UBA’s profitability rises 9.6% to N44.5bn

By Babajide Komolafe

United Bank for Africa (UBA) Plc has recorded N44.5 billion profit before tax, PBT, for the first quarter ending March 31st 2022, Q1’22, representing a 9.6 per cent increase from N40.6 billion in the corresponding period of 2021, Q1’21.

The increased profitability was driven by 18.3% growth in gross earnings to N183.9 billion in Q’22 from N155.4 billion in Q1’21 as well as 18 per cent growth in operating income to N125.9 billion from N106.6 billion in Q1’21.

Consequently, UBA recorded profit after tax of N41.5 billion and annualised 20.4% Return on Average Equity (RoAE).

The bank disclosed this in its financial statement for Q1’22 released to the Nigerian Stock Exchange which showed that the bank’s total assets also rose by 4.1% to N8.9 trillion in Q1’22 from N8.5 trillion recorded at the end of the 2021 financial year; while shareholders’ funds grew by 2.6% to N825.7bn from N804.8 billion in the same period.

UBA’s Group Managing Director/Chief Executive Officer, Mr Kennedy Uzoka, explained that despite the myriad of economic challenges on the global front which shaped the first three months of the year, the bank’s business model continued to show resilience.

These challenges among others, he noted include the ongoing crisis between Russia and Ukraine that has resulted in a huge supply shock, pushing up commodity prices; and the hike in the interest rates in most advanced countries aimed at tackling spiralling inflation, sparking capital flow reversal from emerging and frontier markets.

“Notwithstanding these developments, we were able to leverage gains from our large customer base and vast geographical spread to bolster earnings. We recorded double-digit growth of 18 percent in our gross earnings to N183.9 billion, with our Nigerian operation raking in 65 percent of the revenue while our operations in other countries accounted for the remainder, showing the diversity in our operations,” Uzoka said.

READ ALSO: Inflation: Central Banks should raise interest rates – IMF

The GMD pointed out that amid the “Great Resignation” wave that has seen a record number of employees across the globe quit their jobs, disrupting the performance of many businesses, UBA, in the last quarter of 2021, thoughtfully reviewed upwards, the salaries of its staff as part of broad measures to retain talents, adding, “We believe our staff is part of our success story with their welfare as a top priority.”

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