UBA’s Q3 2024 earnings surged by 83.2%, reaching N2.39tn. Net interest income jumped 149%, driven by technology-led initiatives and revenue growth.

[dropcap]U[/dropcap]nited Bank for Africa Plc (UBA) has posted impressive financial results for the third quarter of 2024, showing an 83.2 per cent year-on-year increase in gross earnings.

The bank’s earnings rose from N1.31tn in Q3 2023 to N2.39tn, reflecting the success of its strategic investments in technology and customer experience.

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The results, filed with the Nigerian Exchange Limited on Monday, highlighted a 149 per cent surge in net interest income, reaching N1.10tn at the end of Q3 2024, compared to N443bn in the same period last year.

UBA’s profit before tax also increased by 20.2 per cent, growing from N502.09bn in 2023 to N603.48bn in Q3 2024.

Similarly, profit after tax rose to N525.31bn, a 16.9 per cent improvement from N449.26bn recorded the previous year.

The bank’s total assets saw a significant increase, rising by 54 per cent to N31.80tn as of September 2024, up from N20.65tn at the end of December 2023.

This growth is attributed to UBA’s technology-driven initiatives aimed at enhancing customer service, which have contributed to improved financial performance across all core revenue streams.

UBA’s total deposits also experienced substantial growth, climbing 52.7 per cent to N26.50tn, compared to N17.355tn at the end of 2023.

Shareholders’ funds increased by 77 per cent, standing at N3.59tn from N2.03tn recorded at the end of the last financial year.

Commenting on the bank’s performance, UBA’s Group Managing Director/Chief Executive Officer, Mr Oliver Alawuba, expressed satisfaction with the continued strong growth in revenue.

“Our intermediation business continues to grow, with net interest income rising by 149 per cent year-on-year to N1.10tn, and our net interest margin closing at 8.03 per cent,” Alawuba said.

He acknowledged the challenges posed by macroeconomic headwinds, geopolitical tensions, and exchange rate volatility but emphasised that UBA has remained resilient.

Alawuba credited the bank’s success to its strategic investments in technology, which have enhanced operational efficiency and optimised customer experience. “Our substantial investments in technology are yielding tangible business value,” he added.

UBA’s Executive Director, Finance & Risk, Ugo Nwaghodoh, shared Alawuba’s optimism, particularly regarding the bank’s cost-to-income ratio, which normalised around 50 per cent.

He also highlighted the bank’s plans to strengthen its share capital to support medium to long-term aspirations and comply with regulatory requirements in Nigeria and other markets.

Nwaghodoh reaffirmed UBA’s commitment to sustainable growth in its core banking operations, robust risk management, and cost optimisation strategies.

He expressed confidence in the bank’s capacity to drive future growth while maintaining operational efficiency.

UBA’s strong Q3 performance comes on the back of a series of technology-led initiatives that have enabled the bank to maintain its competitive edge and deliver value to its customers and shareholders.