By Abiola Olawale
United Bank for Africa Plc (UBA) has unveiled its highly anticipated Q1 2024 financial results, indicating impressive growth across key performance indicators.
According to the Group’s financial results, released to the Nigerian Exchange Limited (NGX) on Friday, May 3, 2024, UBA recorded an exceptional year-on-year growth. Gross Earnings surged by 110% from N271.1 billion to N570.2 billion, while Interest Income skyrocketed by 130% to N440.7 billion.
Additionally, Operating Income increased by an impressive 115% from N175.7 billion in 2023 to N378.59 billion, results which demonstrated the UBA’s dominance in the financial market and its unwavering commitment to delivering exceptional services to its clients.
UBA, styled, “Africa’s Global Bank,” also continued to deliver exceptional financial performance, with significant growth in its Profit Before Tax (PBT) and Profit After Tax (PAT). In Q1 2024, PBT rose by 155% from N61.7 billion in Q1 2023 to N156.34 billion. Additionally, PAT increased by an impressive 165% year-on-year, jumping from N53.5 billion to N142.5 billion.
Commenting on the results, UBA’s Group Managing Director, Oliver Alawuba, said these results affirm UBA’s commitment to delivering value to its stakeholders and its ability to maintain a solid financial position in the market.
He stated that the Group delivered a strong first-quarter performance, building on the solid momentum of 2023, as well as the ongoing execution of its long-held strategy of customer focus, geographic diversification, and effective risk management and governance.
Mr Alawuba said: “Our record Q1 profit before tax was delivered with triple digit gross earnings growth, supported by very strong interest and non-interest income. Fees and Commissions rose by 118% year-on-year on the back of improved efficiencies and continued digital adoption. This has helped drive improvement in efficiency and customer satisfaction, with the Group’s cost-to-income ratio held at 57.8%.
“The Group’s balance sheet grew steadily with Total Assets increasing by 23% to N25.4 trillion. Customer deposits closed at N18.4 trillion, recording a 23% increase year-on-year, largely attributed to growth in current accounts and savings accounts.”
“Our unwavering commitment to sound governance, robust risk management, and financial strength positions us for continued growth, while we contribute meaningfully to inclusive economic development across our network.”
Also on the Group’s performance, UBA’s Executive Director, Finance and Risk, Ugo Nwaghodoh, said the Group’s operating results for the quarter showed the actions taken to enhance the Group’s performance continued to deliver.
He said: “Our first quarter results highlight our relentless customer focus and the strength of UBA’s geographic and product diversification, with good performance across all our regions.
“We continue to differentiate ourselves across all key financial metrics, with a keen focus on high-quality risk-adjusted revenues and cost discipline, while maintaining very sound asset quality.
“We remain committed to reducing both interest expense and operating expenses and expect to make steady progress as we move through the year toward our stated profitability targets.”
