The United Bank for Africa Plc has released trading results for the first quarter of 2022 ending 31st March 2022.
In the result released to the Nigerian Exchange Limited, UBA increased profits after taxes by 8.76% in Q1’22 to N41.5 billion, reflecting the 14.1% increase in net interest income and the 26.8% improvement in non-interest revenue (NIR).
Specifically, the underlying earnings were propelled by the likely c.1.0ppt increase in asset yield as interest income grew by 15.2% to N125.1 billion. Likewise, NIR improved by 26.8% on the back of a 42.9% increase in trading revenues as income from fixed securities leapt 5-fold to N5.9 billion.
Downsides to the performance were the combined 20.5% increase in operating expenses and a more than 2-fold jump in impairment charges to N4.2biilion.
Consequently, cost to income and cost of risk rose by 1.3 ppt to 61.5% and 30bps to 0.5%, respectively.
UBA’s first-quarter result implied a drop in ROA to 1.5% (FY’21: 2.0%) and ROE to 17.1% (FY’21: 22.4%) following the expansion in total assets and equity bases. Elsewhere, the bank’s capital ratio fell 2.0ppt to 20.0% (FY’21: 22.0%).