UBA Grows Profit by 26% to N766.6 Billion in FY2024
United Bank for Africa (UBA) Plc has recorded N766.6 billion as profit after tax for the financial year 2024. This represents a 26.14 per cent increase when compared to N607.7 billion posted same period of 2023.
This was made known in the bank’s audited financial results filed with the Nigerian Exchange Ltd. (NGX) on Monday. The increase is driven by the growth in the gross earnings of the bank, which rose by 53.6 per cent to N3.19 trillion.
The total assets of the bank also experienced a 46.8 per cent surge, climbing to N30.4 trillion. In spite of global economic challenges, UBA achieved a profit before tax of N803.72 billion, showing a 6.1 per cent increase.
This growth has allowed UBA to propose a final dividend of three Naira per share, bringing the total dividend for the year to five Naira, subject to shareholder approval at the upcoming Annual General Meeting.
Mr Oliver Alawuba, Group Managing Directo and Chief Executive Officer (CEO) of UBA, attributed the success to the bank’s strategic focus on earnings growth, asset quality, and market expansion.
“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.
“With total deposit increasing by 42.03 per cent 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.
“This were achieved despite prevailing macroeconomic challenges, geopolitical uncertainties, and exchange rate volatilities,” he added.
Alawuba highlighted the contribution of the bank’s diversified global network, with its “ex-Nigeria” operations now accounting for 51.7 per cent of group revenue, up from 31 per cent in 2019.
He emphasised the bank’s commitment to technology, data analytics, and product innovation to enhance customer experience.
Also, Mr Ugo Nwaghodoh, Executive Director of Finance & Risk Management, UBA, pointed to the triple-digit growth in net interest income and a 91.66 per cent increase in fee and commission income.
He also noted the bank’s strong capital adequacy ratio of 31 per cent and improved asset quality, with a non-performing loan (NPL) ratio moderating to 5.58 per cent.
Nwaghodoh said, “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.
“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.” #UBA Grows Profit by 26% to N766.6 Billion in FY2024 NGX is Bleeding, Equities Investors Exiting Positions
