Emmanuel Ochayi
United Bank for Africa Plc has just unveiled its third-quarter results for 2023, reporting 86.64% year-on-year growth in pre-tax profits, reaching N98.444 billion.
This performance has pushed the nine-month pre-tax profits to a total of N502.901 billion, a massive leap from N138.493 billion in the same period last year.
Join our WhatsApp ChannelGross earnings surged by 38.64% YoY, reaching N327.086 billion. Interest income recorded an impressive growth of 46.13% YoY, totaling N237.999 billion. Interest Expense saw an increase of 26.30% YoY, reaching N73.030 billion. Net interest income shot up by 57.04% YoY to N164.969 billion.
READ ALSO: UBA Records Double-digit Growth In Top, Bottom Lines In 2nd Quarter
Net fees and commission income displayed substantial growth, climbing by 61.37% YoY to N35.990 billion. Net trading and foreign exchange income also increased by 9.26% YoY, totaling N31.975 billion. The total non-interest income reached N68.694 billion, a rise of 27.98% YoY. Operating Income saw a notable boost of 47.21% YoY, reaching N233.663 billion. Net operating income after impairment charge on loans and receivables witnessed an astonishing growth of 58.33% YoY, totaling N242.991 billion.
Profit for the period skyrocketed by 55.47% YoY, reaching N71.061 billion. Earnings per share stood at N1.94, reflecting a 50.39% YoY increase. Loans and advances to customers grew significantly by 57.44% to N4.939 trillion. Cash and cash equivalents reached N4.039 trillion, marking a notable increase of 58.17%. Total assets reached N16.236 trillion, showcasing a remarkable growth of 49.54%. Customers’ deposits stood at N11.629 trillion, displaying an impressive growth of 48.62%.
In Q3, UBA demonstrated growth in both its top and middle-line metrics. This feat, in conjunction with its Q2 results, has led to a nine-month profit after tax of N449.296 billion.
The bank’s performance was fueled by the growth in interest income which in relative terms, outpaced the growth in interest expenses during Q3. However, it’s worth noting that the bank’s bottom line could have seen even improvement if it had replicated the foreign exchange gains achieved in the first half of the year.
In Q3, UBA reported a modest foreign exchange gain of N31.975 billion, in contrast to the 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.
