United Bank for Africa (UBA) Plc has delivered an impressive financial performance for the third quarter of 2023, showcasing substantial growth in key financial metrics.
Gatekeepers News reports that UBA announced the development in its recently released second-quarter performance for the third quarter ended September 30, 2023.
UBA reported a remarkable growth of 115.2%, with gross earnings surging to N1.309 trillion compared to N608 billion in the previous year and recorded a 146% increase in operating income, rising from N414 billion in September 2022 to N1.018 trillion in the third quarter of 2023.
For the Profit Before Tax (PBT), UBA reported a staggering 262% rise in PBT, reaching N502.01 billion, in comparison to N138.49 billion recorded in the same period in 2022.
Also, the bank’s Profit After Tax (PAT) saw a significant surge, increasing by 287.2% from N116 billion in the previous year to N449.29 billion.
UBA’s strong performance is attributed to several factors, including efficient balance sheet management, its customer-focused strategies, and the impact of foreign exchange (FX) harmonization. The bank has been successful in maintaining a robust balance sheet with Total Assets reaching N16.24 trillion, reflecting a 49.5% increase over the N10.86 trillion recorded in December 2022.
Customer Deposits also experienced substantial growth, rising to N11.63 trillion, a 48.6% increase from N7.8 trillion at the end of the last financial year. Shareholders’ funds remained robust at N1.778 trillion up from N922.1 billion recorded in December 2022 , indicating the bank’s capacity for internal capital generation and growth.
Commenting on the result, UBA’s Group Managing Director/CEO, Mr. Oliver Alawuba, remarked that the Group has once again shown sustainable and remarkable improvement in key performance metrics over the period, reflecting its commitment to delivering value to shareholders and various stakeholders.
He said, “This significant improvement is attributed to the impact of FX harmonization, efficient balance sheet management, and our service-focused strategies. Our banking operations outside of Nigeria have continued to capture the broader business opportunities inherent across, and beyond Sub-Saharan Africa.”
Speaking on plans and strategy to sustain and surpass the performance at the end of the year, the GMD explained that the bank will continue to leverage its customer-centric strategies, speed to market, and innovation to consolidate market share in its various jurisdictions, as he pledged the bank’s commitment towards expanding and deepening digital and other transactional banking offerings while building strategic alliances to take advantage of emerging opportunities in due time.
“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.
The bank’s Executive Director, Finance & Risk, Ugo Nwaghodoh, 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.”
United Bank for Africa is a leading Pan-African financial institution with a strong presence in 20 African countries, as well as locations in New York, London, Paris, and Dubai. The bank serves more than 25 million customers across various business offices and touchpoints, offering retail, commercial, and corporate banking services, cross-border payments, remittances, trade finance, and more.
