United Bank for Africa experienced a 20.2% rise in pre-tax profit, reaching 603.48 billion naira (about $422 million) in the first nine months of 2024. This growth was driven by strong interest income and robust balance sheet expansion.

United Bank for Africa (UBA), led by Nigerian billionaire Tony Elumelu, reported a 20.2% increase in pre-tax profit for the first nine months of 2024. The profit reached 603.48 billion naira (about $422 million), up from 502.09 billion naira during the same period in 2023. This growth stems from strong interest income and increased customer deposits, despite losses linked to currency fluctuations.

UBA opted to present its results in naira, a currency that has sharply depreciated against the dollar in 2024. Consequently, the bank's performance in dollars would have been significantly less impressive, given its operations in 20 different markets.

In naira terms, UBA's gross revenue soared by 83.2% to 2.398 trillion naira (around $1.68 billion) by the end of the third quarter, compared to 1.308 trillion naira in September 2023. Net interest income rose by 149%, jumping from 443 billion to 1.103 trillion naira. This growth was fueled by increased lending to customers and investments in securities, even as interest expenses rose due to a 52.7% increase in deposits, now totaling 26.5 trillion naira (around $18.53 billion).

Despite rising expenses, UBA maintained a strong increase in net interest income and diversified its non-interest income, seeing positive results in commission and trading activities. The bank's total assets also expanded significantly, surpassing 31.801 trillion naira (about $22.24 billion), a 54% increase from 20.653 trillion naira at the end of the 2023 fiscal year. UBA also strengthened its equity, which grew from 2.03 trillion naira to 3.585 trillion naira, marking a 77% rise.

However, the bank faced foreign exchange losses amounting to 74.8 billion naira. Despite these challenges, the management remains optimistic about future growth. Oliver Alawuba, the group’s CEO, emphasized the bank's resilience amid macroeconomic and geopolitical tensions, inflationary pressures, and currency volatility, especially in Nigeria, its largest market.

In recent years, UBA has invested heavily in technology to enhance customer experience and improve operational efficiency. Ugo Nwaghodoh, the executive director in charge of finance and risk, noted that the cost-to-income ratio has stabilized around 50%. With 45 million customers across 20 African countries and offices in New York, London, Paris, and Dubai, the bank plans to continue optimizing costs and strengthening its capital to support its long-term ambitions. UBA has already announced plans to increase its capital by 45%, which will be open to public shareholders.

Note: All dollar conversions in this article are based on the average exchange rate for 2024, estimated at approximately 1 USD = 1,430 NGN.