How Tony Elumelu’s UBA Earned $265.6 Million in 9 Months 2022

The pan-African financial service group UBA has shown its financial statements, and the bank is on track to deliver another strong performance this year. The bank, founded by Tony Elumelu, earned $265.66 million (N116.04 billion)  in the first nine months of 2022.

The group’s profits climbed by over 11% during the time under review, from $239.5 million (N104.6 billion), 265.66 million (N116.04 billion), according to data from its most recent financial statement for the first nine months of 2022, which was recently published.

UBA is one of the top financial services conglomerates in Nigeria. Its significant pan-African and international activities in 24 nations and on four continents, including the UK, the US, France, and most recently the United Arab Emirates, place it among the largest banks on the continent.

Tony Elumelu, a prominent businessman in Africa, holds a sizeable 6.39 percent investment in the financial services company. Currently, his stake in the pan-African bank is worth roughly $45 million.

The bank now has Oliver Alawuba as CEO after Kennedy Uzoka left the role in August.

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A review of UBA’s 2021 earnings 

According to data from the group’s most recent financial statement for the first nine months of 2022, its profits climbed over the period under review by about 11%, from $239.5 million (N104.6 billion) to $265.66 million (N116.04 billion).

The Nigerian lender is well-positioned to surpass the $283.6 million (N118.68 billion) total profit it reported at the end of 2021, when its gross earnings increased by seven percent, from $1.47 billion (N616.84 billion) to $1.58 billion (N660.22 billion). This is due to the lender’s robust earnings growth.

The bank’s strong performance throughout its operating areas, which was in line with expectations, may be credited for the double-digit increase in earnings. The group’s gross earnings climbed by more than 10%, primarily due to double-digit growth in net interest and non-interest income.

According to the group, it will keep using its large base of clients and business activities to further its goal of giving stakeholders exceptional value, as shown by a rise in low-cost customer deposits and a significant expansion of the payments and transaction banking sectors.

Due to its solid financial performance, its assets increased by over 9% in the first nine months of 2022, rising from $19.5 billion (N8.541 trillion) at the beginning of the year to $21.3 billion (N9.319 trillion) as of September 30, while retained earnings increased by over $927.2 million (N405 billion).

UBA yearly expenses 

Compared to N123.2 billion a year earlier, UBA devoted N163.4 billion to other operating costs. The biggest stressor, in this case, was the expenditures on fuel, repairs, and maintenance, which not only made up the largest portion of this cost category but also rose 78.6% annually.

While net profit increased to N116 billion from N104.6 billion, pre-tax profit increased 12.3% to N138.5 billion.

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