UBA Grows Pre-tax Profit To N803.7bn, Declares N3 Final Dividend

United Bank for Africa (UBA) Plc, has recorded a profit before tax of N803.72 billion for the year ended December 31, 2024.

The Bank also proposed a final dividend of N3.00 kobo per share, for the financial year ended December 31, 2024, bringing the total dividend in the year to N5.00 per share.

The audited financial results for the full year ended December 31, 2024 of UBA released on the Nigerian Exchange Limited showed its major indicators witnessing significant improvement.

The Bank’s 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, while profit after tax rose 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.

Gross earnings also grew significantly from N2.08 trillion in 2023 financial year to N3.19 trillion in the period under consideration, representing a 53.6 percent growth.

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 Group shareholders’ funds rose from N2.030 trillion as at December 2023 to close the 2024 financial year at N3.419 trillion, achieving an impressive growth of 68.39 percent.

Speaking on the results, group managing director/chief executive officer of the Bank, Oliver Alawuba, stated that 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. 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,” Alawuba highlighted.

According to him, 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 expressed excitement at the marked improvement recorded in the bank’s core earnings profile, as he explained that the profit is derived from high-quality income streams from funding intermediation, fees and commissions, thus reflecting strong long-term, sustainable revenues generation capacity.

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

“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 noted.

He pointed out the bank’s resolve to invest continuously in technology, data analytics, product innovation, staff training and development, which will collectively enhance our customers’ experience.

On his part, executive director, Finance & Risk Management, UBA, Ugo Nwaghodoh, said the bank recorded triple digit growth in net interest income, resulting in remarkable improvement in net interest margin from 6.83 percent in 2023 to 9.02 percent, while also recording strong double-digit growth in fee and commission income lines of 91.66 percent.

“UBA Group continues to demonstrate strong capital levels, with shareholders’ funds growth of 68.4 per cent to N3.42 trillion and a solid capital adequacy ratio of 31.0 per cent, and as we defensibly position the portfolio to navigate prevailing global and regional macroeconomic upheavals, asset quality improved, with NPL ratio moderating to 5.58 per cent, with strong provision coverage at 81 per cent”, Nwaghodoh noted.

He explained 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.