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Q3 2024: UBA Grows Net Interest Income By 149%, PBT Up By 20% To N603 Billion

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Riding on its recently released half-year financials, Africa’s Global Bank – United Bank for Africa (UBA) Plc, has announced its unaudited results for the third quarter ended September 30, 2024, where it recorded strong and impressive growth across all its key indicators.

As in the first two quarters of the current fiscal year, the bank’s gross earnings grew significantly by 83.2 per cent to N2.398 trillion up from N1.308 trillion recorded in September last year, while its net Interest income which stood at N443.0 billion at the end of the third quarter in 2023, rose impressively by 149 per cent to N1.103 trillion in the period under consideration.

The bank’s financial report filed with the Nigerian Exchange Limited on Monday also indicated a 20.2 per cent increase in Profit before Tax (PBT) to close at N603.48 billion compared to N502.09billion recorded at the end of the third quarter of 2023, while profit after tax also rose remarkably by 16.9 per cent from N449.26 billion recorded a year earlier to N525.31 billion in the period under review.

As in the preceding two quarters this year, UBA continues to maintain a very strong balance sheet, with Total Assets rising to N31.801 trillion, representing a 54.0 per cent increase over the N20.653 trillion recorded at the end of December 2023, just as the bank benefitted largely from its technology-led initiatives targeted at improving customer experience over the past few years, with Total Deposits rising to N26.50 trillion, representing a 52.7 per cent rise, up from N17.355 trillion at the end of the last financial year.

UBA shareholders’ funds remained very strong at N3.585 trillion up from N2.030 trillion recorded in December 2023, again reflecting a strong capacity for internal capital generation and growth.

Commenting on the result, UBA’s Group Managing Director/CEO, Mr. Oliver Alawuba, expressed pleasure that the Group continues to record strong and sustainable growth in its various revenue streams, building on its strong performance earlier in the year.

“The UBA Group achieved a profit before tax of N603.5 billion and our intermediation business continues to show strong growth with net interest income expanding by 149 per cent YoY to N1.10trillion and NIM closing at 8.03 per cent, which is 17.60 per cent above the 2023 position, despite persisting macroeconomic headwinds, geopolitical tensions, insecurity, inflationary pressure and exchange rate volatilities across our markets,” Alawuba stated.

According to the GMD, the Bank’s performance has been underpinned by consistent strong growth on all core and sustainable banking income lines, as he added that “Our substantial investments in technology are yielding tangible business value. This commitment is instrumental in delivering enhanced customer experiences and optimizing operational efficiency.”

The Bank’s Executive Director, Finance & Risk, Ugo Nwaghodoh, said, “I am delighted at the milestone reached in driving operational efficiency, reflected in cost-to-income ratio normalizing around the 50 per cent range. Shareholders’ funds recorded a 77 per cent growth from N2 trillion at FYE2023 to N3.59 trillion demonstrating the Group’s significant capacity for future growth.

On plans to consolidate its performance for the rest of the 2024 financial year and beyond, Nwaghodoh said, “We remain on track with various strategies to optimize our cost of funds and operating expenses. Furthermore, the Group has finalized plans to shore up its share capital to support its medium to long term aspirations, whilst aligning with the recent regulatory requirement in Nigeria and other jurisdictions.”

On plans to consolidate its performance for the rest of the 2024 financial year and beyond, Nwaghodoh said, “We remain on track with various strategies to optimize our cost of funds and operating expenses. Furthermore, the Group has finalized plans to shore up its share capital to support its medium to long term aspirations, whilst aligning with the recent regulatory requirement in Nigeria and other jurisdictions.”

He explained that UBA remains committed to sustainable growth in its core banking revenue lines and maintaining its strong compliance and risk management culture, even as the Group identifies further opportunities to expand.

United Bank for Africa Plc is a leading Pan-African financial institution, offering banking services to more than forty-five million customers, across 1,000 business offices and customer touch points in 20 African countries. With presence in New York, London, Paris and Dubai, UBA is connecting people and businesses across Africa through retail, commercial and corporate banking, innovative cross-border payments and remittances, trade finance and ancillary banking services.

 

 

 

 

 

 

 

 

 

 

 

 

BIG STORY

BREAKING: Bobrisky Transferred To FCID, Spent Night In Police Cell

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Controversial crossdresser, Okuneye Idris, otherwise known as Bobrisky, is currently in detention at the Force Criminal Investigation Department Annex, Alagbon, Lagos State, where he spent the night in a cell at the police facility.

A source confirmed the development, stating that further directives were being awaited regarding Okuneye’s case. He was taken to the FCID for safekeeping following his arrest by officials of the Nigeria Immigration Service during his attempt to exit the country through the Seme border.

“Bobrisky was brought to the FCID, Alagbon, around 10 p.m. on Monday. Immigration arrested him at Seme Boarder and brought him for safekeeping. “He is in detention at the FCID, Alagbon. He was arrested on Sunday, detained overnight, and taken to the FCID, Alagbon, around 10 pm on Monday. He is still at the FCID.”

Confirming Okuneye’s detention, the spokesperson for the FCID, Lagos, Mayegun Aminat, said, “He is detained at FCID Alagbon. He is with us and we are to get a remand to keep him in custody today.”

It was earlier reported that the spokesperson for the NIS, Kenneth Udo, described Okuneye as a person of interest over recent issues of public concern.

“In keeping with its commitment to securing the borders, Nigeria Immigration Service intercepted Okuneye Idris Olanrewaju, otherwise known as Bobrisky at the Seme Border over an attempt to exit the country. “He is undergoing interrogation and will be handed over to the appropriate authorities for further action. The Service assures the public that it will continue to be civil and professional in its statutory responsibility of manning the country’s borders,” Udo said.

 

More to come…

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BIG STORY

Road To 2027: Pro-Wike PDP Bigwigs Comb North For Makinde’s Running Mate

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There’s a new development in the Peoples Democratic Party (PDP) that suggests top leaders may be turning their backs on former Vice President Atiku Abubakar in favor of Oyo State Governor Seyi Makinde.

This move comes just a week after PDP governors brokered peace among party factions. Despite calls to maintain the status quo, Nyesom Wike’s loyalists on the PDP National Working Committee are now backing Makinde for the 2027 presidential election.

It appears that Wike and other party chieftains are still unhappy with Atiku’s candidacy, citing concerns about his ability to win and his handling of party dynamics.

The logic, according to multiple sources, is to truncate the ambition of Atiku and stop the party from conceding the ticket to the former VP, who they complained has become a ‘serial contestant.’

According to The Punch, some party chieftains who spoke under anonymity admitted that they were yet to forgive the former PDP presidential candidate for bungling their biggest chance to return to power in 2023.

Wike and Makinde, alongside Samuel Ortom, Ifeanyi Ugwuanyi and Okezie Ikpeazu, former governors of Benue, Enugu and Abia states respectively, had worked against Atiku’s election in 2023.

A few members of the NWC, who did not want to be identified, also felt Atiku was always seeking to experiment with the PDP and had not shown enough zeal to win it.

They also feared that he may no longer be a sellable candidate in 2027 because of his age, hence the need for a younger and more vibrant candidate like Makinde.

Makinde has openly declared that he is qualified to contest and would push for the 2027 presidential election agenda when the time is right.

The governor stated that “he is old enough to speak for himself on any issue without fear or intimidation,” adding that he would do so publicly if he had anything to say about his political future.

The governor also cautioned Nigerians against allowing the country to slide into a one-party state.

Efforts to get the reaction of the PDP National Publicity Secretary, Debo Ologunagba and the deputy spokesman, Abdullahi Ibrahim, were unsuccessful.

When contacted, Atiku’s Media Adviser, Paul Ibe, declined to comment on the intrigue.

But the former VP’s Special Assistant on Public Communication, Phrank Shaibu, said that they were not under any form of pressure over the choice of Makinde as was being speculated.

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BIG STORY

Air Peace Increases Lagos-Abuja Ticket To N200,000

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A one-way flight ticket from Lagos to Abuja on Air Peace is to hit N200,000 from November 1, 2024.

The current economic situation has been affecting the aviation business causing airlines to increase their fares amid lamentations from passengers.

This development has forced some Nigerians to abandon flights for road transport.

It was gathered that the airfares of airlines on Monday showed that Air Peace increased its fares to N200,000 from November, the highest among the domestic airlines.

While Air Peace has N200,000 and above on its website for a one-way trip between Lagos and Abuja, Aero is charging N94,000 to over N109,000; Arik Air has between N104,405 to N139,292; and Ibom Air ranges between N124,000 to over N133,000.

The high airfares have left many passengers stranded at airports in recent times, as they could not secure flights to their destinations.

The busiest routes, Lagos-Abuja and Abuja-Lagos, are more impacted as many passengers find it tough to secure seats.

An official of Air Peace who does not want her name in print confirmed the development, tying the increment to the present Nigeria’s worsening economic challenges.

“If you buy a ticket and see the breakdown, you will discover that we are bleeding as an aviation company and even the prices of running the business are almost getting out of control.

“Just as we all know, all these killing taxes go to the government, and businesses especially airlines have been left with no choice other than to do this, it is what it is.”

Also, efforts to get the Chief Operating Officer of the company, Toyin Olajide, were unfruitful as she ignored both calls and text messages of enquiry put across to her phone.

A businessman, Adeleke Aina, who told our correspondent that he has been travelling by air for years added that with the rates at which “airfares are skyrocketing by the day without any clear explanation other than economy this, economy that, I will be left with no other option than take road transport as my new meanings of movement.

“This is killing everything, fuel has turned into what it is and the Federal seems unconcerned with this abnormality. I fear for this country.”

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