UBA’s H1 2023 audited numbers showed a strong 66.4% y/y growth in Interest Income to N428.3bn driven mainly by a significant growth in Interest Income on Investment Securities and on cash and bank balances. Net Loans to customers grew 43.5% in H1 compared to December 2022, inclusive of the impact of devaluation on foreign currency loans. Interest Expense also grew strongly, up 88.0% y/y on the back of a 237% y/y growth in Interest Expense on deposits from banks, 80% y/y growth on Interest Expense on Customer Deposits, and a 49% y/y growth in Interest Expense on borrowings. Customer Deposits were up 42.4% in June compared with December 2022. Overall, Net Interest Income was up 56.7% y/y to N278.1bn in June 2023 from N177.5bn in June 2022 and up 32.5% q/q to N158.5bn in Q2 2023 from N119.6bn in Q1 2023.
Net Fee and Commission Income also grew strongly, up 30.7% y/y and 70.2% q/q. The y/y growth was driven by growth in account maintenance (+46.1% y/y), funds transfer fees (+84.4y/y), and commissions on transactional services (up 198.9% y/y). E- banking Income, which made up 40.6% of Fees and Commission in H1 2023 was up 40.6% y/y to N51.1bn, but again capped by high e-banking expense of N41.5bn, thus resulting in a balance of only N9.6bn for net e-banking income.