UBA posts 40% growth in earnings, declares N2 interim dividend
United Bank for Africa (UBA) Plc, Africa’s global bank, has announced a financial performance for the first half of 2024, reporting a 39.6 percent rise in gross earnings to N1.37 trillion. This growth is an increase from N981.77 billion recorded in the same period of 2023, according to the bank’s audited financial results released on Monday.
Amid challenging macroeconomic conditions and geopolitical uncertainties across key African markets, UBA’s earnings surged, fueled by a 134.3 percent increase in interest income to N1.003 trillion, compared to N428.2 billion in June 2023. Total assets also grew by 37.2 percent, from N20.6 trillion in December 2023, reaching N28.3 trillion, while customer deposits saw a 33.7 percent rise to N23.2 trillion from N17.3 trillion at the close of 2023.
Profit before tax (PBT) for the period stood at N402 billion, slightly down from N403 billion recorded last year, while profit after tax (PAT) saw a dip from N378 billion to N316 billion. Nevertheless, the bank’s shareholders’ funds saw a remarkable 47 percent increase to N2.99 trillion, up from N2.03 trillion in December 2023.
Recognising its strong performance, UBA declared an interim dividend of N2.00 per share, for every ordinary share of N0.50 each held by its shareholders, a 300 per cent increase from the N0.50 per share declared in the corresponding period of 2023. The dividend is payable to shareholders holding ordinary shares of N0.50 each.
Commenting on the results, UBA Group Managing Director/CEO, Mr. Oliver Alawuba, expressed satisfaction with the bank’s consistent double-digit growth in sustainable banking revenues, stating, “UBA Group has continued to deliver strong double-digit growth in high quality and sustainable banking revenue streams, driven by a focused growth in balance sheet, transaction and digital banking businesses across geographies in line with our strategic goals.
“The Group’s performance has been buoyed by consistent strong growth in all core and sustainable banking income lines. Our intermediation business showed strong growth with net interest income expanding by 143 per cent YoY to N675billion.
“As the Group intensifies its customer acquisition drive, we are making significant investments in technology, data analytics, product research and innovation to enhance our value proposition and customer experience.”
Executive Director of Finance & Risk, Ugo Nwaghodoh, attributed the bank’s operational efficiency to its cost optimization strategy.
He said, “Our cost optimisation provides scope for further moderation, as we explore options towards a drastic reduction of our foreign currency denominated cost components, robotizing and automation of processes and application of artificial intelligence to our operations.”
He revealed that the Group is focused on managing risks, including credit, operational, cyber, and information security challenges, while continuing to operate within the boundaries of its moderate risk appetite and aligning with its sustainability goals.
“The Group has made significant progress and is on course to shore up its share capital to support its medium to long term aspirations, whilst aligning with the recent regulatory requirement in Nigeria and other jurisdictions. that we operate in,” Nwaghodoh added.
United Bank for Africa Plc is a prominent Pan-African financial institution, providing banking services to over 35 million customers through 1,000 business offices and customer touchpoints in 20 African countries. With a presence in New York, London, Paris, and Dubai, UBA connects people and businesses across Africa through retail, commercial, and corporate banking, innovative cross-border payments, remittances, trade finance, and other banking services.
