United Bank for Africa (UBA) reported a profit surge of 29.1 per cent in the three months to March, profiting from a series of rate hikes by the Central Bank of Nigeria that helped strengthen interest income and boost the bottom line.
The pan-African lender saw interest income accelerate by more than half to N191.9 billion in the period compared to a year earlier as six consecutive upward rate adjustments by the apex bank enabled banks to charge more for loans.
The CBN has increased the key interest rate six times since May cumulatively by 650 basis points to rein in inflation. Now at 18 per cent, the benchmark rate is at its peak level since it was adopted in 2006.
