Fruits of quality services: UBA records over 646 billion FCFA profit in 2023!.

The bank’s net profit is said to have stood at $1.06 billion (approximately 646,172,926,000 FCFA. 

The 2023 financials, filed by the Bank at Nigerian Exchange Limited, NGx on Monday, shows an impressive leap in gross earnings, as it grew from $1.9 billion, recorded at the end of 2022 to close at $2.9 billion; representing a strong 143 percent growth.

The banks’ total assets also rose remarkably by 90.22 percent, doubling the $11 billion mark, to close at $21.7 billion in December 2023; up from $11.5 billion in 2022. 

This leap remains a very significant achievement and milestone in the history of the financial powerhouse. 

Despite the highly challenging global economic and business environment, UBA recorded a laudable profit before taxes.

The bank’s exponential growth stood at 277 percent, to close the year under review at $1.06 billion, rising from $446 million recorded at the end of the 2022 financial year; while Profit After Tax, PAT, grew by 257 percent from $378 million in 2022, to $849 million in the year under consideration. 

Consequently, UBA Group Shareholders’ Funds rose from $969 million as at December 2022 to close the 2023 financial year at $2.1bn, achieving an impressive growth of 120.2%, compared to prior year.

In the year under consideration, UBA Group cost-to-income ratio dropped from 59.2%, in 2022, to 37.2 per cent pointing at the Group’s improving efficiency.
In fulfilment of the promise made by the UBA Group Chairman, Tony Elumelu, to shareholders at the last Annual General Meeting, the Bank proposed a final dividend of 0.24 cents for every ordinary share of 0.05 cents, for the financial year ended December 31, 2023. 

The final dividend is subject to the ratification of the shareholders during its upcoming Annual General Meeting, AGM.

Also worthy of note, UBA recorded a 61.3 percent growth in loans to customers, moving up to $5.8 billion in 2023, whilst customer deposits improved by 90.31 percent to $15.7 billion, compared to $8.2 billion recorded in the corresponding period of 2022.

This reflects increased customer confidence, enhanced customer experience, successes from the ongoing business transformation programme and the deepening of its retail banking franchise.

MD salutes unprecedented results

Commenting on the results, UBA’s Group Managing Director, Oliver Alawuba, said: “I am very pleased with the unprecedented results achieved by our Group in FY2023. The Group made a profit before tax of $1.06 billion, from $446 million in the prior year. The balance sheet also grew to $21.7 billion from $11.5 billion in the previous year”.

He added that: “The Group’s shareholder’s funds crossed $2.1 billion from $969m in 2022, whilst total assets crossed the $21 billion mark (90.2% YoY growth). The Group is well positioned for further business expansion in FY2024 having closed FY2023 with Capital Adequacy Ratio of 32.6%”.

Alawuba further revealed that the bank’s diversified business model (Pan-African and International strategy) is justified by the contribution of its Ex-Nigeria business to the Group’s results and reinforces its resolve to expand our market share of customers, funding, digital and transaction banking businesses across Africa. 

“Driven by our customer service and execution-led delivery model, we will continue to expand our market share and create value for our shareholders and meet the expectations of our various stakeholders,” Alawuba stated.

UBA’s Executive Director, Finance & Risk Management, Ugo Nwaghodoh, said the 2023 full year was a particularly eventful year, despite galloping inflation and currency depreciation ravaging key markets, amidst pockets of regional conflicts and security challenges.

“I am delighted however at the strong growth in earnings and profitability recoded in the year. The Group conservatively set up significant impairment reserves against its overall risk assets portfolio considering the latent impact of the macroeconomic headwinds on our credit portfolio. Consequently, Cost of Risk grew to 3.09% from 0.63% in the prior year,” Nwaghodoh noted.

Expectations for 2024

 On expectation for the 2024 financial year, Nwaghodoh said, UBA remains fervently committed to sustainable growth and maintaining its strong compliance and risk management practices.

United Bank for Africa Plc is a leading Pan-African financial institution, offering banking services to more than thirty-five (35) million customers, across 1,000 business offices and customer touch points in 20 African countries. 

With presence in New York, London, Paris and Dubai, UBA is connecting people and businesses across Africa through retail, commercial and corporate banking, innovative cross-border payments and remittances, trade finance and ancillary banking services.