▪︎UBA’s Group MD/CEO, Mr. Oliver Alawuba
United Bank for Africa (UBA) Plc says that harmonization of currency exchange rates by the Central Bank of Nigeria, impacted positively on its earnings in the half year ended June 30, 2023.
In a statement, UBA’s Group Managing Director/Chief Executive Officer, Mr. Oliver Alawuba, said: “The Group recorded strong double-digit growth in revenues and profits from its operations; it recorded a profit before tax (PBT) of N404 billion for the half year ended June 30, 2023.
The PBT represents an extraordinary increase of 371 per cent, when compared to N85.75 billion recorded in the first half of 2022.
The increment translated to an annualised Return on Average Equity of 57.7 per cent as against 17.1 per cent a year earlier.
Profit After Tax N378.24 billion
The results also showed a profit after tax (PAT) of N378.24 billion, representing a leap of 437.8 per cent over H1 2022.
Operating Income grew by 206.6 per cent to N783.96 billion in June 2023; higher than N255.67 billion reported a year earlier.
The Group delivered a 164 per cent growth in its Gross Earnings which rose to N981.78 billion as at June 2023, up from N372.36 billion recorded last year in June 2022.
Equally, the bank’s total assets continued a strong upward trajectory, rising above the N15 trillion mark, as it hits N15.38 trillion, representing a 41.7 per cent leap up from N10.86 trillion recorded at the end of last year.
Customer Deposits also rose by a sharp 42.4 per cent to N11.14 trillion in the period under consideration; as against N7.8 trillion recorded at the end of 2022.
Also, the Group’s shareholders’ funds stood at N1.7 trillion, with a capital adequacy ratio of 36.4%”
He said that the results reflects the effect of sizeable revaluation gains, arising from the harmonization of currency exchange rates in Nigeria.
” Our reporting currency found a new exchange level at about N756 to $1 as of 30 June 2023, compared to N465 at the beginning of the year.
The results again demonstrate the benefits of our long-held diversification strategy across Africa and globally.
The growth of our international business, most recently in the UAE, only reinforces this earnings quality,” he said.
UBA’s Executive Director, Finance and Risk, Ugo Nwaghodoh, added that the half year 2023 financial numbers reflect an excellent performance across key metrics, as the bank diligently executes its strategic priorities.
“Our HY2023 financial numbers reflect excellent performance across key metrics, as we diligently execute our priorities for the year.
Annualized return on average equity at 57.7% was bolstered by improved operating income and revaluation gains,” he said.