How UBA Accumulated Over N70 Billion Profit in H1

By Tolulope Oke

United Bank for Africa’s (UBA) Profit after tax closed the first half at N70.3bn, up by 16.1 per cent compared to the N60.6bn of the same period in 2021.

The bank disclosed this in a statement on its audited financial results for the half year ended June 30, 2022.

It was noted that this was in spite of numerous business, economic, and geopolitical obstacles, such as the ongoing supply-chain disruptions caused by COVID-19, the conflict in Russia and Ukraine, and the subsequent increase in the price of commodities around the world that characterized the first half of the year.

The tier1 lender’s gross earnings rose by 17.8 per cent to N372.4bn from N316bn in the same period of 2021 financial year.

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Operating income also grew by 20.1 per cent to N256bn in the period, while the company’s profit before tax rose by 12.6 per cent to N85.7bn in the first half of 2022 from N76.2bn recorded in the same period of 2021.

An analysis of the bank’s half-year results, which were submitted to the Nigerian Exchange Group on Thursday, revealed that total assets kept growing, rising 5.4% to almost N9 trillion.

UBA extended loans to credit-worthy customers, with loans and advances increasing by four per cent to N3tn; while deposits rose by 7.9 per cent to N7.6tn at the end of the period.

The Group’s return on equity ended the period stronger at 17.7%% due to the significant double-digit growth in PAT compared to the slight reduction in shareholder’s fund, while return on assets increased to 1.6%, up nine basis points.