United Bank for Africa (UBA) Q2 2024 earnings summary

Executive summary

• H1 2024 gross earnings rose 39.6% YoY to N1.371tn; PBT was N401.6bn, down slightly from N403.6bn, while PAT fell 16.4% to N316.4bn.

• Total assets grew 37.2% YTD to N28.34tn; deposits rose 33.7% to N23.21tn and loans and advances increased 26.1% to N7.00tn.

• Digital banking income increased 107.8% YoY to N106.2bn.

• EPS was N8.90 versus N10.95; an interim dividend of N2.00 per share was proposed, up from N0.50.

Financial highlights

• Interest income rose to N1.004tn from N428.3bn; interest expense increased to N328.9bn from N150.2bn, and net interest income reached N674.6bn versus N278.1bn.

• Operating income grew 19.5% to N936.6bn; PBT was N401.6bn and PAT was N316.4bn.

• Net fee and commission income was N145.1bn versus N78.3bn; fees and commissions totaled N251bn, up 99%.

• Net trading and FX gains fell to N98.2bn from N418.3bn, mainly due to maturities of underlying derivative contracts; FX revaluation and derivative fair-value gains were N14.5bn.

• Total assets were N28.34tn at June 2024, up from N20.65tn at year-end 2023.

Outlook and guidance

• FY2024 deposit growth guidance was raised to 45% from 20%, and loan growth guidance to 40% from 20%.

• Revised FY2024 targets: cost of risk 2.8%, NPL ratio 6.5%, ROAE 28%, ROAA 2.8%, capital adequacy 28%, and cost-to-income ratio 50%.

• FY2024 net interest margin guidance was raised to 8.5% from 7.5%; H1 NIM was 8.3%.