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Sound governance drove UBA’s triple-digit growth – MD

 

The Managing Director of United Bank for Africa, Oliver Alawuba, has said that sound governance, robust risk management, and financial strength spurred the banking group to triple-digit growth across key metrics in the first quarter of 2024.

Alawuba said this in a statement issued by the bank on Tuesday following the release of its Q1 results on the portal of the Nigerian Exchange Limited.

He said, “Our unwavering commitment to sound governance, robust risk management, and financial strength positions us for continued growth, while we contribute meaningfully to inclusive economic development across our network.”

The group’s results indicated year-on-year increases; gross earnings rose by 110 per cent to N570.2bn, while interest income jumped by 130 per cent to N440.7 bn.

Operating income increased by 115 per cent to N378.59bn in Q1 2023.

UBA’s profit before tax rose by 155 per cent from N61.7bn in Q1 2023, to N156.34bn in Q1 2024; while profit after tax jumped from N53.5bn to N142.5bn, representing a 165 per cent rise year-on-year.

Commenting on the results, Alawuba said the group delivered strong first-quarter performance, building on the solid momentum of 2023, as well as the ongoing execution of its long-held strategy of customer focus, geographic diversification and effective risk management and governance.

He said, “Our record Q1 profit before tax was delivered with triple-digit gross earnings growth, supported by very strong interest and non-interest income. Fees and commissions rose by 118 per cent year-on-year on the back of improved efficiencies and continued digital adoption.  This has helped drive improvement in efficiency and customer satisfaction, with the Group’s cost-to-income ratio held at 57.8 per cent.

“The group’s balance sheet grew steadily with total assets increasing by 23 per cent to N25.4 tn. Customer deposits closed at N18.4tn, recording a 23 per cent increase year-on-year, largely attributed to growth in current accounts and savings accounts.”

Also, UBA’s Executive Director, Finance and Risk, Ugo Nwaghodoh, added that the group’s operating results for the quarter showed the actions taken to enhance its performance continued to deliver.

He said, “Our first quarter results highlight our relentless customer focus and the strength of UBA’s geographic and product diversification, with good performance across all our regions.  We continue to differentiate ourselves across all key financial metrics, with a keen focus on high-quality risk-adjusted revenues and cost discipline, while maintaining very sound asset quality.

“We remain committed to reducing both interest expense and operating expenses and expect to make steady progress as we move through the year toward our stated profitability targets,” Nwaghodoh stated.

 

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