UBA half-year pre-tax profits jump 371%, declares record 50 kobo dividend

UBA Plc reported its 2023 Half-year results showing pre-tax profits grew by 370.73% year on year, reaching N403.647 billion. 

Key highlights H1 2023 vs. H1 2022:  

• Gross earnings; N981.775 billion +163.66% YoY  
• Interest Income N428.292 billion +66.42% YoY 
• Interest Expense; N150.179 billion +87.96% YoY  
• Net interest income; N278.113 billion +56.72% YoY  
• Impairment charges for credit losses on Loans, N143.932 billion +1,123.39% YoY  
• Net interest income after impairment loss on Fin. Instrument, N124.169 billion   -26.58% YoY 
• Net income on fees and commission N78.296 billion, +30.68% YoY. 
• Net Trading & Forex Gains N418.278 billion, +4,473.84 YoY 
• Other operating income N9.271 billion +1.37% YoY 
• Profit for the period N378.235 billion +437.76% YoY. 
• Loans and advances to customers N4.50 trillion +43.49%. 
• Cash and Balances N3.434 trillion +34.48% 
• Total Assets N15.382 trillion +41.67%. 
• Customers’ deposits N11.14 trillion +42.36%. 

Insights

UBA’s significant growth in pre-tax profit can be attributed to the growth in net trading and forex gains primarily attributed to a substantial net fair value gain on derivative assets in H1 2023. 

•   Also, the Bank reported a 66.42% growth in interest income generated from loans and advances extended to customers, which primarily contributed to the overall growth in the bank’s interest income  
• However, the bank experienced substantial growth in impairment charges for credit loss on loans, which surged by 1,123.39% YoY reaching N143.932 billion.