Banking: UBA Takes Lead With Impressive Performance

By Stephen Ubanna

In spite of the downturn in the nation and global economy which had forced many Financial Institutions both within and outside Nigeria’s shores gross earnings to significantly drop, the United Bank for Africa, UBA, plc, popular, Pan African Bank, has sustained its impressive performance that its competitors are wondering how the Bank is doing it.

The Competitors’ major worry was that why UBA plc, gross earnings have continued to grow or in lips and bounds just as its businesses are expandin Tony Elumelu, a multi-billionaire business mogul led bank, which many believe has hit the trillion naira bracket appears  to have continued  to grow in  its  yearly gross earnings and expand  over the years s because of its   strong risk management, Strong Information Communication Technology, ICT, Platform, experienced management team, multi-cultural , multilingual staff,   strong public sector reputation,   diverse customer base, extensive spread across Africa,  Large Balance Sheet Size and strong liquidity.

TElumelu: Chairman, UBA plc

. The impressive performance of the Money Deposit Bank, MDB, may have encouraged, Zenith ,Guaranty Trust Bank, GTB,  Access and First Bank of Nigeria, FBN, to wake up in order to meet the demand of their shareholders.

The impressive performance of the Pan African Bank, going by its recent annual Report, presented to the Nigerian Stock Exchange Limited, NGX, clearly shows that the bank already have a solid start to begin the 2024, financial year.     

 A document sighted by The Value News, shows that the Bank has continued to consolidate on its gains as its Gross Earnings profit, grew by 110% to hit the N156 billion mark in the first quarter of the 2024, Fiscal year, which was unexpected by the industry operators because of the situation of things in the country, thus showing a 65% growth rate.

A top official of the Bank who spoke to the online Magazine on condition of anonymity confirmed that the bank released financial results in the first quarter of this 2024, clearly shows ‘’a strong growth       across key performance measures’’.

Given an insider information, the source who disclosed that the Group’s financial results which were presented to the NGX, on Friday, May 3, 2024, saw an outstanding year –on-year increases? This is evident as the Bank’s Gross earnings   rose by 110%  from N271.1 billion  to N575.2 bn, interest  income grew  by 130% or NN440, bn.  The UBA, first quarter released financial reports to the NGX, also shows that it’s operating income increased by 115% from N173.7 bn, which was the situation in 2023 to N378.59 bn, described as very encouraging by financial analysts.

Many believe that the Pan African Bank, first quarter report has further shown the Group’s consolidated financial records performance delivered on its audited 2023, Financial records. The Group’s Profit   Before Tax, PBT, was said to have risen significantly by 155% from N61.7 bn in the first quarter of 2023, to N156.34 bn in the first quarter of the 2024, fiscal year. The MDB’s Profit   After Tax, PAT, was said to have also jumped astronomically from N53.5bn to a mouth- watering sum of N142.5 bn, representing a significant rise of 165%, on a year –on-year basis.

Oliver Alawuba, the Group Managing Director, GMD, of the Bank ,  who was said to have delivered the first quarter impressive performance result,  building on the solid momentum of 2023,  that had been created by the previous Management team    as well the ongoing  execution  of its long –held strategy  of customer focus, had said that’’ its geographic diversification  and effective Risk Management  and Governance , has helped to sustain the impressive financial records of the bank. 

Alawaba,  who could not his feelings had said that ‘’the Bank’s first quarter of 2024, PBT, was delivered with triple digit gross earnings growth, supported by a very strong interest and non-interest income from its operations’’, noting that the result reflects  the effect  of sizable  revaluation of the naira gains, arising from the unification of the Autonomous foreign exchange market, AFEM, and the parallel, popular , Black market exchange  rate, by President Bola Ahmed Tinubu, barely 24 hours , after assumption of office, in May 29, 2023.

The Pan African Bank revenue from   Fees and Commissions was said to have equally risen by 18%, year –on-year on ‘’the back of improved efficiencies and continued digital adoption’’. The UBA’s GMD,   had revealed that all the measures that have been adopted by the Bank in its operations over the years have helped drive the improvement in its efficiency and customer satisfaction, with the Group’s cost to income ratio held at 57.8%.

The bank’s impressive performance may have been fueled by its Large Balance Sheet Size which was said to have grown steadily with its   total assets increasing by 23% to N25.3 trillion. There are indications that the Customers deposits closed at  N18.4 trillion as at March 31, 2024, recording  a 23% increase  year-on-year  , which had been largely attributed ‘’to the growth in customers current and  saving accounts’’.     

The MDB’s presence in 20 African countries, United Kingdom, UK, France, , United Arab Emirates , UAE,  and being the only sub-Saharan African Continent Bank  with an operational Banking License  in the North American country of the United States of America, USA, means  doing business across border  payments  and remittances, trade finance and ancillary  banking  services  easy.

This may have informed why   Ugo Naghodoh, the Bank’s Executive Director , Finance and Risk Management  had said  that the Bank’s first quarter, 2024,  financial    results  ‘’highlights  its countless  customer  focus  and the strength of  the Bank’s  geographic   and product diversification, with good performance  across the African countries and four other Continents.

He  had said that the Bank will continue   to differentiate  itself from other competitors  across  all key  financial  metrics , with  a keen focus  on high –quality risk  adjusted revenues and cost  discipline  , while maintaining very sound  asset  quality.

The UBA Executive Director was said to have told those that cares to listen  that  Bank, will  remain committed  ‘’to reducing  both interest expense  and operating expenses  and making steady  progress in its business  as it moves through  the 2024 , Fiscal year , towards its  stated profitability targets.

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