UBA’s Q3 2024 growth powered by tech investments, diversification, says Alawuba

Group Managing Director/CEO, Oliver Alawuba has expressed satisfaction with the third quarter results of the bank ending September 30, 2024, attributing the growth to UBA’s strategic investments in technology and its diversified revenue streams.

He stated, “Despite macroeconomic headwinds, our net interest income grew by 149 per cent year-on-year, with our net interest margin improving to 8.03 per cent.”

Building on its strong half-year results, UBA’s unaudited financials reveal a gross earnings increase of 83.2 per cent year-on-year to N2.398 trillion, up from N1.308 trillion in the same period last year.

Net interest income surged by 149 per cent, reaching N1.103 trillion, a sharp rise from N443.0 billion in the third quarter of 2023.

Profit before tax (PBT) also saw a notable jump of 20.2 per cent, climbing to N603.48 billion compared to N502.09 billion in 2023. Similarly, profit after tax rose by 16.9 per cent to N525.31 billion, underscoring the bank’s resilience in the face of challenging macroeconomic conditions.

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UBA’s total assets experienced a remarkable 54 per cent growth, reaching N31.801 trillion, largely driven by its technology-led initiatives aimed at enhancing customer experience.

Total deposits increased by 52.7 per cent, rising to N26.50 trillion from N17.355 trillion at the end of 2023. Shareholders’ funds saw a 77 per cent increase to N3.585 trillion, reflecting strong internal capital generation and positioning the bank for further expansion.

Analysts have expressed confidence in UBA’s ability to sustain its growth trajectory.

An industry analyst from CardinalStone Partners noted, “UBA’s aggressive investment in digital infrastructure and its strategic cost-cutting measures have positioned the bank well for long-term growth. Their ability to increase deposits and maintain a strong balance sheet in such a volatile market is commendable.”

UBA’s Executive Director, Finance & Risk, Ugo Nwaghodoh, emphasized the bank’s focus on operational efficiency, pointing out the improvement in the cost-to-income ratio, which now hovers around 50 per cent.

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Nwaghodoh also highlighted UBA’s plans to boost its share capital in alignment with new regulatory requirements, further strengthening its growth outlook.

Looking ahead, UBA aims to continue optimizing its cost structure while exploring new opportunities for expansion across its African and global markets.

With a presence in 20 African countries, as well as New York, London, Paris, and Dubai, UBA remains committed to leveraging its cross-border banking services to drive further growth.

Analysts remain optimistic about the bank’s future, particularly as it navigates regulatory challenges and leverages its technological advancements to enhance customer service and operational efficiency.