Bank

2024

United

Leading commercial bank in Nigeria, the <a href="https://www.ubagroup.com/" target="_blank" rel="noopener">United Bank for Africa</a> (UBA) enjoyed an impressive 52.7 per cent growth in total deposits over the first 9 months of the year. This was disclosed in the bank’s unaudited results for the third quarter ended September 30, 2024. The report was filed with the Nigerian Exchange Limited. 
According to the report, Total Deposits between January and September rose to N26.50 trillion, up from N17.355 trillion at the end of the last financial year, representing a 52.7 percent growth. The bank attributed this largely to its technology-led initiatives targeted at improving customer experience over the past few years. 
Overall the UBA report showed that the bank recorded a profit before tax of N603.48 billion in the nine months under review. This is an impressive rise from N502.09 billion recorded at the end of the third quarter of 2023, representing a 20 per cent growth in gross profit. 
In the same vein, Profit after tax also recorded significant growth, rising from N449.26 billion recorded in September last year to N525.31 billion in September this year. This represents a remarkable 16.9 per cent growth. 
The growth in profitability, according to the report, was driven by 189 per cent increase in Net Interest Income and 83.2 per cent increase in Gross earnings during the period. 
Commenting about the impressive growth numbers, UBA Group Managing Director/CEO, Mr. Oliver Alawuba, said he was delighted that the bank has continued to record strong and sustainable growth in its various revenue streams, and generally building on its strong performance earlier in the year. 
“The UBA Group achieved a profit before tax of N603.5 billion and our intermediation business continues to show strong growth with net interest income expanding by 149 per cent YoY to N1.10trillion and NIM closing at 8.03 per cent, which is 17.60 per cent above the 2023 position, despite persisting macroeconomic headwinds, geopolitical tensions, insecurity, inflationary pressure and exchange rate volatilities across our markets,” the CEO said. 
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 Mr. Oliver Alawuba, UBA Group Managing Director/CEO
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According to him, UBA’s performance has been underpinned by consistent strong growth on all core and sustainable banking income lines. He also stated that the strong growth is mostly due to substantial investments in technology that are now yielding benefits. 
“Our substantial investments in technology are yielding tangible business value.&nbsp;This commitment is instrumental in delivering enhanced customer experiences and optimizing operational efficiency,” the GMD said. 
<h4 id="uba-records-revenue-growth-strong-shareholder-funds" class="wp-block-heading">UBA records revenue growth, strong shareholder funds</h4> 
According to the nine-month report, UBA’s gross earnings grew significantly to N2.398 trillion up from N1.308 trillion recorded in September last year. This represents a 83.2 per cent rise. On the other hand, net Interest income rose to N1.103 trillion in the period under review, up from N443.0 billion at the end of September 2023. This represents an astounding 149 per cent rise. 
As in the preceding two quarters this year, The bank’s record also shows that it has continued to maintain a very strong balance sheet as Total Assets have risen to N31.801 trillion, up from N20.653 trillion recorded at the end of December 2023. This represents a 54 per cent increase. 
Similarly, shareholders’ funds remained very strong, standing at N3.585 trillion, up from N2.030 trillion recorded in December 2023.&nbsp;This reflects a strong capacity for internal capital generation and growth. 
Speaking about the bank’s operations and how it translates to impressive growth, Executive Director, Finance &amp; Risk, Ugo Nwaghodoh, expressed delight at the operational milestones achieved by the bank during the period. 
“I am delighted at the milestone reached in driving operational efficiency, reflected in cost-to-income ratio normalizing around the 50 per cent range. Shareholders’ funds recorded a 77 per cent growth from N2 trillion at FYE2023 to N3.59 trillion demonstrating the Group’s significant capacity for future growth,” Nwaghodoh said. 
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 UBA mobile app
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Speaking on plans to consolidate its performance for the rest of the 2024 financial year and beyond, Nwaghodoh said the bank remains on track with various strategies to optimize our cost of funds and operating expenses. He also said the Group has finalized plans to shore up its share capital to support its medium to long term aspirations, whilst aligning with the recent regulatory requirement in Nigeria and other jurisdictions. 
On the bank’s plans to consolidate its performance for the rest of the 2024 financial year and beyond, the ED said the bank remains on track with various strategies to optimize its cost of funds and operating expenses. 
“Furthermore, the Group has finalized plans to shore up its share capital to support its medium to long term aspirations, whilst aligning with the recent regulatory requirement in Nigeria and other jurisdictions,” Nwaghodoh said. 
See also: <a href="https://technext24.com/2024/10/22/iyin-aboyeji-fintech-founders-moaning/">New fintech founders moaning over bygone era instead of seizing new opportunities – Iyin Aboyeji</a>
The post <a href="https://technext24.com/2024/10/22/uba-records-rise-in-deposits-in-9-months/">UBA records 52.7% rise in deposits in 9 months powered by customer-focused tech initiatives</a> first appeared on <a href="https://technext24.com">Technext</a>.

UBA records 52.7% rise in deposits in 9 months powered by customer-focused tech initiatives

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