Daily Courier – Africa’s Global Bank, United Bank for Africa Plc, was among the top deposit money banks (DMBs) in marketing and advert spending, according to data from the 2021 annual reports of financial service companies quoted on the Nigerian Exchange (NGX). Benefits of the significant marketing and advert budget showed on its revenue stream in the FY 2021 and Q1 2022 interim reports.
The Tier-1 bank spent N8.75 billion on advertising, promotions, and branding in 2021. This is a marginal increase compared to N8.51 billion incurred in the previous year, or 2.8 percent. Its advert cost accounted for 14.6 percent of the total N60.01 billion recorded by twelve top banks on advertisement expenses.
UBA was also able to increase its interest earnings by 10.8 percent to N474.26 billion in 2021 from N427.86 billion recorded in 2020, while it posted an 8.7 percent increase in profit after tax to N118.7 billion.
The bank raked in N15.11 billion as Electronic banking income, representing a 21.04 percent increase from N12.48 million in Q1 2021.
Data from the bank’s 2021 report further revealed that it grew its deposits from customers by 4.47 percent to N6.65 trillion while its total assets now stand at N8.89 trillion, with Net assets rising 2.60 percent to hit N825.75 billion.
Despite intense headwinds that impacted the economy this past quarter (Q1 2022), UBA reported moderate yet impressive performance which signals a positive outlook for the entire year.
In the bank’s Q1 2022 interim financial results released in the past week, the Tier-1 lender recorded positive performance in the key parameters that underscored resilience and unyielding efficiency in its corporate practice.
The interim financial results revealed a profit after tax (PAT) of N41.5 billion during the quarter against N38.2 billion recorded in the corresponding period of 2021 reflecting a moderate 8.7 percent growth. Profit before tax (PAT) was N44.5 billion compared with N40.6 billion which shows a 10 percent increase. Interest income rose by 15.2 percent to N125.0 billion from N108.6 billion in the corresponding period.
The bank’s commitment to efficient application of technology yielded good results. It raked in a total of N15.11 billion during the quarter reflecting 21 percent growth over N12.48 billion in the corresponding period. It had spent N14.9 billion on E-Banking expenses in Q1 2022 against N13.52 billion in Q1 2021 reflecting 10.1 percent increase. Total Interest income recorded a 15.2 percent increase to N125.07 billion from N108.59 billion in the corresponding period.
Advertisement is one of the major means by which companies gain market presence and customer base. It also serves as a medium to communicate with customers and keep a good public image. Therefore, companies across all sectors, prioritise advertisement and promotions in their marketing strategy.
Access, Zenith and First Bank recorded advert and marketing spends of N9.49 billion, N7.1 billion and N10.46 billion respectively.