UBA Records N17.4trn Financial Deposit, Shares N95.8bn Final Dividend

United Bank for Africa (UBA) has announced that it successfully sustained its deposit mobilisation efforts, growing total deposits by 93 per cent to N17.36 trillion in the year-ended 2023 from N8.99 trillion in the corresponding period of 2022.

That historic improvement in the deposit component of its balance sheet helped the bank to a very strong year, generating gross revenue of N2.08 trillion and profit after tax of N607.69 billion.
Based on the revenue accrual to the bank in the year, the board of directors of the bank, chaired by Tony Elumelu presented a final dividend of a final dividend of N78.7 billion for FY 2023, representing N2.30 per ordinary share held from the retained earnings account as at 31 December 2023 to the company’s shareholders which was unanimously approved for disbursement at its annual general meeting on May 24 in Abuja.

Combined with an interim dividend of N0.50 per share paid for H1 2023, UBA paid a total dividend of N2.80 per share, amounting to N95.8 billion.

Speaking at the AGM, the chairman said UBA stands poised to continue its leadership trajectory, building on a rich 75-year legacy of serving ITS customers and catalysing Africa’s growth. “This legacy is woven from decades of insightful market understanding and a steadfast commitment to the communities we serve. It has equipped us with the key human, technological, and operational capabilities that form our firm foundation,” he stated.

He also emphasised the need to create job opportunities for African youth, stressing “Youth unemployment and joblessness is a betrayal of generations.” He said attracting and retaining talent is crucial to the success of his bank.

Last year, UBA concluded the inaugural Graduate Management Accelerated Programme (GMAP), marking a significant milestone in its commitment to grooming young African professionals. The programme saw the induction of 700 graduates into the UBA Tribe, following a six-month hands-on work and learning experience.

He said the capabilities, coupled with UBA’s strong brand and meticulously crafted propositions, position it not just to compete but to thrive in the ever-evolving financial landscape. “We are confident that by staying true to these core principles, UBA will continue to deliver exceptional value to our stakeholders and play a pivotal role in shaping a brighter future for Africa.”

The bank’s financial statement showed that its loan book expanded by 61 per cent to N5.55 trillion, from N3.44 trillion, which Elumelu could further expand to N15 trillion to earn more revenue from credit lending.

In seeking secure and convenient payment methods, businesses require modern payment acceptance solutions, and issuers and acquirers need innovative offerings for their customers. Elumelu promised that “we facilitate governments in promptly distributing payments to individuals during crucial times of need.”

The group managing director of the bank, Oliver Alawuba reassured the shareholders that the bank was resilient and buoyant enough to meet up with the ongoing recapitalisation requirement of the Central Bank of Nigeria (CBN).

The bank maintained a well-structured and diversified balance sheet, with total assets and shareholders’ funds closing at N20.65 trillion and N2.03 trillion respectively.

He said UBA experienced robust trading activity in 2023, with 9.63 billion shares exchanged, representing 28.2 per cent of the shares outstanding. The broader Nigerian equities market ascended to a 15-year peak amidst market-friendly reforms and buoyant corporate performance.

The NGX All-Share Index closed at a record high of 74,773.77 points, representing a substantial 45.90 per cent year-to-date (YTD) gain from its opening position of 51,251.06 points. Market capitalisation likewise witnessed a notable surge, closing at N40.92 trillion, signifying a 31.8 per cent expansion from N27.92 trillion at the end of 2022. UBA concluded the year at N25.65 per share translating to a 237.5 per cent YTD increase.