Prime Business AfricaAfter an impressive period in 2023, which saw the United Bank for Africa (UBA) record an impressive 256.88 percent increase in profit after tax (PAT), the company’s net income growth slowed significantly to 26.14% in 2024.
According to an analysis of the company’s consolidated and separate financial statements for the year ending December 31, 2024, by Prime Business Africa, the net income growth rate recorded last year is also lower than the 43.47 percent recorded in 2022.
Join our WhatsApp ChannelIn 2023, UBA reported a N607.69 billion profit after tax, significantly above the N170.27 billion reached in 2022, after the company’s net trading and foreign exchange (FX) gain skyrocketed from N72.15 billion to N659.25 billion within the same period, indicating an increase of 813.73 percent.
However, the PAT grew by 26.14 percent in 2024 to N766.56 billion from N607.69 billion recorded in the corresponding period of 2023, on the back of a 72.42 percent decline in net trading and FX gain, which settled at N181.76 billion last year.
The 26.14 percent growth in net income was the second lowest in the industry- out of the 10 deposit money banks (DMBs) that have released their financial statements – behind the 21.15 percent growth recorded by First City Monument Bank (FCMB).
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During the same period, Fidelity Bank recorded a 179.63 percent increase in PAT; Ecobank reported 179.25 percent growth; Wema Bank 139.73 percent; First HoldCo 138.86 percent; Guaranty Trust Holding Company (GTCO) 88.60 percent; Sterling Financial Holdings Company 73.84 percent; Stanbic IBTC 60.23 percent; and Zenith Bank 52.58 percent.
Furthermore, UBA reported an interest income of N2.37 trillion in 2024, which is 120.39 percent higher than the N1.07 trillion generated in the previous year – however, analysis showed that the increase fell behind that of interest expense.
Interest income is generated from interest on loans and advances to banks and customers, treasury bills, bonds and promissory notes.
The financial institution’s interest expense, which is the cost of holding deposits from other banks and customers, rose by 128.17 percent year-on-year, from N367.80 billion in 2023 to a whopping N839.25 billion the next year.
Consequently, the financial institution closed the reviewed period with a net interest income of N1.53 trillion compared to the N707.54 billion reported in 2023.
