United Bank for Africa Plc (NGX: UBA) has reported a profit of N449.30 billion for the nine months ended 30th September 2023.
A review of the financial statements showed that UBA grew its gross earnings by 115.2% to N1.31 trillion from N608.29 billion recorded in nine months in 2022 while the profit after tax increased by 287.2% to N449.30 billion from N116.04 billion in the same period in 2022. The earnings per share soared to N12.93 from N3.27
During the period, UBA reported “Net trading and foreign exchange income” of N450.25 billion out of which N339.96 billion was recorded as “Net Fair value gain on derivatives,” compared to a N22.61 billion in the nine months 2022.
Review of the Financial Statements
Income Statement:
- Interest Income: The bank’s net interest income increased by 58.6% to N666.29 billion from N420.23 billion.
- Net fee and commission income increased to N114.29 billion from N82.22 billion.
- Net trading and foreign exchange income jumped to N450.25 billion from N38.41 billion.
- Employee benefit expenses rose to N111.11 billion from 80.77 billion in nine months 2022.
- Other operating expenses also increased to N237.2 billion from N163.42 billion.
- Profit Before Income Tax: N502.09 billion, compared to N138.49 billion in 2022.
- Profit After Tax: N449.30 billion, compared to N116.04 billion profit in nine months 2022.
- Earnings Per Share: N12.93, compared to N3.27 in 2022
Balance Sheet:
- Total Assets: N16.24 trillion, compared to N10.86 trillion as at 31st December 2022. Of these assets, over N5.95 trillion is investment in securities, N4.94 trillion is loans and advances to customers, while N4.04 trillion is cash and bank balances.
- Total Liabilities: N14.46 trillion, compared to N9.935 trillion as at 31st December 2022. Deposits from customers accounted for most of the liabilities with N11.63 trillion.
- Shareholders’ Fund: stood at N1.72 billion, compared to N887.30 billion as at 31st December 2022.
- Retained earnings: N750.81 billion, against N429.53 billion as at 31st Dec. 2022.
Cashflow:
- Operating activities: net cash of N1.67 trillion was generated from operating activities, against N481.58 billion generated in 2022.
- Investing activities: net cash of N1.65 trillion was used in investing activities, against N48.52 billion generated from the same activity in 2022. UBA spent N4.32 trillion in purchasing investment securities (N875.40 billion in nine months 2022).
- Financing activities: net cash of N198.99 billion was used in financing activities, against N281.35 billion used in 2022.
- Cash and cash equivalents at the end of the period was N1.58 trillion.
About the Company
United Bank for Africa Plc is a Nigerian registered company incorporated on 23 February 1961 to take over the business of British and French Bank Limited (BFB).
UBA listed its shares on the Nigerian Stock Exchange (NSE) in 1970 and became the first Nigerian bank to subsequently undertake an Initial Public Offering (IPO).
The Bank’s registered address is at 57 Marina, Lagos, Nigeria.
The share price of UBA stood is 1.51% up at N20.15 on the floor of the Nigerian Exchange at the time of writing this report.
It has 34.19 billion outstanding ordinary shares and a market capitalization of N688.93 billion.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
