UBA’s retained earnings surpass N1 trillion, with the group reporting a pre-tax profit of N156.3 billion in Q1 2024

UBA has released its unaudited financial statements for Q1 2024, with the group posting a pre-tax profit of N156.3 billion, marking a 155% year-on-year increase from the N61.4 billion posted in Q1 2023.

The group also reported a net income of N142.6 billion during the quarter, representing a staggering 166% year-on-year growth from the N53.6 billion posted in the corresponding quarter of the previous year.

The surge in net income bolstered the group’s retained earnings, propelling them to N1.055 trillion in the quarter, positioning UBA as the sole Nigerian company to achieve retained earnings surpassing N1 trillion Naira.

During the quarter, UBA’s net interest income grew by 151% year-on-year to N300.7 billion from N119.6 billion in Q1 2023, as the bank continued to enjoy improved earnings due to the high interest rate monetary environment in Nigeria.

Key Highlights (Q1 2024 vs Q1 2023)

Net interest income: N300.7 billion, +151% YoY
Total non-interest income: N77.9 billion, +39% YoY
Operating income: N378.6 billion, +115% YoY
Net operating income after impairment loss: N375.3 billion, +122.5% YoY
Total operating expenses: N219 billion, +104% YoY
Profit before income tax: N156.3 billion, +1547% YoY
Profit for the period: N142.6 billion, +166% YoY
Earnings per share: N3.96, +169% YoY
Total assets: N25.4 billion, +23% YTD
Cash and bank balances: N7.7 trillion, +28% YTD
Loans and advances to banks and customers: N7.5 billion, +34% YTD
Commentary
During the quarter, UBA’s income from FX trading reached N23.7 billion, marking a 96% year-on-year increase from the N12.1 billion posted in Q1 2023. Additionally, the group recorded an FX revaluation gain of N3.9 billion.

Regarding operating expenses, there was a noticeable increase in wages and salaries. Throughout the quarter, the group’s expenditures on wages and salaries totaled N64.3 billion, representing a 111% year-on-year growth from the N30.4 billion posted in Q1 2023.

Furthermore, the group’s expenditure on fuel, repairs, and maintenance reached N33.2 billion, marking a 137% year-on-year increase from the N14 billion posted in the corresponding quarter of the previous year.

With its minimum paid-up capital at N115.8 billion, UBA needs to raise at least N384.2 billion to meet its N500 billion minimum capital requirement. In the light of this, the group is preparing to issue 10.8 billion new shares, aiming to increase its share capital from N17.099 billion to N22.5 billion.