• Reports 40% Earnings Growth
• Total Assets Improve By 37.2%
• Customer Deposits Up 34%

The board of United Bank for Africa Plc, on Monday presented its audited financials for the half-year ended June 30, 2024, showing a significant 134.31% jump in interest income, the lifeblood of every bank. Proft After Tax, however declined by 16.35% to N316.36bn from N378.235bn in the same period of last year, translating to Earnings Per Share of N8.90, from the previous N10.95. The directors recommended an interim dividend per share of N2.00 to shareholders whose names appear on the register at the close of business on Monday, October 14, 2024, up 300% from the 50 kobo paid in the prior half-year. Payment of the dividend will be made electronically on October 22.

Highlights of the result presented through the Nigerian Exchange Limited, showed that Gross Earnings Income improved by 39.6%; total assets was up 37.2% and customer deposits, 34%

Specifically, gross earnings stood at N1.371tr from the previous N981.77bn, of which interest income for the period closed 134.3% better at N1.003tr from N428.292bn in the previous half-year. The number was driven by the N255.115bn income from investment treasury bills, up from N97.722bn; followed by N240.414bn, up from N125.732bn; among others. Interest expense grew from N150.179bn to N328.935bn, buoyed by expense on customder deposits of N204.491bn from N98.932bn; resulting in net interest income of N674.618bn from N278.113bn.

There was also an improvement in the group’s risk management capacity as shown in the significant drop in impairment charge for credit losses on loans from N143.912bn to N58.556bn; and net impairment charges on other financial assets to N1.656bn from N10.012bn. These left net interest income after impairment on financial instruments at N614.406bn from N124.169bn.

Fees and commission income improved to N250.616bn from N125.934bn, led by Electronic Banking Income of N106.15bn, up from N51.076bn; and fees and commission expense from N47.638bn to N105.519bn, with electronic banking expense pooling N83.15bn from N31.458b. Net fee and commission income stood at N145.097bn from N79.296bn.

There was a significant drop in net trading and foreign exchange gain from N418.278bn to N98.179bn, after net fair value loss on derivatives amounted to N311.099bn, compared to the previous N348.434bn gain; the effect of which was mitigated by the N326.182bn foreign currency revaluation gain, compared to N29.238bn; while forex trading income yielded N51.814bn from N15.17bn. Other operating income rose to N18.699bn from N9.271bn; net monetary loss on hyperinflation stood at N4.282bn.

Employee benefit expenses rose from N69.389bn to N133.86bn; depreciation and amortisation increased to N24.303bn from N16.117bn; and other operating expenses from N140.861bn to N312.359bn, with the AMCON cost taking N70.325bn from N40.917bn; ahead of the N47.852bn for fuel, repairs and maintenance, up from N15.013bn.

Profit before tax stood at N401.577bn from N403.647bn; income tax expense increased from N25.412bn to N85.217bn; resulting in net profit of N316.36bn from N378.235bn.

On the balance sheet, total assets grew to N28.337tr at the end of the 2024 half-year, from N20.653tr at the end of the full-year December 31, 2023; lifted by the N8.316tr cash and bank balances for the period, which increased from N6.069tr; while loans and advances to customers improved to N6.793tr from N5.228tr; among others.

Total liabilities for the period stood at N25.352tr from N18.623tr helped by the N20.09tr in customer deposits which improved from N14.891tr in the 2023 full-year.

A breakdown of the results showed that the group’s African operations (outside of Nigeria) accounted for the biggest chunk of profit before and after tax.

While the Nigerian bank contributed N742.41bn to total revenue from N716.747bn; followed by the rest of Africa with N702.058bn, compared to N248.157bn; and rest of the world, N107.226bn, compared to N48.206bn; the rest of Africa accounted for N207.034bn of net profit up from N75.039bn, ahead of N176.457bn from Nigeria which had last year posted N329.81bn; and N66.168bn from the rest of the world, an improvement from the previous half-year’s N22.813bn.

A breakdown according to operating segments showed that retail and commercial banking group raked in N820.474bn and N272.017bn of the 2024 half-year net profit, followed by N559.966bn and N228.445bnfrom treasury and financial markets, while corporate banking accounted for N302.306bn and N131.878bn. In the corresponding period of 2023, retail and commercial banking garnered N244.766bn and N62.675bn of profit; followed by N194.984bn and N62.675bn by Treasury and financial markets; while N193.591bn and N63.358bn came from corporate bank.