UBA | United Bank For Africa Q1 2024 Quick Take : Interest and Fee Income growth drive strong profit growth

    UBA’s Q1 2024 unaudited numbers showed a strong 129.7% y/y growth in Interest Income to N440.8bn driven mainly by growth in Interest Income on Investment Securities, loans and on cash and bank balances. Net Loans to customers grew 39.5% in Q1 2024 compared with the December 2023 position, inclusive of the impact of devaluation on foreign currency loans. Interest Expense also grew strongly, up 93.9% y/y. Customer Deposits were up 23.4% in Q1 2024 compared with the December 2023 position. Overall, Net Interest Income was up 151.3% y/y to N300.7bn for Q1 2024 compared with N119.6bn for Q1 2023.

    Net Fee and Commission Income also grew strongly, up 114.6% y/y. The y/y growth was driven by growth in account maintenance fee (+74.9% y/y), funds transfer fees (+112.6%y/y), credit-related fees and commissions (+52.9% y/y), Remittance fee (+170.4% y/y) and commissions on transactional services (up 451.3% y/y). E-banking Income, which made up 39.0% of total Fees and Commission in Q1 2024 was up 111.9% y/y to N44.4bn but was wiped off by high e-banking expense of N45.7bn.


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