UBA Reports N41.9 Billion In E-Business Revenue In 9 Months – Nairametrics

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United Bank for Africa Plc (UBA), one of Nigeria’s Tier 1 banks, posted total e-banking income (e-business income) of N41.9 billion in the first 9 months of 2021.

This represents a growth of 50.7% from the 27.8 billion naira in e-commerce revenue recorded in the same period last year. The data was obtained from the bank’s recently released 2021 9-month financial statements. The bank is on track to beat the 44.2 billion Naira in e-commerce revenue reported in all of 2020, making it one of the most improved in the industry.

A closer look at the data reveals that the bank recorded e-business income for the quarter ended September 2021 of N12.3 billion, slowing from the record N17.2 billion recorded in the second quarter of the year. same year. However, this compares favorably with the N9.9 billion reported in the corresponding quarter of 2020.

Nigerian banks have aggressively focused on competitive electronic banking services, gradually making it a mainstay of income composition. E-commerce revenue now accounts for 38% of UBA’s gross commission and fee income, up from 33% in the same period last year. Electronic Banking Income includes the costs of electronic bank transfers, transaction fees on its mobile application, etc.

Despite the strong increase in e-commerce revenues, the bank still faces stiff competition from other industry players, including traditional and challenger banks. This competition is reflected in the bank’s net income in this segment with margins of only 12%. For example, the bank also incurred an e-commerce spending of 37.1 billion naira during the period, compared to 24.2 billion naira in the same period last year. This suggests that 88.5% (2020: 87%) of e-commerce revenue is an expense leaving the bank with only 4.8 billion naira.

UBA results

United Bank for Africa (UBA) Plc reported impressive performance in its unaudited financial results for the third quarter ended September 30, 2021.

  • Specifically, the bank’s gross profit reached 490.3 billion naira, compared to 454.4 billion naira recorded in September 2020, while operating profit rose 13% year-on-year to close at 331, 7 billion naira in September 2021, against N293.7 billion reached a year earlier.
  • In the report filed with the Nigerian Stock Exchange (NSE) on Monday, UBA reported a 37% increase in profit before tax to close at 123.4 billion naira from 90.4 billion naira recorded at the end. Q3 2020, while profit after tax increased significantly by 36% to N104.6 billion, from N77.1 billion recorded a year earlier, bringing its annualized return on average shareholders’ equity for the third quarter 2021 at 19.2% compared to 16.4% recorded during the same period of 2020.

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