UBA Profit Hits N44.5bn As Gross Earnings Soar By 18%

United Bank for Africa (UBA) Plc has announced that its gross earnings rose by 18.3% from N155.4 billion in 2021 to N183.9 billion in its unaudited results for the first quarter ended March 31, 2022.

In a recent statement released to the Nigerian Stock Exchange, the bank’s results also showed that operating income which stood at N106.6 billion as at March 2021, grew by N18% to N125.9 billion in the year under consideration.

The results revealed that the bank’s total assets also rose by 4.1% to N8.9 trillion in the period under review, compared to N8.5 trillion recorded at the end of the 2021 financial year; while shareholders’ funds grew by 2.6% to N825.7bn from N804.8 billion in the same period.

Leveraging the growth in both interest and non-interest income, the bank’s profit before tax rose to N44.5 billion as at March 2022, up from N40.6 billion a year earlier, while profit after tax stood at N41.5 billion. UBA also recorded an annualised 20.4% return on average equity (RoAE).

UBA’s group managing director/chief executive officer, Mr. Kennedy Uzoka, explained that despite the myriad of economic challenges on the global front which shaped the first three months of the year, the bank’s business model continued to show resilience.

These challenges among others, he noted include the ongoing crisis between Russia and Ukraine that has resulted in a huge supply shock, pushing up commodity prices; and the hike in the interest rates in most advanced countries aimed at tackling spiralling inflation, sparking capital flow reversal from emerging and frontier markets.

“Notwithstanding these developments, we were able to leverage gains from our large customer base and vast geographical spread to bolster earnings. We recorded double-digit growth of 18 percent in our gross earnings to N183.9 billion, with our Nigerian operation raking in 65 percent of the revenue while our operations in other countries accounted for the remainder, showing the diversity in our operations,” Uzoka said.

UBA’s group chief finance officer (GCFO), Ugo Nwaghodoh, expressed confidence that the bank will meet and surpass its target for the remaining three quarters of the year.

“We remain well-capitalised and liquid to fulfil our growth strategy, take up opportunities in key sectors, whilst navigating impending macroeconomic headwinds,” he said.