UBA Grows EPS by 43%, Raises Dividend
Pan-African lender, United Bank for Africa Plc (UBA) bolstered earnings performance and the group has raised its final dividend payment to shareholders after an impressive outing.
In its audited full-year results filed with regulators, the bank recorded a 42.8% year-on-year growth in earnings per share (EPS) to N4.84 in 2022 from N3.39 in 2021.
The surge was supported by the growth in the top line despite large currency depreciation in its Pan-Africa markets. Consequent to healthy performance, UBA’s board of directors proposed a final dividend of N0.90, higher than N0.80 in the corresponding period last year in 2021.
The Pan African lender reported a 31.2 per cent increase in profit before tax to N201 billion for the financial year ended December 31, 2022, from N153.01 billion in 2021.
Supported by declined tax expenses, UBA saw a 43.5 per cent increase in profit after tax (PAT) to N170.2 billion in 2022 from N118.7 billion recorded the year before.
The bottom line came strong following a healthy gross earnings performance, which to N853.2 billion from N660.2 billion recorded at the end of the 2021 financial year, representing a strong 29.2 per cent growth.
The audited report showed that the group’s interest income grew by 17.5% to N557.15 billion buoyed by all contributory lines.
Specifically, income from loans and advances to customers jumped by 4.4%, investment securities grew by 27.0%, loans and advances to banks spiked by 72.2%, and cash with banks popped higher by 44.8% during the period.
In line with increased activities and funding demand, UBA interest expense grew by 12.8% to N177.66 billion driven by the higher costs of deposits from customers and borrowings
The group recorded a 226% increase in impairment charges on loans and other financial assets, primarily due to the Domestic Debt Exchange programme (DDE) in Ghana.
In the programme, UBA Ghana exchanged about N38.58 billion worth of eligible bonds for about N24.34 billion new bonds, implying an impairment loss of N14.24 billion.
Consequently, the group’s subsidiary in Ghana recorded a 74.1% decline in PAT to N2.58 billion versus N9.97 billion in the comparable year in 2021.
Impressively, non-interest income increased by 66.7% to N213.74 billion owing to the higher income generated from FX trading, net fees and commission, and investment securities trading during the period.
The group’s operating expenses increased by 25.6% as balance sheet growth and inflationary pressures drove most expense items higher – personnel expenses (+22.2%), NDIC premium (+10.3%), and AMCON levy (+12.9%).
The group’s balance sheet expanded in the period. Total assets rose 27.2 per cent, crossing the N10 trillion mark, to close at N10.9 trillion in December 2022; up from N8.5 trillion in 2021.
UBA Group Shareholders’ Funds rose to N922.1 billion, as of December 2022, achieving an impressive growth of 14.6%, compared to prior year.
In the year under consideration, UBA Group’s cost-to-income ratio dropped to 59.2 per cent, from over 60 per cent in the prior year, pointing to the group’s improving efficiency.
Commenting on the result, Group Managing Director/CEO, Oliver Alawuba, said notwithstanding the tight and challenging operating environment, UBA continues to deliver significant performance.
He said: “The group delivered record headline earnings (+29.2 per cent) and profitability (+31.2 per cent) amid significant headwinds in markets where we are present and a heightened global risk environment.
“Our record earnings, growth and robust capital levels supported higher returns for the shareholders. The group is on course to achieve its strategic goals, and we are confident we will deliver our targets.
On the outlook for the year 2023, Alawuba said: “We are strategically positioned to increase our market share in our countries of presence, with expansion to Dubai, United Arab Emirates and strong growth of our digital banking and payment businesses, which is pivotal to the evolving cashless economy in Nigeria.
“We strive to deliver increasingly attractive returns to our shareholders and continued positive impact in the geographies and economies in which we operate.” #UBA Grows EPS by 43%, Raises Dividend

