UBA posts N766bn profit after tax — up by 26%

The United Bank for Africa (UBA) says it recorded N766 billion as profit after tax in the full year of 2024, up from N607 billion recorded at the end of 2023.

According to the audited financial statement for the year ended December 31, 2024, the figure represents a 26.14 percent appreciation in profit after tax.

The UBA also said its total assets rose to N30.4 trillion as at the end of 2024.

“The 2024 financials, filed with the Nigerian Exchange Limited (NGx) on Monday, showed an impressive rise in the bank’s profit after tax which went up by 26.14 percent to close the year at N766.6 billion, up from N607.7 billion recorded at the end of the 2023 fiscal year,” the bank said in a statement.

“The Bank’s gross earnings also grew significantly from N2.08tn recorded at the end of the 2023 financial year to N3.19tn in the period under consideration, representing a 53.6 percent growth.

“Like in the previous years, the banks’ total assets also rose remarkably by 46.8 percent, from N20.65 trillion in 2023, to close at N30.4 trillion in December 2024; signifying a milestone leap for the bank with the largest spread across the continent.”

The bank further said despite the highly challenging global economic and business environment, it “recorded a profit before tax of N803.72 billion representing a 6.1 percent increase from N757.68 billion recorded at the end of the 2023 financial year”.

Consequently, shareholders’ funds also rose from N2.03 trillion in 2023 to close the 2024 financial year at N3.41 trillion —  up by 68.39 percent.

The bank also said a final dividend of N3 per share was declared, bringing the total dividend for the year to N5 per share, subject to shareholder approval at the upcoming annual general meeting (AGM).

‘WE’RE FOCUSED ON EXPANDING BUSINESS OPERATIONS’

Commenting on the bank’s performance, Oliver Alawuba, UBA’s group managing director and chief executive officer (CEO), said 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,” Alawuba said.

“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.

“With total deposit increasing by 42.03 percent from N17.4 trillion in 2023 to N24.7 trillion and total assets hitting N30.4 trillion from N20.7 trillion, 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 also expressed excitement about the improvement recorded in the bank’s core earnings profile, adding that profits are derived from high-quality income streams from funding intermediation, fees and commissions.

“Our ex-Nigeria (Rest of Africa & International) operations have expanded significantly over the past five years, now contributing 51.7% of Group revenue, up from 31% in 2019, delivering diversification benefits and further boosting long-term shareholder value,” he added.

“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 also said the bank will continue to invest in technology, data analytics, product innovation, staff training and development.

On his part, Ugo Nwaghodoh, UBA’s executive director of finance and risk management, said the bank recorded triple-digit growth in net interest income, resulting in a remarkable improvement in net interest margin from 6.83 percent in 2023 to 9.02 percent.

Nwaghodoh also said the bank recorded strong double-digit growth in fee and commission income lines of 91.66 percent.

He added 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”.