UBA posts 110% rise in gross earnings in Q1

United Bank for Africa Plc (UBA) has posted gross earnings of N570.2 billion in its First quarter 2024 operations against N271.1 billion recorded in the corresponding period in 2023.

Specifically, the group achieved 110 percent rise in gross earnings from N271.1billion to N570.2 billion while Profit Before Tax (PBT) rose by 155 percent from N61.7 billion in Q1 2023, to N156.34 billion in Q1 2024.

Similarly, Profit After Tax soared from N53.5 billion to N142.5 billion, representing an increase of 165 percent. The bank attributed the improved performance to effective risk management and governance, customer focus, and geographic diversification.

Additionally, interest income grew by 130 percent, to N440.7 billion while operating income increased by 115 percent, from N175.7 billion in 2023 to N378.59 billion.

Commenting on the results, UBA’s Group Managing Director, Oliver Alawuba, said the Group delivered a strong first quarter performance, building on the solid momentum of 2023, as well as the ongoing execution of its long-held strategy of customer focus, geographic diversification, and effective risk management and governance.

He said: “Our record Q1 profit before tax was delivered with triple-digit gross earnings growth, supported by very strong interest and non-interest income.”

Its fees and commissions rose by 118 per cent year-on-year on the back of improved efficiencies and continued digital adoption.

According to the bank, this has helped to drive improvement in efficiency and customer satisfaction, even as the Group recorded cost-to-income ratio of 57.8 per cent.

“The Group’s balance sheet grew steadily with total assets increasing by 23 per cent to N25.4 trillion while customer deposits closed at N18.4 trillion, recording a 23.per cent increase year-on-year, largely attributed to growth in current accounts and savings accounts.

“Our unwavering commitment to sound governance, robust risk management, and financial strength positions us for continued growth, while we contribute meaningfully to inclusive economic development across our network.

Also speaking on the performance, UBA’s Executive Director, Finance and Risk, Ugo Nwaghodoh, said the Group’s operating results for the quarter showed the actions taken to enhance the Group’s performance.

He said, “Our first quarter results highlight our relentless customer focus and the strength of UBA’s geographic and product diversification, with good performance across all our regions.

“We continue to differentiate ourselves across all key financial metrics, with a keen focus on high-quality risk adjusted revenues and cost discipline, while maintaining very sound asset quality.

“We remain committed to reducing both interest expense and operating expenses and expect to make steady progress as we move through the year toward our stated profitability targets.”