United Bank for Africa (UBA) is reaping the rewards of a high-interest rate environment, with its net interest income soaring past ₦1 trillion, its highest in thirteen years.
According to the bank’s 2024 audited financial results filed with the Nigerian Exchange Limited (NGX), interest income rose 114.9% to ₦2.3 trillion, while interest expenses increased 128% to ₦839.2 billion due to the high-interest rate environment.
Higher Margins And Profit Before Tax
The UBA’s Executive Director of Finance & Risk Management, Ugo Nwaghodoh, noted that the bank’s net interest margin improved from 6.83% in 2023 to 9.02%.
Meanwhile, fee and commission income grew by 91.7%.
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Despite operating expenses rising 69%, profit before tax increased by 6.1% to ₦803.7 billion, supported by strong earnings from loans and foreign exchange gains.
Following the Central Bank of Nigeria’s (CBN) 850 basis points rate hike in 2024, UBA capitalised on higher interest rates.
Foreign currency revaluation gains surged to ₦293 billion from ₦26 billion, while e-banking income rose 88.2% to ₦236.3 billion, despite increased e-banking expenses.
International Expansion And Future Outlook
UBA’s after-tax profit grew 26.4% to ₦766.5 billion, with earnings per share (EPS) rising to ₦21.73.
The bank’s international operations now contribute 51.7% of group revenue, up from 31% in 2019.
Despite facing higher impairment charges and rising costs, UBA remains committed to long-term expansion and sustainable revenue generation, positioning itself for continued growth.
