United Bank for Africa Plc (UBA), a leading pan-African financial services group led by Nigerian businessman Tony Elumelu, reported a profit of N41.5 billion ($100 million) at the end of the first quarter of its 2022 fiscal year, demonstrating the resilience of the bank’s business model in the face of a slew of economic challenges.
According to a quarterly filing released on Wednesday, the bank’s profit increased by 8.8 percent in the first three months of 2022, from N38.2 billion ($92 million) in the first quarter of 2021 to N41.5 billion ($100 million) in the same period of 2022.
The increase in profit in the first quarter of 2022 was driven by an 18.3-percent increase in gross earnings revenue from N155.4 billion ($374.1 million) to N183.9 billion ($442.7 million), with its Nigerian operations accounting for 65 percent of the revenue and operations in other countries accounting for the remainder, demonstrating the bank’s diversification.
Kennedy Uzoka, the GMD/CEO of UBA, commented on the performance, stating that the company’s management implemented its strategy of digitizing operations and offerings, and, as a result, it has continued to record significant gains from its investments in technology.
He went on to say that the group’s strategy was successful, as evidenced by a 21-percent increase in income from electronic banking, which increased fees and commission to N42.1 billion ($101.34 million).
This financial performance puts the Elumelu-led financial services group in a strong position to increase earnings by the end of 2022, following a strong performance in 2021.
UBA is a Nigerian financial services conglomerate with operations in 20 African countries, as well as the UK, United States and France.
Elumelu, one of Africa’s most powerful businessmen, owns a sizable 6.39-percent stake in the company. From his stake in the pan-African bank, he derives a total fortune of about $45 million.
UBA’s profit increased by 8.7 percent in 2021, from N109.16 billion ($260.9 million) in 2020 to N118.68 billion ($283.6 million) in 2021.
Earnings growth in the single digits by the end of 2021 was supported by cost-effective management methods implemented during the year, as well as a seven-percent increase in gross earnings from N616.84 billion ($1.47 billion) to N660.22 billion ($1.58 billion).
