United Bank for Africa Plc Q1’20 unaudited results – Higher net interest income buoys earnings

Must Read

How To Block Your Bank Account And SIM Card In Case Of Emergency

Losing your phone and wallet or having them stolen can be very frustrating. However, in case that happens to...

List of Access Bank Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number which usually identifies both the bank and the branch where an account is...

List of First Bank of Nigeria Sort Codes in Nigeria

The sort code is a number that usually identifies both the bank and the branch where an account is held. The sort...
- Advertisement -
CardinalStone Research
United Bank for Africa Plc recorded a 5.1% YoY increase in earnings to N30.1 billion in its unaudited Q1’20 result. The growth in earnings was propelled by higher operating income (+12.2% YoY) which offset the increases in impairment charges (+53.1% YoY) and operating expenses (+12.9% YoY).
Highlights:
  • Interest income rose 10.7% YoY, supported largely by higher interest income from loans and advances (+25.0% YoY). The growth in lending based interest income likely relates to the 9.3% increase in gross loans and advances to customers during the quarter. Overall, net interest income increased by 12.6% YoY
  • Non-interest revenue (NIR) rose 11.3% YoY to N28.5 billion in the quarter. Key drivers were 11.6% YoY increase in net fees and commission income and a 48.9% YoY growth in net trading gains. Growth in fee-based income was largely supported by credit (+44.3% YoY) and transaction (+31.8% YoY) related fees; whereas, the increase in net gains mostly reflected much lower derivative losses during the quarter (Q1’20: N10 million; Q1’19: N5.7 billion)
  • Operating expenses climbed 12.9% YoY, nonetheless, the cost-to-income ratio was relatively flat at 62.4% (vs. Q1’19: 62.1%). Personnel expenses (+21.5% YoY) was the notable driver of operating costs during the period. On the other hand, the cost of risk moderated to 0.4% from 0.8% in December 2019 despite the 53.1% YoY increase in loan loss provisions
  • Annualised ROE was 19.9% (December 2019: 16.2%). Gross loans rose 9.3% while deposits from customers rose 11.5% during the quarter.
Read Also:  Amazon to help local retailers grow their businesses online

United Bank for Africa Plc Q1'20 unaudited results - Higher net interest income buoys earnings - Brand Spur

Please click here for the full result.

- Advertisement -
United Bank for Africa Plc Q1'20 unaudited results - Higher net interest income buoys earnings - Brand SpurUnited Bank for Africa Plc Q1'20 unaudited results - Higher net interest income buoys earnings - Brand Spur
- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

United Bank for Africa Plc Q1'20 unaudited results - Higher net interest income buoys earnings - Brand SpurUnited Bank for Africa Plc Q1'20 unaudited results - Higher net interest income buoys earnings - Brand Spur

Latest News

Borderless Work: Avon HMO Partners With HR Expo Africa

Recognizing staff wellbeing as a bedrock of organizational performance, Avon HMO was a proud partner at the just concluded...
- Advertisement -
BrandsPur Weekly Cartoons
- Advertisement -United Bank for Africa Plc Q1'20 unaudited results - Higher net interest income buoys earnings - Brand SpurUnited Bank for Africa Plc Q1'20 unaudited results - Higher net interest income buoys earnings - Brand Spur