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HomeCapital MarketUBA Announces N40.6 billion first quarter PBT 

UBA Announces N40.6 billion first quarter PBT 

The United Bank for Africa (UBA) Plc has released its unaudited results for the first quarter ended March 31st, 2021, showing N40.6 billion Profit Before Tax (PBT). 

The bank also achieved impressive double-digit growth across  other income lines.

 

The bank leveraged on modest growth in both interest and non-interest income as well as increased efficiency.

The PBT was higher than N32.7 billion recorded in the first quarter of 2020.

 

Profit After Tax also grew by 26.8 per cent from N30.1 billion in March 2020 to N38.2 billion in the period under review. 

Interestingly, UBA again sustained its strong profitability recording an annualised 20.5 per cent Return on Average Equity (RoAE) compared to 19.9 per cent in the same period of 2020.

 

Driven by a year-on-year growth in interest income, UBA Group recorded another impressive 5.5 per cent per cent year-on-year growth in Gross Earnings to close at N155.4 billion for the three month period ending March 2021, compared to N147.2 billion recorded in the first three months of last year 2020.

 

The Group Managing Director/CEO of the United Bank for Africa (UBA) Plc, Kennedy Uzoka, expressed satisfaction with the Bank’s performance in the first quarter of 2021, stating that the result reflects UBA’s capacity to sustainably grow earnings even in a highly uncertain macroeconomic environment.

 

He added that the robust capital and liquidity positions have positioned the bank as it continues to support its customers across diverse sectors and markets, guided by prudent risk management practices.

 

“This impressive 2021Q1 results reflect the capacity of our business to sustainably grow earnings even in a highly uncertain macroeconomic environment. We remain upbeat on the macroeconomic outlook of the countries in which we operate, especially as the COVID-19 vaccine distribution gains traction globally, whilst commodity prices and currencies continue to stabilise. Our robust capital and liquidity positions have positioned us to continue to support our customers across diverse sectors and markets, guided by prudent risk management practices,” The GMD said. 

 

Further breaking down the figures, UBA’s Group Chief Finance Officer, Ugo Nwaghodoh, said, “I am particularly pleased with our annualised return on average equity of 20.5 per cent and return on average asset of two per cent, as these indices buttress our commitment to delivering sustainable value to our stakeholders. 

We continued to deploy our balance sheet efficiency and digital-led cost optimisation initiatives to achieve desired outcomes. Cost-to-income ratio improved by 200bps to 60.4 per cent during the period, whilst cost of funds settled at two per cent, a 130bps reduction from 3.3 per cent in 2020 first quarter.

 

 

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