UBA is Nigeria’s most profitable bank in H1

The United Bank for Africa (UBA) is Nigeria’s most profitable in the first half (H1) of 2023 ending June, according to its declared results.

UBA’s profit before tax (PBT) of N404 billion beats Zenith’s N350 billion, First Banks’s N206 billion and Access Bank’s N167.6 billion.

For UBA, this represents a 371 percent growth in PBT, compared to the N85.75 billion in the corresponding period last year.

There were strong contributions to group profit from its operations in 20 African countries, UBA America, UBA UK, UBA UAE, and UBA France which the bank describes as a demonstration of effectiveness of its global strategy and positioning as the financial intermediary for Africa and the rest of the world – thereby “delivering on the Tony Elumelu strategy”.

The lender’s gross revenue increased to N981.77 billion during the same period.

The first-half performance indicates a 163.88 percent growth, compared with the N372.04 billion gross income posted in the same period in 2022, according to the bank’s financial statement for H1 (January to June) 2023.

UBA said it recorded significant growth in its key performance indicators, having earned N278.11 billion in net interest income in H1 2023 — a 56.72 percent surge relative to the previous year’s N177.46 billion.

The bank rounded up the review period with 437.76 percent year-on-year growth in net profit, recording N378.23 billion profit-after-tax, in contrast to the N70.33 billion bottom line posted in H1 2022.

The financial institution said its shareholders’ funds also improved to N1.71 trillion, making it possible to afford an increase in interim dividends to stakeholders, which rose from N0.20 kobo per share distributed last year, to N0.50 kobo in H1 this year.

UBA added that customers also increased their deposits in the company to N11.14 trillion, marking a 42.4 percent growth from the N7.82 trillion in recorded in 2022.

In addition, amid the growth in the top line and bottom line, UBA said there was an uptick in its total assets which jumped to N15.38 trillion at the end of June 2023, rising from N10.85 trillion reported at the end of December 2022.