Business
UBA Achieves Milestone as Retained Earnings Surpass N1 Trillion Mark in Q1 2024
UBA Achieves Milestone as Retained Earnings Surpass N1 Trillion Mark in Q1 2024
United Bank for Africa (UBA) has recently unveiled its unaudited financial results for the first quarter of 2024, showcasing an impressive performance that has set a new benchmark in the Nigerian financial landscape. The group’s stellar performance in Q1 2024 has not only demonstrated robust growth but has also positioned UBA as a trailblazer in the industry, with its retained earnings crossing the remarkable milestone of N1 trillion.
Financial Performance Overview:
In a standout achievement, UBA reported a pre-tax profit of N156.3 billion in Q1 2024, marking a substantial 155% increase compared to the same period in 2023 when the figure stood at N61.4 billion. This exceptional growth trajectory was further underscored by a net income of N142.6 billion, reflecting a remarkable 166% surge from the previous year’s N53.6 billion.
The surge in net income played a pivotal role in bolstering the group’s retained earnings, which soared to an impressive N1.055 trillion during the quarter. This significant feat solidifies UBA’s position as the first Nigerian company to achieve retained earnings exceeding the N1 trillion mark, underscoring its financial strength and stability.
Key Financial Metrics:
The financial highlights for Q1 2024 versus Q1 2023 paint a picture of UBA’s exceptional performance and growth trajectory:
– Net interest income surged by 151% year-on-year to reach N300.7 billion.
– Total non-interest income saw a 39% year-on-year increase, amounting to N77.9 billion.
– Operating income witnessed a substantial growth of 115% year-on-year, reaching N378.6 billion.
– Net operating income after impairment loss increased by 122.5% year-on-year to N375.3 billion.
– Total operating expenses rose by 104% year-on-year, totaling N219 billion.
– Profit before income tax experienced a staggering 1547% year-on-year growth, amounting to N156.3 billion.
– Earnings per share surged by 169% year-on-year to N3.96.
Moreover, the group’s total assets stood at N25.4 billion, reflecting a 23% year-to-date increase. Cash and bank balances reached N7.7 trillion, marking a 28% year-to-date growth, while loans and advances to banks and customers amounted to N7.5 billion, showing a 34% year-to-date increase.
Operational Insights:
UBA’s income from FX trading soared to N23.7 billion in Q1 2024, representing a substantial 96% year-on-year increase. Additionally, the group recorded an FX revaluation gain of N3.9 billion during the quarter, further enhancing its financial performance.
However, it is noteworthy that operating expenses witnessed a significant uptick, particularly in wages and salaries, which totaled N64.3 billion, indicating a substantial 111% year-on-year increase. Expenditure on fuel, repairs, and maintenance also surged to N33.2 billion, marking a notable 137% year-on-year growth.
**Capital Adequacy and Future Plans:**
With a minimum paid-up capital of N115.8 billion, UBA is gearing up to raise at least N384.2 billion to meet the N500 billion minimum capital requirement. To achieve this, the group is set to issue 10.8 billion new shares, aiming to increase its share capital from N17.099 billion to N22.5 billion, demonstrating its commitment to regulatory compliance and sustainable growth.
Conclusion:
UBA’s outstanding performance in Q1 2024 underscores its resilience, strategic focus, and commitment to delivering value to its stakeholders. The group’s achievement of surpassing N1 trillion in retained earnings sets a new standard in the Nigerian financial sector and reinforces its position as a market leader. As UBA continues to chart a path of sustainable growth and innovation, it remains poised to navigate challenges and capitalize on opportunities, driving value creation and economic development.
In conclusion, UBA’s Q1 2024 financial results not only reflect its financial prowess but also exemplify its unwavering dedication to excellence and long-term sustainability in the ever-evolving financial landscape
