UBA Shareholders to Get N2 Interim Dividend
United Bank for Africa (UBA) Plc has declared to pay shareholders N2 dividend per share in the first half of the financial year 2024. The group net interest income climbed by more than 142% year on year to about N675 billion in the first half of the year, from N278 billion in the comparable period in 2023.
At N18.699 billion, UBA operating income was about 102% above the previous level posted in the first half of 2023. Pretax profit declined by 51 basis points, or 0.51%, to settle at about N402 billion in the period.
UBA is offering to pay N2 interim dividend to shareholders, subject to approval. Earnings breakdown showed that interest income grew by 134.3% year on year to N1.00 trillion, driven by gains recorded across all the major lines.
Specifically, the group generated higher income from investment securities, loans and advances to customers, loans and advances to banks, and cash & bank balances.
Expectedly, the growth in these income lines was induced by a combination of the higher yield environment and the rise in the group’s interest-earning assets, up by +45.2% to N23.79 trillion.
UBA recorded a 119.0% year on year growth in interest expense to N328.94 billion due to the higher cost incurred on deposits from customers, borrowings and deposits from financial institutions.
Consequent to the faster growth in interest income than interest expenses, the group recorded a 142.6% year on year expansion in net interest income to N674.62 billion.
Non-interest income declined during the period by 49.1% year on year to N257.69 billion as the fair value loss on derivatives compromised the gains from foreign exchange revaluation, net fees and commission income, FX trading, and investment securities.
However, the stellar growth in interest income was sufficient to offset the decrease in non-interest income, causing operating income to rise by 38.4% year on year to N872.10 billion.
Overall, profit before tax declined by 0.5% year on year to N401.58 billion. Eventually, the group’s profit after tax settled at N316.36 billion, down by 16.4% year on year, amid the higher income tax expense. # UBA Shareholders to Get N2 Interim Dividend Nigeria Achieves Milestone in Power Supply- Adelabu
