2024 first half: UBA records double-digit growth, impressive performance.

The report was released to the Nigerian Stock Exchange, NGX, Monday September 30. It showed the financial institution’s resilience and dynamism in the face of turbulent global economic environment. 

The report showed that as at June 30, the bank’s gross earnings and operating incomes ended the period under review on two digits. Gross increase for the first half of this year, the report shows, are up by 39.6 percent. 

It has moved from Naira 981.77 billion (approximately 344,797,015,793.48 FCFA) at the close of 2023 to Naira 1.371 trillion (estimated at 481,494,350,665.50 FCFA).

The record is in a context of a tough world economic climate, and other replete challenges in Nigeria where the UBA is headquartered and hurdles across African countries where it has subsidiaries.

According to the same report, interest income recorded a 134.3 percent rise to Naira 1.003 trillion (352,252,978,641.50 FCFA). The rise is up from N428.2 billion (150,383,574,730.10 FCFA) recorded in June 2023.

The total assets of the UBA going by the latest audit for the first half of this year are up by 37.2 per cent from Naira 20.6 trillion (7,234,707,238,300 FCFA) in December 2023 to N28.3 trillion (9,938,942,468,150 FCFA).

Deposits from clients, the audit also show, hit a 33.7 percent to reach Naira 23.2 trillion (8,147,825,627,600.00 FCFA) up from Naira 17.3 trillion (6,075,749,282,650 FCFA) as at December 31, 2023.

Profits Before Tax, PBT, in the last six months of this year the audit report indicated are at Naira 402 billion (141,182,150,961.00 FCFA). Within the same period in 2023, PBF was at Naira 403 billion (141,533,350,341.50).

On the other hand, Profit After Tax, PAT, the audit shows, witnessed a slight drop from Naira 378 billion (132,753,365,829.00 FCFA) to Naira 316 billion (110,979,004,238.00 FCFA)

Shareholders’ funds are also in good form with a 47 percent growth to reach Naira 2.99 trillion (1,050,086,147,695 FCFA) compared to Naira 2.03 trillion (712,934,742,415.00 FCFA) in December 2023

The Board of Directors of UBA voted, approving interim dividend at Naira 2.00 (approximately 70 FCFA) per share for every ordinary share of N0.50 each held by its shareholders. 

The amount the UBA said, represents 300% increase compared to the N0.50 declared within the same period in 2023.

Officials hail milestone, restate commitment to serve 

The Group Managing Director, GMD, also Chief Executive Officer, CEO, of the UBA Group, Oliver Alawuba, saluted the achievements, insisting that the bank remains committed to give its shareholders value.

“UBA Group has continued to deliver strong double-digit growth in high quality and sustainable banking revenue streams, driven by a focused growth in balance sheet, transaction and digital banking businesses across geographies in line with our strategic goals,” Alawuba is quoted as having said.

Alawuba is also reported to have further remarked that the UBA Group’s “ performance has been buoyed by consistent strong growth in all core and sustainable banking income lines. Our intermediation business showed strong growth with net interest income expanding by 143% year-on-year to Naira 675billion (237,059,581,837.50 FCFA)”. 

For the second half of the year, the Group Managing Director, “as the Group intensifies its customer acquisition drive, we are making significant investments in technology, data analytics, product research and innovation to enhance our value proposition and customer experience”.

UBA Group Executive Director Finance and Risk, Ugo Nwaghodoh, heralded the operational efficiency of the bank as depicted in its cost-to-income ratio normalizing around the 50 percent. 

Ugo underscored that “Our cost optimization provides scope for further moderation, as we explore options towards a drastic reduction of our foreign currency denominated cost components, robotizing and automation of processes and application of artificial intelligence to our operations”.

He restated the attachment of the UBA to effectively manage the heightened credit, cyber and information security risks and do business while respecting the company’s moderate risk philosophy while at the same time prioritizing sustainability.

“The Group has made significant progress and is on course to shore up its share capital to support its medium to long term aspirations, whilst aligning with the recent regulatory requirement in Nigeria and other jurisdictions that we operate in,” Ugo declared.

About UBA Group

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

It is present 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. 

This article was first published in The Guardian Post Edition No:3249 of Friday October 04, 2024