UBA Group Soars: Breaking Records with N607 Billion Profit Boosted by Surging Interest Income and FX Gains

UBA Group Soars: Breaking Records with N607 Billion Profit Boosted by Surging Interest Income and FX Gains

UBA Nigeria Plc, one of the oldest and largest banks in Nigeria, recently announced its audited accounts for the year 2023, unveiling remarkable financial achievements. The bank recorded a substantial increase in gross earnings, reaching an impressive N2 trillion, a significant rise from N835 billion in the previous year. This milestone not only marks the highest gross earnings in the bank’s history but also positions it as one of the top performers in the banking sector for 2023.

Accompanying this stellar top-line performance, UBA reported a profit after tax of N607.696 billion in 2023, reflecting a remarkable surge of 257% from N170.277 billion recorded in 2022. This outstanding performance not only sets a new record for the bank but also ranks among the top two best results observed in the industry.

Key highlights of UBA’s financial performance in 2023 include:

  • Gross Earnings: N2 trillion (+139.5%)
  • Interest Income: N1,075 billion (+93%)
  • Net Interest Income: N707.540 billion (+86%)
  • Net Fees and Commission Income: N189.059 billion (+47.7%)
  • Trading and Foreign Exchange Gains: N659.25 billion (+814%)
  • Profit Before Income Tax: N757.680 billion (+277%)
  • Profit for the Year: N607.696 billion (+257%)
  • Earnings per Share: N17.49 (+264%)
  • Deposits from Customers: N14.89 trillion (+90.3%)
  • Loans and Advances to Customers: N5.28 trillion (+66.7%)
  • Total Assets: N20.653 trillion (+100%)
  • Net Assets: N1.962 trillion (+121%)
  • Retained Earnings: N919.8 billion (+114%)
  • Share Capital + Premium: N115.8 billion
  • Cash & Cash Equivalent: N3.2 trillion (+166%)

UBA’s exceptional performance is attributed to several factors, including robust growth in interest income driven by a surge in its loan book, which expanded by 66.7% to N5.28 trillion. The bank also reported impressive earnings from commissions and fees, particularly from electronic banking, trade transactions, and credit-related services.

Notably, a significant contributor to UBA’s profits was a substantial N457 billion earned from net fair value gains on derivatives, with the bank also benefiting from foreign currency swaps and foreign exchange income. Additionally, the bank reported revaluation gains of an estimated N2.2 trillion included in its cash and cash equivalent.

Despite its aggressive growth, UBA maintained a strong capital adequacy ratio of 32.6%, up from 29.6% in the previous year, underscoring its financial stability and prudent management practices.

Overall, UBA’s stellar financial performance in 2023 highlights its resilience, strategic foresight, and commitment to delivering value to its stakeholders amidst a challenging economic landscape

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