United Bank for Africa (UBA) Plc on Monday reported gross earnings of N333.9 billion and profit before tax(PBT) of N78.3 billion for the nine months ended September 30, 2017. The gross earnings showed a growth of 26 per cent above the N265.5 billion posted in the corresponding period of 2016, while the PBT indicated a rise of 33 per cent compared with N58.8 billion in 2016.
According to the bank, this inspiring result was driven by the strong performance of its recurring core revenue lines, thus reflecting the increasing success of the bank’s enhanced customer engagement.
UBA grew its net interest income to N152.3 billion, up from N112.3 billion. Although credit impairment charges jumped from N9.1 billion to N12.9 billion, its profit after tax (PAT) improved by 23 per cent to N60.9 billion above the N49.5 billion posted in 2016.
While the group closed the third quarter with total assets of N3.77 trillion, a year-to-date (YTD) growth of 7.6 per cent, it prudently grew net loans to N1.6 trillion, a 6.0 per cent YTD growth in the loan book.
Commenting on the results, the Group Managing Director/CEO, UBA, Kennedy Uzoka, said: “These extremely positive third quarter results are an attestation of our ability to sustainably grow earnings and market share, notwithstanding the challenging operating environment. They are a tribute to our enhanced customer engagement and focus on continuous improvement in service quality.”
According to him, the bank’s nine-month top-line grew by 26.3 per cent , to an unprecedented N334 billion, driven particularly by the strong performance of its recurring core revenue lines.
“Our investment in digital channels is being rewarded, as our market share of digital banking continues to grow and we have also seen strong momentum in the trade and remittance businesses, where we have doubled the monthly run-rate in fee income, a testament to an increasingly optimistic business and currency environment,” he said.
Also speaking on results, the Group Chief Financial Officer, Ugo Nwaghodoh said the group recorded strong growth across its diversified business segments and geographies.
He said: “Our Africa operations (ex-Nigeria) again grew strongly in the period, contributing a third of top-line and approximately 40 per cent of earnings. As we consistently gain market share in digital banking, remittance and trade flows, we are sustainably growing the non-funded income line, which currently represents 28 per cent of our earnings.”
He explained that whilst high domestic inflation, notably in Nigeria and Ghana, raised external cost pressures, alongside the lag impact of Naira devaluation, the bank remains focused on cost efficiency initiatives.