Event

In Q2 2023, the Group reported an impressive financial performance, as gross earnings rose sharply by 278% year-on-year to N710.60bn. This came on the back of a 79% year-on-year rise in interest income to N236.06bn, as the bank recorded improvements across all the interest income lines, thanks to the revaluation of foreign currency (FCY) component of the bank’s loan book and elevated interest rate environment.

The combined performance of net interest income after impairment (+71%) and non-interest income (+1109%) translated to a 267% year-on-year growth in operating income to N461.33bn. Overall, profit before tax grew 7x year-on-year to N342.28bn from N41.27bn, while profit after tax grew 10x year-on-year to N324.65bn from N28.84bn.

Outlook

Following the impressive Q2 2023 performance, primarily driven by FX revaluation gains, we have revised our earnings projections (revised EPS N13.38 vs previous EPS: N9.36). The projection is based on our expectations of further asset repricing amid rising interest-rate environment. However, the gains are expected to be capped by a simultaneous increase in operating costs. Furthermore, we anticipate a moderate or slightly improved financial performance in the next quarters as the one-off FX gain dissipates.

Please follow the link “UBA Q2 2023 – Interest Income Growth Lifts Earnings” to view the whole report.

Thank you.