Impressive Start: UBA Group posts 47.5% growth in gross earnings, profit hits N61.4bn

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 ₦271.2 billion; while Interest Income which stood at ₦125.9 billion as at March 2022, grew by 53.4% to ₦191.9 billion in the quarter under consideration.
The results further revealed that Operating Income rose by 39.6 percent to ₦175.7 billion, as against ₦125.9 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) rising significantly by 38.2 percent to ₦61.4 billion in Q1 2023, up from ₦44.5 billion recorded in the first quarter of 2022. In the same vein, its profit after tax (PAT) jumped from ₦41.5 billion to ₦53.6 billion, representing an impressive 29.1 percent increase.

Commenting on the result, UBA’s Group Managing Director/ Chief Executive Officer, Mr. 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, in growing 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% Return on Average Equity (ROAE) compared to 19.7% recorded in December 2022.
“We have continued to record improved gains in our customer acquisition and retention strategies across our countries of presence, evident in the 10.5% growth in customer deposits to ₦8.6 trillion from ₦7.8 trillion at the end of 2022FY. This has enabled the Group drive increased loan growth and interest income, with loans to customers at ₦3.6 trillion, representing a year-to-date(YTD) increase of 5%. 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 first quarter 2023 is hinged on its continuous improvement and growth in gross earnings and balance sheet size as gross earnings grew by 47.5% year-on-year to ₦271.2billion and total assets up by 4.6% to ₦11.4 trillion from ₦10.9 trillion as at December 2022, ” Nwaghodoh stated.
Continuing, he said, “The growth in gross earnings is on the strength of increase in both interest income and non-interest income while growth in total asset is attributable to increased deposits due to aggressive deposit mobilization drive that resulted in a 10.5% growth in customer deposit 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 over 1,000 business offices and customer touch points, in 24 countries and across 4 continents.
With presence in the United States of America, the United Kingdom and France and 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.