UBA's FY 2021 AUDITED numbers showed a moderate 10.8% y/y growth in Interest Income to N474.3bn (Net loans to customers grew 4.9% y/y). Interest Expense, on the other hand, was down 6.4% y/y but was up 8.1% q/q. The q/q growth reflects the gradual increase in funding costs through 2021. Overall, cost of funds was down to 2.2% in FY 2021 compared with 2.9% in 2020. Customer Deposits were up 12.2% y/y. Net Interest Income was up 22.1% y/y to N316.1bn in December 2021 from N259.5bn in December 2020, broadly in line with our estimates.
