The United Bank for Africa (UBA) Plc has reported a drop of 6 percent Year-on-Year in its recently released unaudited consolidated financial statement for the nine months ended September 2020.
The result shows a Profit after Tax (PAT) of N77.1 billion from the N81.6 billion recorded in the same period of 2019.
The report revealed that the drop in the bank’s PAT for the first nine months of 2020 was an indirect consequent of 72 percent and the 19 percent rise in credit impairment charges and operating expenses, respectively.
UBA’s net interest income increased by 17 percent Year on Year to N186 billion from N158.9 billion in the corresponding period of 2019 while interest income grew by 6 percent Year on Year as interest expenses also dropped.
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Non-interest income grew marginally by 1% YonY to N107.8 billion from N107.1 billion in Q3 2019: Although the bank’s net fee and commission income dropped by 11 per cent to N56.3 billion, a 29 percent growth in net trading and foreign exchange income to N45.7 billion was able to ensure the marginal growth in non-interest income for the period ended September 2020.
Overall, the double digit growth in interest income for the period ended September 2020 and the marginal growth in non-interest income for the period was not enough to provide a positive impact on the bottom line profit because of the effect of the 72 percent growth in credit impairment charges and the 19 percent rise in operating expenses for the period.
