UBA Plc reported its 2023 Half-year results showing pre-tax profits grew by 370.73% year on year, reaching N403.647 billion.
Key highlights H1 2023 vs. H1 2022:
Gross earnings; N981.775 billion +163.66% YoY
Interest Income N428.292 billion +66.42% YoY
Interest Expense; N150.179 billion +87.96% YoY
Net interest income; N278.113 billion +56.72% YoY
Impairment charges for credit losses on Loans, N143.932 billion +1,123.39% YoY
Net interest income after impairment loss on Fin. Instrument, N124.169 billion -26.58% YoY
Net income on fees and commission N78.296 billion, +30.68% YoY.
Net Trading & Forex Gains N418.278 billion, +4,473.84 YoY
Other operating income N9.271 billion +1.37% YoY
Profit for the period N378.235 billion +437.76% YoY.
Loans and advances to customers N4.50 trillion +43.49%.
Cash and Balances N3.434 trillion +34.48%
Total Assets N15.382 trillion +41.67%.
Customers’ deposits N11.14 trillion +42.36%.
Insights
UBA’s significant growth in pre-tax profit can be attributed to the growth in net trading and forex gains primarily attributed to a substantial net fair value gain on derivative assets in H1 2023.
Also, the Bank reported a 66.42% growth in interest income generated from loans and advances extended to customers, which primarily contributed to the overall growth in the bank’s interest income
However, the bank experienced substantial growth in impairment charges for credit loss on loans, which surged by 1,123.39% YoY reaching N143.932 billion.