2024 third quarter: UBA Group Net Interest Income hit over 218 billion FCFA.

The report shows that in the third quarter of 2024 ending September 30, the UBA Group maintained its growth momentum witnessed across all financial indices when its mid-year reports were also released.

The third quarter report also shows the same trend for the first two quarters of 2024. The gross earnings of the UBA Group recorded an 83.2 percent growth. 

It moved from FCFA 870,953,600,000 (Naira 2.398 trillion) up from 475,065,600,000 FCFA (Naira 1.308 trillion) recorded in September 2023.

The UBA Group Net Interest Income which stood at 160,897,600,000 FCFA (Naira 443.0 billion) at the end of the third quarter of 2023, rose impressively by 149 percent to 723,446,670,000,000 FCFA (Naira 1.103 trillion) in the 2024 third quarter.

To note that the financial report of the UBA Group reported on the Nigerian Exchange Limited on Monday indicated a 20.2 per cent increase in Profit before Tax (PBT) to close at 219,244,284,000 FCFA (Naira 603.48 billion). 

This is compared to 182,409,297,000 FCFA (Naira 502.09billion) recorded at the end of the third quarter of 2023. Profit After Tax, PAT also rose remarkably by 16.9 percent from 163,261,084,000 FCFA (Naira 449.26 billion) recorded last year to 190,897,654,000 FCFA (Naira 525.31 billion) in the third quarter of this year.

Reports show the UBA Group continues to maintain a very strong balance sheet, with total assets rising to 11,559,663,500,000 FCFA (Naira 31.801 trillion). 

Officials said, it represents a 54.0 percent increase over the 7,507,365,500,000 FCFA (Naira 20.653 trillion) recorded at the end of December 2023.

In the meantime, total deposits have risen to 9,632,750,000,000 FCFA (Naira 26.50 trillion), representing a 52.7 percent rise, up from 6,308,542,500,000FCFA (Naira 17.355 trillion) at the end of 2023.

UBA shareholders’ funds remained very strong at 1,303,147,500,000 FCFA (Naira 3.585 trillion) up from 738,108,000,000 FCFA (Naira 2.030 trillion) recorded in December 2023. 

The figures, UBA officials indicated, show a vibrant internal capital generation capacity.

Group Managing Director Lauds Growth

Reacting to the third quarter postings, the Group Managing Director, GMD and Chief Executive Officer, CEO, of the UBA Group, Oliver Alawuba, said the figures  speak of the bank’s strong and sustainable growth. 

He asserted that the growth in registered across different revenue streams shows the UBA Group is also building on its strong performance.

“The UBA Group achieved a Profit Before Tax of 219,372,250,000FCFA (Naira 603.5 billion)  and our intermediation business continues to show strong growth with Net Interest Income expanding by 149 percent year on  year to 399,850,000,000 FCFA ( Naira 1.10trillion) and  Net Interest Margin, NIM, closing at 8.03 percent, which is 17.60 percent above the 2023 position, despite persisting macroeconomic headwinds, geopolitical tensions, insecurity, inflationary pressure and exchange rate volatilities across our markets,” Alawuba is said to have  stated.

Alawuba said the UBA Groups consistent strong growth on all core and sustainable banking income lines justifies is comfortable position. 

He is said to have added that: “Our substantial investments in technology are yielding tangible business value. This commitment is instrumental in delivering enhanced customer experiences and optimizing operational efficiency”.

The Bank’s Executive Director, Finance & Risk, Ugo Nwaghodoh, on his part is quoted as having saluted “the milestone reached in driving operational efficiency, reflected in cost-to-income ratio normalizing around the 50 percent range”.

Ugo reiterated that, “shareholders’ funds recorded a 77 percent growth from 726,600,000,000 FCFA (Naira 2 trillion) at the financial year ending 2023 to 1,303,888,000,000 FCFA (Naira 3.59 trillion) demonstrating the Group’s significant capacity for future growth”.

Sounding positive on moves to consolidate growth for the rest of 2024, Ugo remarked that “We remain on track with various strategies to optimize our cost of funds and operating expenses. Furthermore, the Group has finalized plans to shore up its share capital to support its medium to long term aspirations, whilst aligning with the recent regulatory requirement in Nigeria and other jurisdictions.”

He explained that UBA remains committed to sustainable growth in its core banking revenue lines. Ugo insisted that the Bank will maintain its strong compliance and risk management culture, while maximizing expansion opportunities.

UBA Group in brief

To note that the UBA Group currently offers services to over forty-five million customers. The Bank has at least 1000 business offices with a presence in 20 African countries. 

The UBA Group is also present in New York, London, Paris and Dubai. It is the leading Pan-African financial house connecting people and businesses across Africa through retail, commercial and corporate banking. It is also known for its role in easing innovative cross-border payments and remittances, trade finance and auxiliary banking services.

This story was first published in The Guardian Post Edition No:3270 of Friday October 25, 2024