The unaudited financial results for the third quarter (Q3) ended September 30, 2023, released by United Bank for Africa (UBA) Plc, showed outstanding growth in all major performance measures.
Similar to the outstanding results seen in the first two quarters of the current fiscal year, the bank's gross earnings increased from N608 billion to N1.309 trillion, up 115.2 percent from the previous year. Meanwhile, operating income increased by 146%, from N414 billion in September 2022 to N1.018 trillion in the year studied.
Africa's Global Bank financial report, which was filed with the Nigerian Exchange Limited, summarizes the company's recently released second-quarter performance. It shows that profit before tax (PBT) increased by a staggering 262 percent to close at N502.01 billion, up from N138.49 billion at the end of the third quarter of 2022. Profit after tax also increased impressively, rising by 287.2 percent from N116 billion recorded a year earlier to N449.29 billion, significantly exceeding the annualized return on average equity for Q3 2023, which was recorded at 131 percent to 44.37 percent.
The bank has benefited greatly from its technology-led initiatives aimed at improving customer experience over the past few years, with Customer Deposits rising to N11.63 trillion, representing a 48.6 percent rise, up from N7.8 trillion at the end of the previous financial year. As in the previous quarters, UBA continues to maintain a very strong balance sheet, with Total Assets rising to N16.24 trillion, representing a 49.5 percent increase over the N10.86 trillion recorded at the end of December 2022.
The funds held by UBA shareholders remained extremely robust, rising from N922.1 billion in December 2022 to N1.778 trillion, once again demonstrating a strong ability for internal capital production and growth.
Oliver Alawuba, Group Managing Director/CEO of UBA, commented on the outcome, saying that it demonstrates the Group's dedication to providing value to shareholders and other stakeholders as it has consistently improved key performance measures over the time.
"The impact of FX harmonization, effective balance sheet management, and our service-focused strategies are attributed to this significant improvement," he stated. Our banking activities outside of Nigeria have persisted in seizing the larger commercial potential present in and around Sub-Saharan Africa.
The bank will continue to use its customer-centric strategies, speed to market, and innovation to consolidate market share in its various jurisdictions, according to the GMD, who was speaking about plans and strategy to sustain and surpass the performance at the end of the year. He also reaffirmed the bank's commitment to deepening and expanding its offerings in digital and other transactional banking, as well as to forming strategic alliances to take advantage of emerging opportunities when they present themselves.
“Looking ahead, we are optimistic that the growth trajectory will be sustained in the final quarter of the year as we remain focused on consolidating the gains achieved so far in delivering enhanced returns to our shareholders.,” Alawuba pointed out.
Ugo Nwaghodoh, the bank’s Executive Director, Finance & Risk said, “Our performance in the third quarter demonstrates the strong momentum of the Bank, as we deliver continuous improvements across our businesses and key performance metrics. This is reflective of the combined impact of higher asset yields, modest funding cost, and balance sheet optimisation.
Speaking on UBA’s strategy for an excellent performance by the end of the 2023 financial year, Nwaghodoh said, “Notwithstanding changes in the monetary and fiscal regime in some of our markets, we remain committed to driving sustainable and improved performance across our various business segments.”
Leading Pan-African financial company United Bank for Africa Plc serves over 25 million clients with banking services through 1,000 business locations and customer touch points spread throughout 20 African nations. UBA, which has offices in New York, London, Paris, and Dubai, facilitates trade finance, innovative cross-border payments and remittances, retail, corporate, and commercial banking, as well as auxiliary financial services, to link individuals and businesses throughout Africa.
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