UBA Reports N24.9b Profit for Q3, 2019

• UBA Reports N24.9b Profit for Q3, 2019

The United Bank for Africa (UBA) Plc, one of Nigeria’s leading financial institutions, grew its profit by 28.05 percent for the period ended September 30, 2019.

In the financial statements released through the Nigerian Stock Exchange (NSE) on Monday, the lender grew profit for the period from N17.906 billion recorded in the same period of 2018 to N24.888 billion in the third quarter (Q3) of 2019.

Profit was aided by 18.79 percent jump in net interest income from N39.622 billion reported in the corresponding quarter of 2018 to N48.791 billion in Q3, 2019.

Similarly, non-interest income inched higher by 12.36 percent to N34.564 billion, up from N30.290 billion.

The lender grew operating income by 16.13 percent from N69.912 billion in the same period of 2018 to N83.355 billion in Q3, 2019.

Again, operating expenses surged by 12.8 percent during the quarter under review to N52.034 billion, up from N45.381 billion recorded in the same period of 2018.

While profit before income tax increased by 24.9 percent from N20.971 billion in Q3, 2018 to N27.959 billion in Q3, 2019.

The bank’s total assets grew from N4.86 trillion in the final quarter of 2018 to N4.96 trillion as at the end of Q3, 2019.

Accordingly, the bank’s liabilities rose from N4.37 trillion to N4.41 trillion while total equity as at the end of Q3, 2019 stood at N555.53 billion, up from N502.608 billion achieved in Q4, 2018.

Speaking on the performance, Mr. Kennedy Uzoka, the Group Managing Director/CEO, United Bank for Africa Plc (UBA), said: “I am pleased with the half performance of the group, having delivered 14 per cent growth in gross earnings and 21 per cent growth in profit before tax. Despite the subdued yield environment in some of our large markets, we achieved a nine per cent growth in interest income and defended the net interest margin.

“We also achieved a 39 per cent growth in our electronic banking revenues, as we broaden and deepened our digital banking play across Africa. Revenues from our remittance and funds transfer businesses grew 69 per cent and 53 per cent respectively. All these factors attest to the efficacy of our strategies and the resilience of our business model.”

The lender declared an interim dividend of N0.20 per share for every ordinary share of N0.50 each held by its shareholders.