UBA group delivers strong financial performance despite global economic challenges
By Esther Agbo
United Bank for Africa (UBA) Group has reported impressive financial results for the first half of 2024, achieving strong double-digit growth despite a challenging global economic environment. This was revealed by the UBA’s Group Managing Director/CEO, Oliver Alawuba, during the bank’s H1 2024 Investors’ Conference.
Addressing stakeholders, Alawuba acknowledged the economic headwinds faced by the regions where the bank operates, including high inflation, rising debt levels, and tighter monetary policies. Despite these challenges, he emphasised UBA’s resilience, attributing the bank’s success to its “strong leadership, a dedicated team, supportive customers, and a clear strategic direction.”
In his words, “Our strong leadership, a dedicated team, supportive customers and a clear strategic direction have enabled us to achieve sustained and profitable growth. We have remained focused on navigating these challenges while upholding the ideals of Enterprise, Excellence, and Execution (3 Es).
“Our commitment to these principles, encapsulated in our ‘EXECUTION’ mantra, has brought us closer to industry leadership in several markets. Our financial performance reflects our unwavering focus on delivering value to our customers through our Customer-First (C1st) philosophy.”
UBA’s H1 2024 financial results showcased remarkable growth across key metrics. The bank posted a Profit Before Tax of N401.6 billion, reflecting effective risk management amidst global economic volatility. Customer deposits grew by 34 per cent, rising from N17.4 trillion at year-end 2023 to N23.2 trillion, while total assets increased by 37 per cent to N28.3 trillion, up from N20.7 trillion at FYE 2023, driven by strong customer relationships.
The bank reported an impressive growth, with net interest income expanding by 143 per cent year-on-year to N675 billion, further underlining the strength of our core banking operations.
Alawuba highlighted the significant impact of the bank’s digital transformation, noting a 107.8 per cent year-on-year growth in digital banking income, which reached N106 billion while funds transfer and remittance fees rose 188.7 percent and 228 percent, respectively. Income from trade transactions grew 83 per cent to N18 billion.
He also noted that UBA’s commitment to technological innovation and data analytics has strengthened its position as a leader in digital banking and payment solutions.
“Our strategy of investing in technology, innovation, and data analytics continues to yield significant returns, positioning us as a leader in digital transformation,” he said.
Despite global market volatility and regional political instability, the bank remains optimistic about the future, supported by its investments in technology, infrastructure, and partnerships.
Alawuba said the bank entered the second half of 2024 from a position of strength, adding that UBA’s “EXECUTION” mantra will continue to drive market leadership and deliver excellent customer experiences.
Moreover, Alawuba reaffirmed UBA’s commitment to Environmental, Social, and Governance (ESG) responsibilities, emphasizing the bank’s role in promoting sustainability across Africa.
In his closing remark, Alawuba expressed gratitude to the bank’s employees, customers, regulators, and shareholders, stating, “our successes in H1 2024 were made possible by the dedication of our colleagues, the trust of our customers, the support of our regulators, and the confidence of our shareholders. We remain committed to achieving even greater milestones with your continued support.”
