- 2022 Q1: N77.64 billion
- Change: +38.21%
Pre-tax profit
- 2023 Q1: N61.37 billion
- 2022 Q1: N44.48 billion
- Change: +37.97%
Net Profit after tax
- 2023 Q1: N53.59 billion
- 2022 Q1: N41.49 billion
- Change: +29.16%
Bottom line: The growth in pre-tax profits was due to the increase in interest income boosted by loans and advances to customers and banks, investments in treasury bills, and bonds among others.