United Bank for Africa Plc (UBA) marked its 75th anniversary on a high note on Friday as shareholders unanimously approved a total dividend payout of N171.3 billion for the 2024 financial year at the Group’s Annual General Meeting (AGM) held in Lagos.
The dividend, which translates to N5.00 per share—comprising an interim dividend of N2.00 earlier paid and a final dividend of N3.00 per share—reflects UBA’s commitment to delivering superior returns to its shareholders amid robust financial performance.
Addressing shareholders at the AGM, chairman of the Board, Tony Elumelu, said the bank achieved gross earnings of N3.19 trillion and profit after tax of N767 billion, affirming UBA’s solid fundamentals and capacity to create long-term value.
“Our 2024 performance demonstrates the strength and resilience of our business. Behind the numbers are the efforts of our dedicated people, enabling us to provide real solutions to the needs of individuals, businesses, and governments across our footprint,” Elumelu said.
UBA also recorded substantial growth in its balance sheet, with customer deposits rising by 42 per cent to N24.65 trillion and its loan book expanding by 35 per cent to N7.51 trillion. Total assets closed at N30.32 trillion while shareholders’ funds stood at N3.42 trillion.
Shareholders praised the bank’s performance and dividend policy, with the N3.00 final dividend receiving unanimous approval during the meeting.
The AGM also provided a platform to brief shareholders on the bank’s capital raise in response to the Central Bank of Nigeria’s new minimum capital requirement of N500 billion for international commercial banks.
In November 2024, UBA launched a rights issue, offering 6.84 billion ordinary shares at N35 per share. The offer was oversubscribed by 4.8%, raising N251 billion—fully verified and approved by the CBN.
Elumelu said the final phase of the capital raise will be concluded in Q3 2025, well ahead of the March 2026 deadline. Proceeds from the exercise will support the bank’s digital transformation and business expansion initiatives.
Group managing director/CEO, Oliver Alawuba, attributed the Group’s impressive earnings growth to a combination of strategic initiatives and strong fundamentals, particularly a significant rise in net interest income and net commission and fees.
“Our growth in earnings was fuelled by a significant increase in net interest income and net commission and fees, driven by a strong expansion in the loan portfolio and higher net interest margins,” Alawuba explained.
He added that the group’s digital banking business across multiple geographies played a critical role in boosting non-interest income.
“The net commission and fees benefited from our digital banking businesses across geographies, in line with our strategic goals,” he said.
On cost management, Alawuba emphasised UBA’s continued discipline, noting that cost-to-income closed at 49.6 per cent, which was in line with guidance.
“This outcome is indicative of steady business-as-usual expenses, the impact of inflationary trends, and deliberate increments related to planned strategic investments and the establishment of new business ventures,” he stated.
Despite challenges in the macroeconomic environment, Alawuba affirmed the strength of the Group’s risk assets and overall financial health.
“Notwithstanding the adverse macroeconomic conditions, the fundamental strength of our underlying asset quality persists, as reflected in a Non-Performing Loan (NPL) ratio of 5.58 per cent,” he said.
UBA operates in a total of 24 countries. It has a presence in about 19 African countries, as well as the United Kingdom, France, and the United Arab Emirates. UBA is also the only sub-Saharan African bank with a banking license in the United States.
Looking ahead, Alawuba outlined UBA’s strategic priorities for the 2025 financial year, centered around innovation, operational efficiency, and customer-centricity.
He said the bank will now focus on digital transformation by leveraging AI and advanced analytics to enhance customer experiences and operational efficiency.
“We are deepening penetration in existing markets while exploring new opportunities for growth,” He stated. The aim is to elevate service delivery through personalized offerings and feedback-driven improvements.
He said the bank will be scaling green finance initiatives and embedding ESG principles across our operations. “We will expand our reach through agency banking and innovative products tailored for underserved communities.”
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