United Bank for Africa Plc reported its 2023 third-quarter results showing pre-tax profits grew by 86.64% year on year, reaching N98.444 billion.
This took nine-month pre-tax profits to N502.901 billion versus N138.493 billion in the same period last year.
Key highlights Q3 2023 vs. Q3 2022:
- Gross earnings: N327.086 billion +38.64% YoY
- Interest Income: N237.999 billion +46.13% YoY
- Interest Expense; N73.030 billion +26.30% YoY
- Net interest income; N164.969 billion +57.04% YoY
- Net fees and commission income: N35.990 billion +61.37% YoY.
- Net trading and foreign exchange income: N31.975 billion +9.26% YoY
- Total non-interest income: N68.694 billion +27.98% YoY
- Operating Income: N233.663 billion +47.21% YoY
- Net operating income after impairment charge on loans and receivables: N242.991 billion +58.33% YoY
- Profit for the period N71.061 billion +55.47% YoY.
- Earnings per share N1.94 +50.39% YoY
- Loans and advances to customers N4.939 trillion +57.44%.
- Cash and Cash equivalents N4.039 trillion +58.17%
- Total Assets N16.236 trillion +49.54%.
- Customers’ deposits N11.629 trillion +48.62%.
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In Q3, UBA demonstrated an impressive financial performance with significant growth in both its top and middle-line metrics.
This strong performance, coupled with its Q2 results, led to an impressive nine-month profit after tax of N449.296 billion, making it the leader in the banking sector in terms of profitability.
- The bank’s top-line performance was primarily driven by a substantial growth in interest income, which, in relative terms, exceeded the growth in interest expenses during Q3.
- However, it’s worth noting that the bank’s bottom line could have seen even greater improvement if it had replicated the substantial foreign exchange gains achieved in the first half of the year.
- In Q3, the bank reported a modest foreign exchange gain of N31.975 billion, compared to the impressive N418.278 billion recorded in the first half of 2023. This had a moderating effect on the net trading and foreign exchange income, resulting in a total of N450.253 billion for the first nine months of 2023.
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