UBA records N538bn profit after tax in Q3

The United Bank for Africa Plc has reported a profit after tax of N537.53bn for the third quarter of the year.

This reflects a 2.3 per cent rise from N525.31bn recorded in the same period of 2024.

According to a statement made available to Saturday PUNCH on Friday, the pan-African financial institution, in its audited results filed with the Nigerian Exchange Limited on Thursday, said it also recorded steady growth across key performance indicators, consolidating its position as one of Africa’s strongest and most diversified banking groups.

“UBA’s gross earnings grew by 3.0 per cent to N2.469tn, up from N2.398tn in September 2024.

“Similarly, net interest income rose by 6.2 per cent to N1.172tn from N1.103tn in the corresponding period of 2024,” the statement said.

The bank, however, recorded a marginal 4.1 per cent decline in profit before tax, which stood at N578.59bn, compared to N603.48bn posted in the previous year.

Its total assets increased by 7.2 per cent to N32.492tn, compared to N30.323tn recorded as of December 2024.

“Total deposits also rose by 7.7 per cent, from N24.651tn to N26.54tn within the same period.

“UBA’s shareholders’ funds remained robust at N4.301tn, a 25.8 per cent increase from N3.418tn as of December 2024, indicating a strong capacity for internal capital generation and sustainable growth,” it added.

Commenting on the performance, the Group Managing Director/Chief Executive Officer, Oliver Alawuba, said the results reflected the bank’s resilience and the strength of its diversified operations across markets.

“We delivered solid performance supported by prudent balance sheet management, innovation, and a well-diversified earnings base across all our markets,” he was quoted as saying.

Alawuba emphasised that the bank’s consistent performance demonstrated its commitment to sustainable growth despite macroeconomic headwinds.

“With profit after tax rising to N538bn from N525bn, UBA continues to reflect consistent earnings momentum and its commitment to sustainable growth, with strength in Nigeria, its African network, and global presence,” he added.

The GMD highlighted the bank’s recent capital-raising efforts, explaining that the successful completion of the final phase of its Rights Issue had bolstered its capital base.

“I am pleased to report that we have made significant progress on our capital raising, as part of the mandated industry-wide recapitalisation exercise, with the successful completion of the final Phase II of the Rights Issue. This has strengthened our capital base and will support the continued, prudent expansion of our operations across our markets,” Alawuba explained.

He reaffirmed the bank’s commitment to disciplined execution and strategic growth, assuring shareholders of sustained value creation.

UBA’s Executive Director, Finance and Risk, Ugo Nwaghodoh, said the Group delivered steady earnings growth, driven by a rise in interest income and net interest income.

“Gross earnings rose to N2.47tn, supported by a 10.1 per cent increase in interest income and a 6.2 per cent uplift in net interest income,” he said.

Nwaghodoh added that total assets grew by 7 per cent to N32.5tn, supported by focused deposit mobilisation and increased investment in earning assets.

“Shareholders’ funds expanded by 26 per cent to N4.3tn, underscoring the continued confidence of investors in the Group’s strategy, while capital adequacy and liquidity ratios remain well above regulatory thresholds and provide significant buffers to support continued growth,” he explained.

Nwaghodoh assured investors that the bank remains focused on sustaining profitability and expanding its digital income streams.

He said, “We remain focused on sustaining profitability, expanding our digital income streams, and delivering long-term value to our shareholders.”