UBA posts N804bn profit, total assets hit N30.4tn

United Bank for Africa Plc has reported a profit before tax of N803.73bn for the 2024 financial year, driven by solid core earnings and improved operational efficiency.

This was indicated in the bank’s audited financial results, filed with the Nigerian Exchange Limited on Monday, which also showed the profit after tax hitting N766.57bn from N607.69bn in the previous year.

Similarly, the group’s total assets also saw a significant surge of 46.8 per cent, reaching N30.4tn from N20.65tn in the previous year. UBA, despite the macroeconomic headwinds of 2024, saw its gross earnings climb by 53.6 per cent to N3.19tn, compared to N2.08tn recorded in 2023.

Consequently, UBA Group Shareholders’ Funds rose from N2.03tn as of December 2023 to close the 2024 financial year at N3.42tn, achieving an impressive growth of 68.39 per cent.

The banking group also proposed a final dividend of N3.00 kobo 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. This high dividend is on the back of the impressive performance and in fulfilment of the promise made by the UBA Group Chairman, Tony Elumelu, to shareholders at the last Annual General Meeting.

Speaking on the result of the group in the 2024 financial year, UBA’s Group Managing Director/Chief Executive Officer, Oliver Alawuba, described the performance as being driven by high-quality income streams from funding intermediation, fees and commissions.

“Our continued investment in our global network has allowed us to deliver high-quality earnings while expanding our customer base. With total deposits increasing by 42.03 per cent from N17.4tn in 2023 to N24.7tn in 2024, our growth remains broad-based across all core businesses despite macroeconomic challenges,” Alawuba stated.

He noted that UBA’s operations outside Nigeria had expanded significantly over the last five years, now contributing 51.7 per cent of group revenue, compared to 31 per cent in 2019. He also revealed plans to deepen the bank’s international presence, particularly in France and other strategic markets.

“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 authorisation in France and considering other viable markets in the short to medium term,” Alawuba affirmed.

UBA’s Executive Director, Finance & Risk Management, Ugo Nwaghodoh, highlighted the bank’s strong financial position.

Nwaghodoh said the bank recorded triple-digit growth in net interest income, resulting in 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 N3.42tn 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 the NPL ratio moderating to 5.58 per cent, with strong provision coverage at 81 per cent,” Nwaghodoh noted.

He explained that as the bank navigates evolving risks, its management remains focused on responsible growth, delivering customer-focused value propositions, whilst ensuring compliance with regulatory requirements in all jurisdictions.

UBA, which operates in 20 African countries as well as in the UK, the US, France, and the UAE, continues to strengthen its financial position and expand its reach, serving over 45 million customers globally.