UBA Plc reported its 2023 Half-year results showing pre-tax profits grew by 370.73% year on year, reaching N403.647 billion.
Key highlights H1 2023 vs. H1 2022:
- Gross earnings; N981.775 billion +163.66% YoY
- Interest Income N428.292 billion +66.42% YoY
- Interest Expense; N150.179 billion +87.96% YoY
- Net interest income; N278.113 billion +56.72% YoY
- Impairment charges for credit losses on Loans, N143.932 billion +1,123.39% YoY
- Net interest income after impairment loss on Fin. Instrument, N124.169 billion -26.58% YoY
- Net income on fees and commission N78.296 billion, +30.68% YoY.
- Net Trading & Forex Gains N418.278 billion, +4,473.84 YoY
- Other operating income N9.271 billion +1.37% YoY
- Profit for the period N378.235 billion +437.76% YoY.
- Loans and advances to customers N4.50 trillion +43.49%.
- Cash and Balances N3.434 trillion +34.48%
- Total Assets N15.382 trillion +41.67%.
- Customers’ deposits N11.14 trillion +42.36%.
Insights
UBA’s significant growth in pre-tax profit can be attributed to the growth in net trading and forex gains primarily attributed to a substantial net fair value gain on derivative assets in H1 2023.
- Also, the Bank reported a 66.42% growth in interest income generated from loans and advances extended to customers, which primarily contributed to the overall growth in the bank’s interest income
- However, the bank experienced substantial growth in impairment charges for credit loss on loans, which surged by 1,123.39% YoY reaching N143.932 billion.
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