United Bank for Africa (UBA) had its January-to-March profit rise by more than one-quarter, helped by surges in both net interest income and non-interest income, the financial statement of the pan-African lender showed on Monday.
Net interest income stood at N74.4 billion relative to the N65.4 billion reported in the same period of last year.
Earnings also found support in a leap in fees and commission income by 23.8 per cent to N35 billion, more than one-third of that provided by electronic banking income alone.
UBA pruned the cash required to make up for loans that are likely to go bad from N2.3 billion to N1.2 billion, easing the weight of costs on its bottom line.
It said its cost-to-income ratio increased by 200 basis points to 60.4 per cent in the quarter under review.
Profit before tax climbed 24 per cent to N40.6 billion, while after-tax profit rose from N30.101 billion to N38.155 billion.
“We remain upbeat on the macroeconomic outlook of the countries in which we operate, especially as the COVID-19 vaccine distribution gains traction globally, whilst commodity prices and currencies continue to stabilise,” said Kennedy Uzoka, the chief executive.
“Our robust capital and liquidity positions have positioned us to continue to support our customers across diverse sectors and markets, guided by prudent risk management practices.”
Total assets grew from N7.698 trillion as of December 2020 to N7.892 trillion at the end of March.
Shares in UBA were quoted at N7.05 per unit at 14:16 West Africa Time in Lagos on Monday, trading up by 1.44 per cent.
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