Q3 2023: UBA Records 115% growth in Gross Earnings as PBT Grew by 263% to $757.84M

Consolidating on its recently released second-quarter performance, Africa’s Global Bank, United Bank for Africa (UBA) Plc, has again announced a splendid performance in its unaudited financial results for the third quarter ended September 30, 2023, recording impressive growth across all key performance metrics. 

Replicating the remarkable performance achieved in the first two quarters of the current fiscal year, the bank’s gross earnings grew by 115.2 per cent to $1.98 billion up from $1.4billion recorded last year, while operating income rose by 146 per cent from $951.87 million in September 2022 to $1.54 billion in the year under consideration. 

The bank’s financial report filed with the Nigerian Exchange Limited, indicated a whopping 262% rise in profit before tax (PBT) to close at $757.84 million compared to $318.36 million recorded at the end of the third quarter of 2022, while profit after tax also rose impressively by 287.2% from $266.64 million recorded a year earlier to $678.13 million, massively surpassing its annualised return on average equity for Q3 2023 at 131 per cent to 44.37%.

As in the preceding quarters, UBA continues to maintain a very strong balance sheet, with total assets rising to $20.9 billion, representing a 49.5% increase over the $14 billion recorded at the end of December 2022, just as the bank benefitted largely from its technology-led initiatives targeted at improving customer experience over the past few years, with customer deposits rising to $14.97 billion, representing a 48.6% rise, up from $10.04 billion at the end of the last financial year. 

UBA shareholders’ funds remained very strong at $2.29 billion up from $1.19 billion recorded in December 2022 again reflecting a strong 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 harmonisation, 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 and 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 costs 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 Plc is a leading Pan-African financial institution, offering banking services to more than 45 million customers, across 1,000 business offices and customer touch points in 20 African countries. With a presence in New York, London, Paris and Dubai, 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.