New Release | October 30, 2023

Unaudited Results for the Third Quarter Ended September 30, 2023

UBA's Q3 Gross Earnings grows 115% YoY and PBT grows 263% YoY to N502.1bn

Statement of Comprehensive Income

Q3'2023

Q3'2022

Change

₦' Million

₦' Million

Gross earnings

1,308,861

608,289

115.2%

Interest income

666,291

420,234

58.6%

Net-interest income

443,082

282,513

56.8%

Non-interest income

574,539

131,884

335.6%

Operating income

1,017,621

414,397

145.6%

Operating expenses

370,914

262,628

41.2%

Profit before tax

502,091

138,493

262.5%

Profit after tax

449,296

116,042

287.2%

Basic EPS

12.93

3.27

295.0%

Statement of Financial Position

Q3'2023

YE'2022

Change

₦' Million

₦' Million

Total assets

16,235,995

10,857,571

49.5%

Net loans

5,065,127

3,440,128

47.2%

Customer deposits

11,629,182

7,824,892

48.6%

Shareholders' funds

1,778,132

922,104

92.8%

NPL Ratio

3.61%

3.10%

16.5%

Profitability Metrics

Q3'2023

Q3'2022

Change

1)

Cost-to-income ratio (CIR)

36.44%

63.21%

-42.4%

2)

Cost-of-risk (CoR)

4.07%

0.68%

498.7%

3)

Cost-of-fund (CoF)

2.52%

2.33%

8.1%

4)

Net interest margin (NIM)

6.19%

5.89%

5.2%

5)

NPL Coverage Ratio*

131.45%

115.60%

13.7%

6)

Return on average equity (RoAE)*

44.37%

19.72%

131.3%

7)

Return on average asset (RoA)*

4.42%

1.76%

155.2%

* Metrics based on Q3'2023 Vs FY'2022

www.ubagroup.com | Africa, USA, UK, France, UAE

Africa's Global Bank

Commenting on the result, UBA's Group Managing Director/ Chief Executive Officer, Mr. Oliver Alawuba said:

"I am pleased to present UBA Group's results for the quarter ended 30 September 2023, which show a strong and sustainable improvement in key performance metrics over the period. The Group recorded robust double-digit growth in its top line, with gross earnings rising YoY by 115% to ₦1.3 trillion in September 2023.

Despite the high inflationary and challenging global environment, the Group was able to leverage the rising interest rates environment in our markets and improved digital offerings, in growing funded and non-funded income. I am particularly excited by the 263% YoY growth in profit before tax, which has helped to drive increased returns to shareholders, with a 44.4% RoAE, compared to 19.7% achieved as at December 2022.

We continued to record improved gains in our customer acquisition and retention strategies across our countries of presence, evident in the 48.6% growth in customer deposits to ₦11.6 trillion from ₦7.8 trillion at the end of 2022FY. This enabled the Group drive loan growth and interest income, with net loans and advances at ₦5.07 trillion, representing a year-to-date (YTD) increase of 47.2%.

For 2023, we remain committed to improving the Group's performance, as we strategically position to take advantage of emerging opportunities, in our 24 countries of operation and across the globe. We will continue to deliver excellent rewards to our stakeholders.

Also speaking on the performance, Executive Director Finance and Risk, Ugo Nwaghodoh said:

"The continued impressive performance of the UBA Group in the third quarter of 2023 is founded on our continuous improvement and growth in gross earnings and balance sheet size, as gross earnings grew by 115% year-on-year to ₦1.3 trillion and total assets up by 49% to ₦16.2 trillion from ₦10.9 trillion as at December 2022. The growth in gross earnings is driven by 56.8% growth in net interest income and 3.36x growth in non-interest revenue. The material increases in net interest income was on the back of 47.6% expansion in the bank's interest earning assets.

The performance demonstrates our Group's resilience and commitment towards delivering value and enhancing the confidence of its customers, stakeholders and the wider public, notwithstanding the competitive landscape and current global trend in the industry."

www.ubagroup.com | Africa, USA, UK, France, UAE

Africa's Global Bank

Condensed Consolidated Statements of Comprehensive Income

Group

9 months to

In millions of Nigerian Naira

Sep. 2023

Sep. 2022

Interest income

666,291

420,234

Interest income on amortised cost and FVOCI securities

665,478

419,634

Interest income on FVTPL securities

813

600

Interest expense

(223,209)

(137,721)

Net interest income

443,082

282,513

Fees and commission income

182,317

138,079

Fees and commission expense

(68,031)

(55,860)

Net fee and commission income

114,286

82,219

Net trading and foreign exchange income

450,253

38,409

Other operating income

10,000

11,256

Total non-interest income

574,539

131,884

Operating income

1,017,621

414,397

Net impairment charge on loans and receivables

(144,616)

(13,587)

Net operating income after impairment loss on loans and

873,005

400,810

receivables

Employee benefit expenses

(111,107)

(80,769)

Depreciation and amortisation

(22,611)

(18,438)

Other operating expenses

(237,196)

(163,421)

Total operating expenses

(370,914)

(262,628)

Share of profit of equity-accounted investee

-

311

Profit before income tax

502,091

138,493

Income tax expense

(52,795)

(22,451)

Profit for the period

449,296

116,042

Other comprehensive income

Items that will be reclassified to income statement:

Exchange differences on translation of foreign operations

276,129

(56,311)

Fair value changes on investments at fair value through other

comprehensive income(FVOCI):

Net fair value gains/(loss) during the period

19,610

(16,915)

Net amount transferred to the income statement

(2,771)

(551)

292,968

(73,777)

Items that will not be reclassified to the income statement:

Fair value changes on equity investments at FVOCI

144,544

(8,510)

144,544

(8,510)

Other comprehensive income, net of tax

437,512

(82,287)

Total comprehensive income for the period

886,808

33,755

Profit attributable to:

Owners of Parent

442,029

111,903

Non-controlling interest

7,267

4,139

Profit for the period

449,296

116,042

Total comprehensive income attributable to:

Owners of Parent

863,830

33,053

Non-controlling interest

22,978

702

Total comprehensive income for the period

886,808

33,755

Basic and diluted earnings per share expressed in Naira

12.93

3.27

The statement of financial position, statement of comprehensive income, statement of changes in equity, report of the independent auditor and specific disclosures are published in compliance with the requirements of S.27 of the Banks and Other Financial Institutions

Consolidated Statements of Financial Position

Group

As at

Sep. 2023

Dec. 2022

In millions of Nigerian Naira

ASSETS

Cash and bank balances

4,039,002

2,553,629

Financial assets at fair value through profit or loss

6,308

14,963

Assets under management

13,400

12,923

Derivative assets

382,342

39,830

Loans and advances to banks

126,476

303,249

Loans and advances to customers

4,938,651

3,136,879

Investment securities:

- At fair value through other comprehensive income

2,825,196

2,193,253

- At amortised cost

3,127,600

1,987,438

Other assets

480,222

254,704

Investments in subsidiaries

-

-

Property and equipment

219,142

208,039

Intangible assets

35,488

33,468

Deferred tax assets

28,793

23,603

16,222,620

10,761,978

Non-Current Assets Held for Sale

13,375

95,593

TOTAL ASSETS

16,235,995

10,857,571

LIABILITIES

Deposits from banks

1,762,462

1,170,238

Deposits from customers

11,629,182

7,824,891

Derivative liabilities

2,634

79

Other liabilities

378,884

383,284

Current income tax liabilities

41,811

20,281

Borrowings

637,166

535,735

Deferred tax liabilities

5,724

959

TOTAL LIABILITIES

14,457,863

9,935,467

EQUITY

Share capital

17,100

17,100

Share premium

98,715

98,715

Retained earnings

750,812

429,533

Other reserves

857,666

341,949

EQUITY ATTRIBUTABLE TO OWNERS

1,724,293

887,297

OF THE PARENT

Non-controlling interests

53,839

34,807

TOTAL EQUITY

1,778,132

922,104

TOTAL LIABILITIES AND EQUITY

16,235,995

10,857,571

The consolidated and separate financial statements were approved by the Board of Directors on October 27, 2023 and signed on its behalf by:

ED, Finance and Risk

Chairman, Board of Directors

Group Managing Director/CEO

FRC/2012/ICAN/00000000272

FRC/2022/PRO/DIR/003/589226

FRC/2013/CIBN/00000002590

The statement of financial position, statement of comprehensive income, statement of changes in equity, report of the independent auditor and specific disclosures are published in compliance with the requirements of S.27 of the Banks and Other Financial Institutions

About UBA

United Bank for Africa Plc is a leading Pan-African financial institution, offering banking services to more than twenty-five (25) 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.

Editor's comment

Caution regarding forward-looking statements

From time to time, the Bank makes written and/or oral forward-looking statements in press releases and other communications. In addition, representatives of the Bank may make forward-looking statements to analysts, investors, the media and others. All such statements are intended to be forward looking statements. Forward looking statements include, but are not limited to, statements regarding the Bank's objectives and priorities for 2023 and beyond as well as strategies to achieve them, and the Bank's anticipated financial performance. Forward looking statements are typically identified by words such as "will", "should", "believe", "expect", "anticipate", "intend", "estimate", "may" and "could".

By their very nature, these statements require the Bank to make assumptions and are subject to inherent risks and uncertainties, general and specific. Especially in light of the uncertainty related to the financial, economic and regulatory environments, such risks and uncertainties - many of which are beyond the Bank's control and the effects of which are difficult to predict - may cause actual results to differ materially from the expectations expressed in the forward-looking statements. Risk factors that could cause such differences include: credit, market (including equity, commodity, foreign exchange, and interest rate), liquidity, operational, reputational, insurance, strategic, regulatory, legal, environmental, and other risks. All such factors should be considered carefully, as well as other uncertainties and potential events, and the inherent uncertainty of forward-looking statements, when making decisions with respect to the Bank and we caution readers not to place undue reliance on the Bank's forward-looking statements.

Any forward-looking statements contained in this press release represent the views of management, only as of the date hereof and are presented for the purpose of assisting the Bank's investors and analysts in understanding the Bank's financial position, objectives and priorities and anticipated financial performance as at and for the periods ended on the dates presented and may not be appropriate for other purposes. The Bank does not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by or on its behalf, except as required under applicable securities legislation.

For further information, please contact: UBA Investor Relations Team +234-1-280-8349

investorrelations@ubagroup.com

The statement of financial position, statement of comprehensive income, statement of changes in equity, report of the independent auditor and specific disclosures are published in compliance with the requirements of S.27 of the Banks and Other Financial Institutions

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United Bank for Africa plc published this content on 30 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 October 2023 19:13:50 UTC.