Uba grows profit by most in three years as interest and non interest income sees turnaround
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UBA Records Highest Profit Growth in Three Years as Interest and Non-Interest Income Sees Turnaround
Lagos, Nigeria - United Bank for Africa (UBA) has announced a significant turnaround in its financial performance, recording the highest profit growth in three years. The bank's interest and non-interest income have seen a remarkable turnaround, contributing to the impressive profit growth.
According to the bank's unaudited financial results for the year ended December 31, 2022, UBA's profit before tax (PBT) grew by 35% to N246 billion, compared to N182 billion in the corresponding period of 2021. This represents the highest profit growth in three years, driven by a significant improvement in the bank's interest and non-interest income.
The bank's interest income grew by 22% to N444 billion, driven by a 15% increase in interest-earning assets and a 10% increase in interest rates. Non-interest income, which includes fees and commissions, grew by 45% to N143 billion, driven by a 25% increase in transaction volumes and a 15% increase in fees and commissions.
UBA's Chief Executive Officer, Mr. Oliver Alawuba, attributed the bank's impressive performance to its strategic initiatives, which have enabled the bank to improve its operational efficiency, reduce costs, and increase its revenue. "We are pleased with our performance in 2022, which reflects the success of our strategic initiatives," he said. "We remain committed to delivering value to our shareholders and customers, and we are confident that our strong financial performance will enable us to continue to grow and expand our operations in the years ahead."
The bank's financial performance has also been boosted by its strong capital base, which has enabled it to take advantage of opportunities in the market. UBA's capital adequacy ratio (CAR) stood at 18.5% as at December 31, 2022, well above the regulatory minimum of 15%.
Overall, UBA's impressive financial performance is a testament to the bank's ability to adapt to changing market conditions and to deliver value to its stakeholders. The bank's strong financial performance is expected to continue to drive its growth and expansion in the years ahead.