United Bank for Africa PLC (UBA) Q3-2020 earnings shows an impressive topline as gross revenue advanced by 9.03% majorly driven by 6.46% increase in interest income despite the drag in fees and commission income.
Specifically, UBA interest income advanced from N297.90bn to N317.14bn followed by a 5.66% reduction in interest expenses. Consequently, net interest income advanced by 17.06% to N186.02bn amid increasing impairment charges. A 72.23% increase in impairment charges pressure down net interest income after impairment to N174.55.
Higher cost put pressure on bottom-line performance.
Income from fees and commission declined by 11.14% arising from lower-income from credit-related fees and commission despite increase trade transactions income. A 19.20% increase in operating expenses also reduced Profit Before Tax by 8.00% down to N90.37bn.
Consequently, UBA’s profit after tax declined by N5.52 to N77.13 compared to the N81.63bn in Q3-2019. In summary, Earnings per share declined by 6.90% to N2.16 in the current period.