United Bank for Africa (UBA) Plc has announced an impressive N525.31 billion profit after tax for the third quarter ended September 30, 2024.
This marks a 16.9% increase compared to the N449.26 billion recorded during the same period in 2023, according to the bank’s unaudited financial report submitted to the Nigerian Exchange Ltd. (NGX) on Monday.
The financial giant also saw its profit before tax rise by 20.2%, reaching N603.48 billion, compared to N502.09 billion posted in Q3 2023. UBA’s gross earnings for Q3 2024 surged by 83.2%, climbing to N2.398 trillion from N1.308 trillion recorded in the corresponding period last year.
A key driver of the bank’s performance was its net interest income, which skyrocketed by 149%, totaling N1.103 trillion for the quarter, a significant jump from N443.0 billion recorded in Q3 2023.
Resilient Financial Performance
UBA Group Managing Director, Mr. Oliver Alawuba, emphasized the bank’s strong balance sheet during the review period. Total assets surged to N31.801 trillion, reflecting a 54% increase from N20.653 trillion at the end of December 2023.
Alawuba attributed the bank’s growth to its innovative, technology-driven initiatives, which have enhanced customer experience. UBA’s total deposits climbed to N26.50 trillion, a 52.7% rise from N17.355 trillion recorded at the end of 2023.
In terms of shareholder value, the bank’s shareholders’ funds increased to N3.585 trillion, up from N2.030 trillion in December 2023, driven by UBA’s robust internal capital generation and sustainable growth.
“We achieved a profit before tax of N603.5 billion, and our intermediation business continues to show strong growth with net interest income expanding by 149% year-on-year to N1.10 trillion,” Alawuba said. He also noted that the bank’s net interest margin (NIM) closed at 8.03%, which is a 17.60% improvement over 2023, despite persistent macroeconomic challenges, geopolitical tensions, and inflationary pressures across its markets.
Alawuba highlighted that UBA’s substantial investments in technology are delivering tangible business value, optimizing operational efficiency, and driving customer satisfaction.
Operational Efficiency and Future Growth
UBA’s Executive Director of Finance and Risk, Mr. Ugo Nwaghodoh, shared his excitement about the bank’s operational efficiency, noting that its cost-to-income ratio has normalized around 50%. He added that the bank’s growth in shareholders’ funds signals a strong capacity for future expansion.
Looking ahead, Nwaghodoh confirmed that UBA remains on track to sustain its performance for the remainder of the 2024 financial year. The bank has finalized plans to increase its share capital to support medium and long-term growth objectives, while aligning with regulatory requirements across its operational jurisdictions.
“UBA remains committed to sustainable growth in core banking revenue lines while maintaining a strong compliance and risk management culture,” Nwaghodoh added.
A Leading Pan-African Financial Institution
UBA is one of Africa’s leading financial institutions, providing banking services to over 45 million customers through a vast network of 1,000 business offices and customer touchpoints across 20 African countries.
The bank’s robust Q3 2024 performance highlights its ongoing resilience, driven by strategic investments and a commitment to sustainable growth amid a challenging global environment.
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