United Bank for Africa (UBA) Plc has achieved impressive financial growth, reporting gross earnings of N2.4 trillion for the third quarter of 2024, marking a 83.2% increase from N1.308 trillion in the same period last year.
Analysts have praised the bank’s performance, with Cordros Capital highlighting its stellar growth and boosted profitability, and FSDH Capital referring to the results as “blockbuster.” CardinalStone emphasized the importance of the bank’s core earnings, which have been crucial to the overall success.
Key financial highlights include:
- Operating income grew by 51%, from N1.02 trillion in 2023 to N1.54 trillion in 2024.
- Profit before tax (PBT) rose to N603.48 billion, up from N502.09 billion in 2023.
- Net profit increased to N525.31 billion, compared to N449.26 billion the previous year.
- Earnings per share (EPS) improved to N14.78, up from N12.93 in 2023.
The balance sheet size surged by 54% to N31.80 trillion, driven by a 52.7% increase in customer deposits, which rose from N17.355 trillion to N26.50 trillion. Additionally, loans and advances grew by 46.8%, reaching N7.68 trillion in September 2024. Total equity jumped by 76.8% to N3.59 trillion.
UBA’s robust performance was underpinned by:
- A 149% increase in Net Interest income, rising from N443 billion to N1.103 trillion.
- A 105% increase in Fee and Commission income, from N114.29 billion to N233.85 billion.
- A massive 671.2% increase in gains from forex revaluation, reaching N251.37 billion.
- Forex trading income grew by 222%, and income from investment securities rose by 68.5%.
Despite a 59.5% decline in non-interest income, mainly due to a fair value loss on derivatives, UBA’s overall performance has remained strong.
A quarter-on-quarter review also revealed growth, with gross earnings rising by 28.2% from N800.9 billion to N1.03 trillion between the second and third quarters of 2024. The bank’s net profit also grew by 17% from N173.8 billion to N205.8 billion.
Analysts have a positive outlook for UBA’s future performance, anticipating continued growth into the fourth quarter of 2024. UBA’s effective leveraging of rising interest rates and solid asset base have been crucial in driving funded income, and analysts are optimistic about further growth. The bank has also been recognized for generous dividend payouts, ranking among the top banks with the highest dividend yields.
With strong fundamentals and a positive market outlook, UBA is expected to continue expanding and delivering substantial returns for its shareholders.
CREDIT: Allneeds, THE NATION
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