UBA’s Executive Director, Finance & Risk Management, Ugo Nwaghodoh, has reacted to the bank’s financial milestone, surpassing ₦1 trillion in net interest income, the highest recorded in history over the past 13 years.
Nwaghodoh attributed the strong financial performance to a significant expansion in net interest income, which pushed the net interest margin from 6.83% in 2023 to 9.02%. Additionally, the bank recorded a 91.66% increase in fee and commission income, further strengthening its revenue base.
This achievement comes despite economic headwinds, driven by a high-interest-rate environment.
According to UBA’s audited financial results for December 2024, filed with the Nigerian Exchange Limited (NGX) on Monday, the bank’s interest income surged by 114.9% to ₦2.3 trillion, up from ₦1.03 trillion in the previous year. However, interest expenses also rose by 128% to ₦839.2 billion, influenced by the Central Bank of Nigeria’s (CBN) aggressive monetary tightening policies.
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Key Drivers of Growth
A research note from CardinalStone highlighted that despite a 33.9% decline in non-interest revenue and a 69% surge in operating expenses, UBA’s profit before tax still rose by 6.1% to ₦803.7 billion, reflecting the bank’s resilience and effective financial strategy.
