2023 Q3: UBA reports 86.64% growth in pre-tax profit

United Bank for Africa Plc reported its 2023 third-quarter results showing pre-tax profits grew by 86.64% year on year, reaching N98.444 billion. 

This took nine-month pre-tax profits to N502.901 billion versus N138.493 billion in the same period last year. 

Key highlights Q3 2023 vs. Q3 2022:  

• Gross earnings: N327.086 billion +38.64% YoY  
• Interest Income: N237.999 billion +46.13% YoY 
• Interest Expense; N73.030 billion +26.30% YoY  
• Net interest income; N164.969 billion +57.04% YoY  
• Net fees and commission income: N35.990 billion +61.37% YoY. 
• Net trading and foreign exchange income: N31.975 billion +9.26% YoY 
• Total non-interest income: N68.694 billion +27.98% YoY 
• Operating Income: N233.663 billion +47.21% YoY 
• Net operating income after impairment charge on loans and receivables: N242.991 billion +58.33% YoY 
• Profit for the period N71.061 billion +55.47% YoY. 
• Earnings per share N1.94 +50.39% YoY 
• Loans and advances to customers N4.939 trillion +57.44%. 
• Cash and Cash equivalents N4.039 trillion +58.17% 
• Total Assets N16.236 trillion +49.54%. 
• Customers’ deposits N11.629 trillion +48.62%. 

More Insights

In Q3, UBA demonstrated an impressive financial performance with significant growth in both its top and middle-line metrics.

This strong performance, coupled with its Q2 results, led to an impressive nine-month profit after tax of N449.296 billion, making it the leader in the banking sector in terms of profitability. 

• The bank’s top-line performance was primarily driven by a substantial growth in interest income, which, in relative terms, exceeded the growth in interest expenses during Q3. 

• However, it’s worth noting that the bank’s bottom line could have seen even greater improvement if it had replicated the substantial foreign exchange gains achieved in the first half of the year.  

• In Q3, the bank reported a modest foreign exchange gain of N31.975 billion, compared to the impressive N418.278 billion recorded in the first half of 2023. This had a moderating effect on the net trading and foreign exchange income, resulting in a total of N450.253 billion for the first nine months of 2023.