UBA’s profitability rises 27% to N38bn in Q1’21

United Bank for Africa (UBA) Plc has recorded a 27 per cent increase in its Profit After Tax (PAT) to N38.16 billion in the first quarter of 2021 (Q1’21) from N30.10 billion in the corresponding period of 2020 (Q1’2020).

The Pan African bank group disclosed this in its Unaudited Financial Statement for Q1’21 released to the Nigerian Stock Exchange.

The double-digit growth in PAT follows a 24 per cent increase in Profit Before Tax (PBT) occasioned by a 14 per cent growth in Gross Earnings.

According to the bank, PBT rose by 24 per cent to N40.58 billion in Q1’21 from N32.72 billion in Q1’2020.

Gross Earnings (income) rose to N106. 65 billion in Q1’21 from N93.94 billion Q1’2020, indicating a 14 per cent increase. The growth in earnings was driven by a 14 per cent increase in Net Interest Income and a 13 per cent increase in Non-Interest Income. While Net Interest Income rose to N74.38 billion Q1’21 from N65.42 billion in Q1’2020, Non-Interest Income increased to N32.27 billion in Q1’21 from N28.53 billion Q1’2020.

READ ALSO: Zenith Bank shows resilience as gross earnings rise by 4% in Q3 2020The bank’s performance was further enhanced by a 23 per cent decline in  Net Impairment (losses to bad loans) which fell to N2.03 billion in Q1’21 from N2.64 billion in Q1’2020. Furthermore, was a 1.2 per cent increase in Customers’ Deposit to N7.78 trillion in Q1’21 from N7.69 trillion in Q1’2020, while Loans and Advances to Customers rose by 7.1 per cent to N2.73 trillion in Q1’21 from N2.55 trillion in Q1’2020.

The above improvements in key performance indicators among other things led to a 2.6 per cent growth in the Total Assets of the bank which rose to N7.89 trillion in Q1’21 from N7.69 trillion in Q1’2020.