UBA posts N53.58bn profit after tax in Q1 2023

United Bank for Africa Plc (NGX: UBA) has posted a profit after tax of N53.58bn for the first quarter period ended 31st March, 2023.

The interim consolidated financial statements of the bank seen by Investogist shows that there was a 29.1% growth in profit after tax and a 53.4% growth in interest income.

Also read; List of Dividends announced in 2023, qualification and payment dates

Review of the Financial Statements

Income Statement:

Interest Income: The bank’s net interest income increased to N191.87 billion from N125.07 billion, a 53.41% growth year-on-year. N75.59bn and N15.40bn of this income came from term loans and overdraft to corporate customers. Another bulk of this income came from investment securities; N22.90bn and N57.7bn from Treasury bills and Bonds respectively.
Fee and commission income increased to N52.19 billion in Q1 2023 from N42.10 billion in Q1 2022. The biggest component of this income came from account maintenance fee, which amounted to N20.92bn.
Net trading and foreign exchange income: The bank earned 26.10bn from this income segment (Q1 2022: N14.95bn). N13.41bn was from trading fixed income securities while N12.09bn was from foreign exchange trading.
Employee benefit expenses rose to N31.26 billion from N25.57 billion in Q1 2022.
Other operating expenses also increased to N69.37 billion from N46.32 billion.
Profit Before Income Tax: N61.37 billion, compared to N44.48 billion in Q1 2022.
Profit After Tax: N53.58 billion, compared to N41.49 billion in Q1 2022.
Earnings Per Share: N1.47, compared to 1.14 in Q1 2022.

Balance Sheet:

Total Assets: N11.36 trillion, compared to N10.85 trillion as at 31st December 2022. Of these assets, over N4 trillion is investment in securities, N3.30 trillion is loans and advances to customers, while N2.83 trillion is cash and bank balances.
Total Liabilities: N10.38 trillion, compared to N9.93 trillion as at 31st December 2022. Deposits from customers accounted for most of the liabilities with N8.64 trillion.
Shareholders’ Fund: stood at N973.17 billion, compared to N922.10 billion as at 31st December 2022.
Retained earnings: N479.94 billion, against N429.53bn as at 31st Dec. 2022.

Cashflow:

Operating activities: net cash of N154.88BN was used in operating activities, against N84.31bn used in preceding period.
Investing activities: net cash of N41.57 billion was generated from investing activities, against N46.84 billion generated in preceding period.
Financing activities: net cash of N10.05billion was used in financing activities, against N34.79 billion used in preceding period.
Cash and cash equivalents at the end of the period was N1.13 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).