Pan African financial institution, United Bank for Africa Group, UBA, Plc has released its unaudited earnings results for the first quarter, Q1, ended March 31, showing double-digit improvement across all its major income lines.
The bank leveraged on modest growth in both interest and non-interest income as well as increased efficiency to deliver an impressive 8.5 percent year-on-year growth in profit before tax in the first three months of 2020, to N32.7 billion compared with N30.2 billion recorded in the first quarter of 2019.
Also, the bank sustained its strong profitability, recording an annualised 20% Return on Average Equity, RoAE.
The bank recorded an 11.8% percent year-on-year growth in gross earnings to close at N147.2 billion for the three months ending March 2020, compared to N131.7 billion recorded in the first three months of 2019.
The bank’s total assets also rose by 13.4% to N6.4 trillion in the period under review, compared to N5.6 trillion recorded at the end of the 2019 financial; while shareholders’ funds grew to N612.6billion from N597.9 billion in the same period.
Reacting to the result, the Group Managing Director/CEO of UBA Plc, Mr. Kennedy Uzoka, expressed satisfaction with the bank’s performance in the first quarter of 2020, despite a challenging business environment.
He said: “We are pleased with our top and bottom lines in the first quarter of 2020, delivering N147.2 billion in gross earnings and profit before tax of N32.7 billion.
“The double-digit growth in the topline testifies to the resilience of our business model as a group, even as the 17% growth in our fees and commission income underscores our diversified business model, enabling us to deliver best value to our stakeholders, even in tough macro-economic scenarios.
“I am very excited about recent successes we have recorded in all our business segments, especially our retail and electronic banking businesses within the period, with retail deposits accounting for 72% of customer deposits even as cost-of-funds moderates to 3.3%.
“We will continue to grow market share in all our markets, while maintaining cost discipline across our businesses, driving efficiency in our processes using best-rated technology.”