United Bank of Africa (UBA) has released its third quarter financial results ended September 30, 2017, on the Nigerian Stock Exchange (NSE) with a growth of 23 per cent in its profit after tax.
The bank’s Profit After Tax (PAT) grew to N60.9 billion representing an impressive 23 per cent growth over the N49.5 billion recorded in the third quarter of 2016.
This profitability further reflects the strong earnings capacity of the group and its capability to progressively deliver superior returns to shareholders.
The financial institution said its gross earnings grew by 26 per cent to N333.9 billion, as against N265.5 billion reported in September 2016.
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.
The group’s operating income stood at N236.9 billion, compared to N183.3 billion recorded in the corresponding period of 2016, representing a 29.3 per cent growth, while net interest income was N152.2 billion against N112.0 billion in 2016.
The bank’s impairment loans increased to N12.9 billion from N9.0 billion in the previous year.
Total operating expenses also grew to N145.6 billion from N115.2 billion in the year before.
UBA said its total assets for the period in review was N3.7 billion against N3.5 trillion in the year 2016 while total liabilities was N3.2 trillion versus N3.0 trillion in the comparing year.
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Commenting on the result, the Group Managing Director, 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 N334 billion, driven particularly by the strong performance of its recurring core revenue lines.
Uzoka stated, “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 CFO, Ugo Nwaghodoh, reiterated that the group recorded strong growth across its diversified business segments and geo-graphies.
He said, “Our Africa operations again grew strongly in the period, contributing a third of top-line and approximately 40 per cent of earnings, saying, “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.”
