In contrast to the N123.4 billion earned during the same time in 2021, United Bank for Africa (UBA) Plc reported a profit before tax (PBT) of N138.5 billion in its third quarter (Q3) operations.
According to the bank’s unaudited results for the fiscal year that ended on September 31, 2022, PBT increased by 12.3%, from N123.4 billion to N138.5 billion, while gross earnings also increased, from N493 billion in 2021 to N608 billion.
Its profit after taxes also rose, from N104.6 billion in 2021 to N116 billion in 2022, an increase of 10.9%. This allowed it to maintain an annualized return on average equity for the time period of 19.2%.
The bank attributed the increased performance to its diversification strategy and recent technology-driven efforts aimed at enhancing the client experience.
Additionally, the lender’s total assets reached N9.3 trillion, up 9.1% from the N8.5 trillion reported at the end of December 2021, while client deposits grew to N7.03 trillion, up 10.4% from N6.4 trillion at the end of the previous fiscal year.
Additionally, the funds owned by its stockholders were N809 billion higher than the N805 billion reported in December 2021.
Oliver Alawuba, the bank’s group managing director and chief executive officer, responded to the performance by noting that the group has continued to exhibit noteworthy operating resilience despite significant industry headwinds and a higher global risk environment. He also noted that the bank’s strong diversification model and unwavering focus on customer satisfaction continue to set it apart from its competitors in the sector.
He stated: “We continue to reap the benefits of our diversification strategy and customer -1st philosophy, as well as build resilience in our operations across Africa and the rest of the world to support the mission of providing superior value to our stakeholders.
“This has translated into strong financial gains evident in growth in our customer deposits and net interest margin. In addition, we are strategically positioned to drive our market share in our operating countries, with the strong growth of our payments and transaction banking offerings,” Alawuba stated.
Executive Director, Finance & Risk Management, Ugo Nwaghodoh, said: “The Group’s profitability increased by 12.3 per cent to N138.5 billion, with underlying growth in our key income lines and moderation in our cost of funds.
“We remain very cautious in risk asset creation as we defensively position our asset portfolios to minimize the impact of the heightened credit risk. Consequently, our NPL ratio remains within acceptable threshold at 3.2 per cent,” he said.