According to the report filed with the Nigerian Stock Exchange (NSE) at the weekend, UBA reported a profit before tax of N90.4 billion compared to N98.2 billion recorded at the end of the third quarter of 2019. Similarly, the bank recorded an after-tax net profit of N77.1 billion, thus putting its annualised return on average equity at 16.4 per cent. Operating income also improved by 10.4 per cent year-on-year to close at N293.7 billion, up from N265.9 billion achieved in the corresponding period of 2019.
The report indicates that UBA benefitted largely from its technology-led initiatives targeted at improving customer experience over the past few years, as customer deposits leaped to N5.2trillion from N3.8 trillion at the end of the last financial year. The shareholders’ funds remained very strong at N655.3 billion, rising by 9.6 per cent from N598.0 billion recorded in December 2019, thus reflecting a strong capacity for internal capital generation and growth.
Commenting on the results, the Group Managing Director and Chief Executive Officer, Kennedy Uzoka, said: “In spite of the current turbulence in the operating environment, occasioned by the global pandemic, we have continued to record significant progress in our business segments. Notably, our innovative financial inclusion propositions have helped us moderate cost-of-funds to 3.2 per cent (4.0 percent in FY 2019), as low-cost deposits (which accounts for 76.2 per cent of our customer deposits) grew 40.8 per cent by the end of the third quarter.
