United Bank for Africa recorded a significant increase in e-banking revenue to its highest level in five years.
Electronic banking revenue jumped 22% to N36.3 billion in the first half of 2022 from N29.6 billion in the same period last year.
Electronic banking revenue represents revenue collected from transactions processed through electronic channels such as ATMs, point of sale, mobile banking as well as credit and debit card transactions, while revenue from commercial transactions involve one-time fees related to letters of credit and other commercial activities which are excluded. from those included in the determination of effective interest rates to those recognized at amortized cost.
The bank’s profit jumped 16% to N70.3 billion, the highest in four years, from N60.6 billion for the period ending June 2021.
Commenting on the result, Oliver Alawuba, Group Chief Executive, UBA, said: “Our performance in the first half of 2022 is in line with our expectations as the Group increased gross profit by 17.8%, largely driven by growth double digits of both interest and non-interest income.
“We continued to leverage our customer-centric philosophy to pursue the mission of delivering superior value to our stakeholders. This is evident in the increase in low-cost customer deposits and strong growth in our payments and banking transactions,” Alawuba said.
The Tier 1 bank’s net interest income increased by 20% to N177.4 billion from N148 billion in the first half of 2021.
“Group profitability increased by 12.6% to N85.7 billion, with double-digit growth recorded across our key revenue line. We delivered decent 20% growth in our net interest income as we continued to moderate our funding costs while improving return on assets, contributing to the strong 20% growth in operating income,” noted Alawuba.
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Additionally, the bank’s fees and commission income increased by 30% to N96.4 billion in June 2022 from N74.1 billion in June 2021.
Fees and commissions reached N36.5 billion in the first half of 2022, up 29% from N28.3 billion in the first half of 2021.
Online banking spending jumped 21% to N27.3 billion in the first half of 2022 from N22.5 billion in the same period last year.
Net trading and foreign exchange revenue stood at N9.1 billion year-on-year.
Total assets increased by 6% to 9 trillion naira in June 2022 from 8.5 trillion naira in June 2021.
Net cash generated from operating activities fell to N478.1 billion, 12% from N546 billion in the first half of 2021.
Net cash used in investing activities recorded negative N208.65 billion from negative N326.9 billion during the period under review.
Net cash used in financing activities recorded N92.6 billion on negative cash flow of N182 billion year-on-year.
Cash and cash equivalents at the end of the year increased by 9% to reach 961 billion naira in the first half of 2022, compared to 879 billion naira in the same period last year.