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UBA Group reports record N607 billion profit, buoyed by higher interest income, fx gains

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UBA Nigeria Plc, one of Nigeria’s oldest and largest banks, reported its audited accounts for 2023, revealing gross earnings of N2 trillion, a significant increase from N835 billion just a year earlier.

This achievement marks the bank’s highest gross earnings on record and ranks as one of the highest in the banking sector for 2023.

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Following this remarkable top-line performance, the bank announced a profit after tax of N607.696 billion in 2023, which represents a 257% surge from N170.277 billion in 2022.

This performance not only sets a record for the bank but also ranks among the top two best results observed so far.

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Key highlights

  • Gross Earnings: N2 trillion (+139.5%)
  • Interest Income: N1,075 (+93%)
  • Net Interest Income: N707.540 billion+ 86%
  • Net Fees and Commission Income: N189.059 billion (+47.7%)
  • Trading and Foreign Exchange Gains: N659.25 billion (+814%)
  • Profit Before Income Tax: N757.680 billion, (+277%)
  • Profit for the Year: N607.696 billion (+257%)
  • Earnings per share: N17.49 (+264%)
  • Deposits from customers: N14.89 trillion (+90.3%)
  • Loans and Advances to customers: N5.28 trillion (+66.7%)
  • Total Assets: N20.653 trillion (+100%)
  • Net Assets: N1.962 trillion (+121%)
  • Retained Earnings: N919.8 billion (+114%)
  • Share capital + Premium: N115.8 billion
  • Cash & Cash Equivalent: N3.2 trillion (+166%)
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Commentary

UBA’s blistering full year performance is largely driven by its an impressive growth in its Interest Income which surged a whopping 93% to over one trillion naira.

  • This is also evidenced by an aggressive growth in its loan book jumping 66.7% to N5.28 trillion in the year under review.
  • This also resulted in a net interest income after impairments of N503 billion, one of the best in the banking sector in 2023.
  • Despite its aggressive growth in its loan book, the group also reported a strong capital adequacy ratio of 32.6% up from 29.6% same period last year.
  • Contributing to the group’s interest income is interest earned from investments in treasury bills and bonds of N242.2 billion and N258.8 billion respectively.
  • Asides UBA Ghana and Kenya, all of its key subsidiaries across Africa all reported impressive profitability growth.
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On other income earned the bank’s earnings from commissions and fees is largely driven by electronic banking income, trade transaction income, credit related fees and commissions on transaction services.

  • Perhaps the most notable contributor to profits was a whopping N457 billion earned from Net fair value gain on derivatives.
  • According to the bank it raked in a massive N498.7 billion in foreign currency swaps which is a financial instruments held by commercial banks with the central bank on the other side of the trade.
  • It also earned N112.1 billion from foreign exchange income
  • The bank also reported that included in its cash and cash equivalent is an estimated N2.2 trillion from revaluation gains.
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