UBA generates N284.7bn from e-business transactions in 2024
United Bank for Africa (UBA) generated a total of N284.7 billion from electronic business transactions in the 2024 financial year, reflecting a substantial increase in digital banking adoption.
The earnings from electronic transactions encompass various services, including ATM withdrawals, card payments, online and mobile banking, interbank transfers, SMS/email notifications, and merchant transactions.
This marks an impressive 85.9% growth in e-transaction revenue compared to the N157.1 billion recorded in 2023, underscoring the bank’s expanding digital footprint.
The figures were revealed in UBA’s audited financial statement for the year ended 31 December 2024.
In 2024, UBA recorded: N236.3 billion in electronic banking income; N48.4 billion from fund transfer fees.
By comparison, in 2023: Electronic banking income stood at N125.6 billion; Fund transfer fees amounted to N31.5 billion.
While digital revenues surged, the bank’s electronic transaction expenses also climbed to N199.2 billion in 2024, up from N107.1 billion the previous year.
UBA experienced a remarkable 158% increase in income from remittance fees in 2024.
Remittance fees refer to charges levied on cross-border money transfers, including funds sent home by Nigerians living abroad and international business transactions.
The bank generated N39.91 billion in remittance fee income, a significant jump from N15.45 billion recorded in 2023.
For comparison, Zenith Bank reported N13.48 billion in foreign currency transaction fees for 2024, according to recent financial reports.
UBA posted a pre-tax profit of N803.7 billion in 2024, reflecting a 6% increase from the N757.6 billion recorded in 2023.
After-tax profit surged by 26.14% to N766.5 billion, marking the highest in the bank’s history.
Following this strong performance, the bank proposed a final dividend of N3.00 per share, bringing its total dividend payout for 2024 to over N170 billion.
UBA’s net interest income reached N1.5 trillion, driven by solid earnings from loans and N1.1 trillion from investment securities, including treasury bills.
The high-interest rate environment in Nigeria contributed to greater returns on government securities. However, it also prompted more cautious borrowing behaviour among customers.
Meanwhile, interest expenses nearly tripled, rising 128.18% year-on-year to N839.2 billion due to higher funding costs.
