UBA’s FY 2023 audited numbers showed a strong 93.0% y/y growth in Interest Income to N1.1tn driven mainly by growth in Interest Income on Investment Securities, loans and on cash and bank balances. Net Loans to customers grew 66.7% in 2023 compared to December 2022, inclusive of the impact of devaluation on foreign currency loans. Interest Expense also grew strongly, up 107.0% y/y bringing cost of funds up to 2.65% in December 2023 from 2.18% in December 2022. Customer Deposits were up 90.3% in December 2023 compared with December 2022. Overall, Net Interest Income was up 86.4% y/y to N707.5bn for FY 2023 compared with N379.5bn for FY 2022 while Net Interest Margin (NIM) settled at 6.83% from 5.91% for FY 2022.
Net Fee and Commission Income also grew strongly, up 47.4% y/y and 20.1% above our forecast. The y/y growth was driven by growth in commission on turnover (+122.1% y/y), funds transfer fees (+122.1%y/y), credit-related fees and commissions (+26.7% y/y), Remittance fee (+96.8% y/y) and commissions on transactional services (up 91.3% y/y). E-banking Income, which made up 40.9% of total Fees and Commission in FY 2023 was up 59.1% y/y to N125.6bn, but as has been the case in recent times, was capped by high e-banking expense of N101.8bn, thus resulting in a balance of only N23.7bn for net e-banking income.
