The United Bank for Africa Plc has reported a 33.2 per cent growth in its profit before tax for the unaudited third quarter financial results ended September 30, 2017.
The pan-African financial institution’s result showed remarkable performance across key financial indicators.
Its PBT appreciated to N78.3bn from N58.8bn recorded in the same period of 2016.
“This impressive performance defies the slow economic recovery in Nigeria as well as some African markets, where the bank operates,” the bank stressed in a statement on Monday.
UBA’s gross earnings grew by 26 per cent to N333.9bn, as against N265.5bn reported in September 2016. The result, the bank said, was driven by the strong performance of its recurring core revenue lines, thus reflecting the increasing success of the bank’s enhanced customer engagement.
The group’s operating income stood at N236.9bn, compared to N183.3bn recorded in the corresponding period of 2016, representing a 29.3 per cent growth
In the same vein, profit after tax grew to N60.9bn, representing a 23 per cent growth over the N49.5bn recorded in the third quarter of 2016. The profitability, it said, further reflected the strong earnings capacity of the group and its capability to progressively deliver superior returns to shareholders.
While the group closed the third quarter with total assets of N3.77tn, a year-to-date growth of 7.6 per cent, it grew net loans to N1.6tn, a six per cent year-to-date growth in the loan book.
Reflecting a strong capacity for internal capital generation, the group’s shareholders’ fund grew by 13.3 per cent to N507.6bn, while it delivered an annualised 18 per cent return on average equity.
Commenting on the result, the Group Managing Director/Chief Executive Officer of the bank, 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.”
He further noted that the bank’s nine-month top-line grew by 26.3 per cent, to an unprecedented N334bn, driven particularly by the strong performance of its recurring core revenue lines.
Uzoka said, “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.”
Also speaking on UBA’s financial performance and position, the Group Chief Financial Officer, Ugo Nwaghodoh, reiterated that 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.”