United Bank for Africa (UBA) Plc has recorded an after-tax net profit of N77.1 billion in its unaudited 2020 third quarter Financial Results.
The bank posted a commendable performance, with impressive growth in Gross Earnings, which rose to N454.4 billion, up from N428.7 billion recorded in September 2019.
According to the report filed with the Nigerian Stock Exchange (NSE), UBA reported a profit before tax of N90.4 billion compared to N98.2 billion recorded at the end of the third quarter of 2019.
Similarly, the bank recorded an after-tax net profit of N77.1 billion, thus putting its annualised return on average equity at 16.4 per cent.
Operating income also improved by 10.4 per cent year-on-year to close at N293.7 billion, up from N265.9 billion achieved in the corresponding period of 2019.
The bank continues to maintain a very strong balance sheet, with total assets of N7.1 trillion, a 26 per cent increase over the N5.6 trillion recorded at the end of December 2019.
UBA benefitted largely from its technology-led initiatives targeted at improving customer experience over the past few years, as Customer Deposits leaped to N5.2 trillion from N3.8 trillion at the end of the last financial year.
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Shareholders’ funds remained very strong at N655.3 billion rising by 9.6 per cent from N598.0 billion recorded in December 2019, thus reflecting a strong capacity for internal capital generation and growth.
Group Managing Director, United Bank for Africa (UBA) Plc, Kennedy Uzoka, said in spite of the current turbulence in the operating environment, occasioned by the global pandemic, the bank continued to record significant progress in our business segments.
He noted that the bank’s innovative financial inclusion propositions has helped it moderate cost-of-funds to 3.2 per cent , as low-cost deposits grew 40.8 per cent by the end of the third quarter.
According to him, the bank’s direct sales agents, agency banking network, and digital banking propositions have positioned it at the forefront of financial inclusion across geographies where it operates.
He pointed out that during the period under review, the Bank was able to provide support to customers across its footprint, assisting them to navigate the negative impact that Covid-19 pandemic has had on livelihoods, businesses and social life.
“Since March 2020, we have provided transaction fee waivers to customers, rescheduled loans where business cashflows have been impacted, and donated generously to governments and communities to help catalyse a comprehensive pan-African response to the fight against the COVID-19 Pandemic,” Uzoka said.
