Banking Sector

United Bank for Africa (UBA) Sustains Profitability in Q3, 2021, Grows Profit by 34.59 Percent

United Bank for Africa Plc, one of the leading financial services providers in Nigeria, sustained profitability in the third quarter (Q3) ended September 30, 2021, according to the bank’s latest unaudited financial report released on Monday.

The lender’s interest income grew by 8.54 percent from N111.556 billion achieved in the third quarter of 2020 to N121.078 billion in the third quarter of 2021.

Interest expense moderated to N39.881 billion in the quarter under review despite the increase recorded in interest income. This represents an improvement of 12.47 percent when compared to the N44.858 billion filed in the corresponding quarter of 2020.

United Bank for Africa’s net interest income stood at N81.197 billion in Q3 2021, up by 21.73 percent from N66.698 billion recorded in Q3 2020.

The bank grew net fee and commission income by 25.40 percent from N17.663 billion in Q3 2020 to N22.150 billion in Q3 2021.

Similarly, the lender grew total non-interest income by 25.22 percent to N38.041 billion in the period under review, up from N30.377 billion achieved in the corresponding quarter.

Net operating income after impairment loss on loans and receivables jumped 22.8 percent to N119.970 billion, while the total operating expenses inched higher to N73.182 billion, an increase of 20.89 percent when compared to N60.533 billion filed in Q3 2020.

Profit before tax rose by 41.87 percent from N33.244 billion in Q3 2020 to N47.166 billion in Q3 2021. United Bank for Africa paid N3.152 billion in income tax in the third quarter of 2021.

Therefore, the bank’s profit after tax grew by an impressive 34.59 percent to N44.014 billion from N32.702 billion in Q3 2020. Earnings per share expanded from N0.70 in Q3 2020 to N1.25 in Q3 2021.

Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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