NIGERIA – The United Bank for Africa (UBA) Plc has announced that its profit after tax (PAT) increased by 26.8 percent in the first quarter (Q1) for the period ended March 31, 2021.

The bank’s PAT jumped to N23.2 billion (US$60.98m) in Q1 2021 from N30.1 billion (US$79.11m) in the same period in 2020.

According to a statement from the bank, it also recorded a double-digit growth across most of its major income lines in period under review.

The tier-1 bank said between January and March, it recorded N40.6 billion (US$106.71m), representing a 24 percent year-on-year growth in profit before tax compared with N32.7 billion (US$85.94m) recorded in the first quarter of 2020.

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

“Driven by a year-on-year growth in interest income, UBA Group recorded another impressive 5.5% percent year-on-year growth in Gross Earnings to close at N155.4 billion (US$408.43m) for the three month period ending March 2021, compared to N147.2 billion (US$386.88m) recorded in the first three months of last year 2020.

“This impressive 2021 Q1 results reflect the capacity of our business to sustainably grow earnings even in a highly uncertain macroeconomic environment.”

Kennedy Uzoka – Group managing director, UBA

“The bank’s total assets also rose by 2.5% to N7.9 trillion (US$20.76bn) in the period under review, compared to N7.7 trillion (US$20.24bn) recorded at the end of the 2020 financial year whilst shareholders’ funds grew to N762.4 billion (US$2bn) up by 5.3% from N724.1 billion (US$1.90bn) as at FY 2020.”

Reacting to the result, Kennedy Uzoka, group managing director of UBA, said the result reflects the bank’s capacity to grow earnings in a highly uncertain macroeconomic environment.

He expressed satisfaction with the bank’s performance, adding that its current capital and liquidity ratio have positioned the bank as it continues to support its customers across diverse sectors and markets, guided by prudent risk management practices.

Uzoka said the bank is committed to sustaining its performance through a customer driven approach for the rest of the year.

“This impressive 2021 Q1 results reflect the capacity of our business to sustainably grow earnings even in a highly uncertain macroeconomic environment,” he said.

“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 bank is making strong progress in Nigeria where our continuous market share and efficiency gains are translating into higher profits. We are committed to sustaining this strong start throughout the year, leveraging our customer-first (C-1st) philosophy and unparalleled execution to deliver even stronger returns to our esteemed shareholders in 2021 and beyond.”

Also commenting on the first quarter results, Ugo Nwaghodoh, UBA’s group chief finance officer, expressed confidence in the bank’s earning.