For the year ended December 31, 2024, United Bank for Africa (UBA) Plc has declared N766.6billion Profit After Tax, up from N607.7billion recorded at the end of 2023, an increase of of 26.14 per cent.
The 2024 financials, filed with the Nigerian Exchange Limited (NGX) on Monday, showed that gross earnings also grew significantly from N2.08trillion recorded at the end of the 2023 financial year to N3.19trillion in the period under consideration, representing a 53.6 per cent growth.
The banks’ total assets also rose by 46.8 per cent, from N20.65bn in 2023, to close at N30.4trn in December 2024; signifying a milestone leap for the bank with the largest spread across the continent.
Despite the highly challenging global economic and business environment, UBA recorded a profit before tax of N803.72bn representing a 6.1 per cent increase from N757.68bn recorded at the end of the 2023 financial year.
Consequently, UBA Group Shareholders’ Funds rose from N2.03trn as of December 2023 to close the 2024 financial year at N3.419tn, achieving a growth of 68.39 per cent.
As a result of the performance, the bank proposed a final dividend of N3 for every ordinary share of 50 kobo, for the financial year ended December 31, 2024.
This brings the total dividend in the year to N5.00. The final dividend is subject to the ratification of the shareholders during its upcoming Annual General Meeting (AGM).
UBA’s Group Managing Director/Chief Executive Officer, Oliver Alawuba, who expressed excitement at the results, stated that the 2024 financial performance demonstrates the bank’s continued focus on driving earnings growth, preserving asset quality, expanding business operations and deepening market share.
“Our continued investment in our highly diversified global network allows UBA to deliver high-quality, consistent earnings. Our businesses have been able to grow product and service income and expand our deposit base, allowing the Group to increase earnings while maintaining strong spreads and margins,” Alawuba highlighted.
According to him, “With total deposit increasing by 42.03 per cent from N17.4trn in 2023 to N24.7tn and total assets hitting N30.4trn from N20.7trn, the just-released results reflect broad-based growth across all core businesses and were achieved despite prevailing macroeconomic challenges, geopolitical uncertainties, and exchange rate volatilities.”
The GMD expressed excitement at the marked improvement recorded in the bank’s core earnings profile, as he explained that the profit is derived from high-quality income streams from funding intermediation, fees and commissions, thus reflecting strong long-term, sustainable revenue generation capacity.
“Our ex-Nigeria (Rest of Africa & International) operations have expanded significantly over the past five years, now contributing 51.7 per cent of group revenue, up from 31 per cent in 2019, delivering diversification benefits and further boosting long-term shareholder value.
“This will continue to grow, as we further explore strategic markets that align with our overall vision. We are currently upgrading our business scope and authorization in France, and considering other viable markets in the short to medium term,” Alawuba noted.
He pointed out the bank’s resolve to invest continuously in technology, data analytics, product innovation, staff training and development, which, according to him, will collectively enhance our customers’ experience.
On his part, UBA’s Executive Director of Finance & Risk Management, Ugo Nwaghodoh, said the bank recorded triple-digit growth in net interest income, resulting in a remarkable improvement in net interest margin from 6.83 per cent in 2023 to 9.02 per cent, while also recording strong double-digit growth in fee and commission income lines of 91.66 per cent.
“UBA Group continues to demonstrate strong capital levels, with shareholders’ funds growth of 68.4 per cent to N3.42trn and a solid capital adequacy ratio of 31.0 per cent, and as we defensibly position the portfolio to navigate prevailing global and regional macroeconomic upheavals, asset quality improved, with NPL ratio moderating to 5.58 per cent, with strong provision coverage at 81 per cent”
