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Friday, July 1, 2022

UBA Profit Surges Past N100bn Mark in Show of Strength

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United Bank for Africa (UBA) Plc’s profit rose to N104 billion, with a 35.60 percent increase over the past year as the lender continues reaping income from digital banking across the business spectrum.

The pan African lender with branch network across the continent crossed the N100 billion in just 9 months of 2021, consolidating its position as one of the top five banks in Africa’s largest economy.

Despite a tough regulatory environment, interest income increased by 8.37 percent to N343.70 billion in September 2021 from N317.14 billion as at September 2020.

The uptick in interest income was largely driven by a 20.75 percent increase in fees and commission income of N67.91 billion as at September 2021.

The Group pretax profit grew by 36.49, driven by advances in earnings quality, even as operational efficiency got enhanced group-wide.

UBA’s capital base and liquidity are strong and well above regulatory minimum. This creates a strong position for value-yielding expansion and impressive returns.

It operates in 20 African Countries, USA, UK and a Rep office in Paris, and its business spans Corporate, Retail & Commercial, and Treasury and Financial Markets.

The lender’s excellent risk management strategy validates improved asset quality as it has been able to keep Non-Performing Loans (NPLs) below the regulatory threshold. It continues to deliver superior returns to shareholders while contemporaneously ensuring its digital banking revenue contributes to Group earnings.

Several investment houses have retained Buy Ratings on the Bank’s stock, and analysts are optimistic that the pan African lender has the capital buffers to surmount macroeconomic headwinds.

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