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UBA Group Posts 47.5% growth in gross earnings, as PBT hits N61.4 bln in Q1

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Africa’s Global Bank, United Bank for Africa (UBA) Plc, has released its unaudited results for the first quarter ended March 31st, 2023, recording remarkable growth across all its major income lines.

The bank’s result, which was released to the Nigerian Exchange Limited (NGX) on Thursday, April 13, 2023, showed that gross earnings rose by 47.5 percent from 183.9 billion to N271.2 billion, while interest income, which stood at N125.9 billion as of March 2022, grew by 53.4 percent to N191.9 billion in the quarter under consideration.

The results further revealed that operating income rose by 39.6 percent to N175.7 billion, as against N125.9 billion recorded in the corresponding quarter of 2022.

Following the sterling performance recorded in its just released 2022 year-end financials, UBA again saw its profit before tax (PBT) rise significantly by 38.2 percent to N61.4 billion in Q1 2023, up from N44.5 billion recorded in the first quarter of 2022.

In the same vein, its profit after tax (PAT) jumped from N41.5 billion to N53.6 billion, representing an impressive 29.1 percent increase.

Commenting on the result, UBA’s Group Managing Director and Chief Executive Officer, Oliver Alawuba, explained that despite the high inflationary and challenging global environment, UBA was able to leverage the uptick in interest rates and improved digital offerings to grow funded and non-funded income, adding that he is particularly excited at the growth in PBT, which has helped to drive increased returns to shareholders, with a 22.6 percent Return on Average Equity (ROAE) compared to 19.7 percent recorded in December 2022.

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“We have continued to record improved gains in our customer acquisition and retention strategies across our countries of presence, evident in the 10.5 percent growth in customer deposits to 8.6 trillion from N7.8 trillion at the end of 2022FY.

This has enabled the group to drive increased loan growth and interest income, with loans to customers at N3.6 trillion, representing a year-to-date (YTD) increase of 5 percent. For 2023, we remain committed to improving the Group’s performance as we strategically position our entities to take advantage of emerging developments within their jurisdictions and across the globe.

We will continue to deliver excellent rewards to our stakeholders,” Alawuba said.
Also speaking on the performance, UBA’s Executive Director, Finance and Risk, Ugo Nwaghodoh, said that the performance demonstrates the group’s resilience and commitment towards delivering value and enhancing the confidence of its customers, stakeholders, and the wider public, notwithstanding the competitive landscape and current global trend in the industry.

“The impressive performance of UBA Group in the first quarter of 2023 is hinged on its continuous improvement and growth in gross earnings and balance sheet size, as gross earnings grew by 47.5 percent year-on-year to 271.2 billion and total assets increased by 4.6 percent to N11.4 trillion from N10.9 trillion as of December 2022,” Nwaghodoh stated.

Continuing, he said, “The growth in gross earnings is on the strength of increases in both interest income and non-interest income, while the growth in total assets is attributable to increased deposits due to an aggressive deposit mobilization drive that resulted in a 10.5 percent growth in customer deposits in the first quarter.”

United Bank for Africa Plc is a leading pan-African financial institution, offering banking services to more than thirty million customers across more than 1,000 business offices and customer touch points in 24 countries across four continents.

With presence in the United States of America, the United Kingdom, France, and most recently the United Arab Emirates, UBA is connecting people and businesses across Africa through retail, commercial, and corporate banking; innovative cross-border payments and remittances; trade finance; and ancillary banking services.

(omayowa@globalfinancialdigest.com; Newsroom: +234 8033 964 138)

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