UBA’s Net Interest Income Surges by 149%, Reaching N1.1 Trillion in Q3 2024

United Bank for Africa (UBA) Plc has reported a 149% increase in its net interest income, which surged to N1.103 trillion by the end of the third quarter (Q3) of 2024, up from N443.0 billion recorded in the same period last year. 

For Q3 2024, UBA’s gross earnings grew by 83.2%, reaching N2.398 trillion, compared to N1.308 trillion in September 2023. This growth can be attributed to the bank’s technology-driven initiatives, particularly focused on improving customer experience. 

Furthermore, the bank’s profit before tax (PBT) saw a 20.2% increase, rising to N603.48 billion from N502.09 billion in Q3 2023. Profit after tax (PAT) similarly grew by 16.9%, climbing to N525.31 billion, up from N449.26 billion in the same period last year.

Beyond earnings, UBA’s balance sheet remains solid, with total assets rising by 54%, from N20.653 trillion at the end of December 2023 to N31.801 trillion in September 2024. Total deposits also expanded by 52.7%, growing from N17.355 trillion at the end of the previous financial year to N26.50 trillion. These figures reveal the bank’s growing customer base and its ability to maintain strong liquidity.

Fee and commission income saw an increase of 115.5%, reaching N392.839 billion in Q3 2024, compared to N182.317 billion in the corresponding period of 2023. Meanwhile, UBA’s interest income showed an exceptional year-on-year growth of 169.98%, rising from N666.291 billion to N1.759 trillion in the nine-month period ending September 2024.

Despite these positive results, the bank faced rising costs, as operating expenses grew by 118.97% while interest expenses increased by 211.62%. However, UBA has maintained an efficient cost-to-income ratio, which has normalised around the 50% range, according to the bank’s Executive Director, Finance & Risk, Ugo Nwaghodoh.

Shareholders’ funds also experienced a sharp rise, growing by 77% from N2.030 trillion at the end of December 2023 to N3.585 trillion in September 2024. This growth reiterates UBA’s strong internal capital generation capabilities, positioning the bank for continued expansion and investment in its core business areas.

Commenting on the bank’s performance, UBA’s Group managing director/CEO, Mr Oliver Alawuba, spoke about the bank’s resilience despite economic challenges, including inflation, exchange rate volatility, and geopolitical tensions. “Our intermediation business continues to thrive, with net interest income growing by 149%, and our gross earnings expanding by over 80%. This is a testament to our commitment to delivering value for our customers and shareholders,” Alawuba stated.

He further noted the role of technology in driving the bank’s success, noting that UBA’s investments in digital platforms have significantly improved operational efficiency and customer satisfaction. “Our substantial investments in technology are paying off, as they enable us to deliver better customer experiences and streamline our operations,” he added.

Nwaghodoh also reiterated the bank’s plans to optimise its cost structure and shore up its share capital to meet regulatory requirements in Nigeria and other jurisdictions. “We are well-positioned to maintain our growth trajectory, focusing on sustainable growth across our core banking income lines while ensuring compliance and robust risk management,” he said.

UBA’s continued expansion across its African markets, coupled with its presence in international financial hubs such as New York, London, Paris, and Dubai, impacts its growth across Pan-Africa. 

With more than 45 million customers and over 1,000 business offices across 20 African countries, the bank is working to maintain its upward growth trend through 2024 and beyond.