Victor EzejaUnited Bank for Africa (UBA) Plc, says its profit after tax rose by 26.14 per cent to ₦766.6 billion in 2024, up from ₦607.7 billion recorded at the end of the 2023 fiscal year.
This was disclosed in the bank’s audited financial results for the full year ended December 31, 2024.
Join our WhatsApp ChannelThe 2024 financials, filed with the Nigerian Exchange Limited (NGx) on Monday, showed that all its major indicators witnessed significant improvement.
The Bank’s gross earnings increased by 53.6 per cent, from ₦2.08 trillion at the end of the 2023 fiscal year to ₦3.19 trillion in 2024.
Also, UBA’s total assets experienced a remarkable 46.8 percent rise from ₦20.65 trillion in 2023, to close at ₦30.4 trillion in December 2024 just like the previous year. This signifies a milestone leap for the bank with the largest spread across the continent.
UBA reported a profit before tax of ₦803.72 billion, a 6.1 per cent rise from ₦757.68 billion at the end of the 2023 fiscal year, despite the extremely difficult global economic and commercial environment.
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Consequently, UBA Group Shareholders’ Funds rose from N2.030 trillion as at December 2023 to close the 2024 financial year at N3.419 trillion, achieving an impressive growth of 68.39 percent.
As a result of the impressive performance and in fulfilment of the promise made by the UBA Group Chairman, Tony Elumelu, to shareholders at the last Annual General Meeting, the Bank proposed a final dividend of ₦3.00 for every ordinary share of 50 kobo, for the financial year ended 31 December 2024.
This brings the total dividend in the year to ₦5.00. The final dividend is subject to the ratification of the shareholders during its upcoming Annual General Meeting (AGM).
Oliver Alawuba, Group Managing Director/Chief Executive Officer, UBA, expressed excitement about the results and said the bank’s continued focus on boosting earnings growth, maintaining asset quality, growing business operations, and gaining market share is evident in the 2024 financial performance.
“With total deposit increasing by 42.03 percent 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 and were achieved despite prevailing macroeconomic challenges, geopolitical uncertainties, and exchange rate volatilities,” Alawuba further stated.
Excited by the notable improvement in the bank’s core earnings profile, the UBA GMD clarified that the profit is derived from high-quality revenue streams from funding intermediation, fees, and commissions, demonstrating a strong capacity for long-term, sustainable revenue generation.
“Our ex-Nigeria (Rest of Africa & International) operations have expanded significantly over the past five years, now contributing 51.7% of Group revenue, up from 31% in 2019, delivering diversification benefits and further boosting long-term shareholder value. This will continue to grow, as we further explore strategic markets that align with our overall vision. We are currently upgrading our business scope and authorization in France, and considering other viable markets in the short to medium term,” Alawuba noted.
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He expressed optimism that the bank’s commitment to ongoing investments in data analytics, technology, product innovation, and employee training and development will lead to an improvement in the overall experience of their clients.
Ugo Nwaghodoh, Executive Director, Finance & Risk Management at UBA, stated that the bank’s net interest income increased by triple digits, leading to a notable improvement in the net interest margin from 6.83 percent in 2023 to 9.02 percent. Additionally, the bank’s fee and commission income lines saw a robust double-digit growth of 91.66 percent.
“UBA Group continues to demonstrate strong capital levels, with shareholders’ funds growth of 68.4% to N3.42 trillion and a solid capital adequacy ratio of 31.0%., and as we defensibly position the portfolio to navigate prevailing global and regional macroeconomic upheavals, asset quality improved, with NPL ratio moderating to 5.58%, with strong provision coverage at 81%”, Nwaghodoh noted.
He clarified that the bank’s management is committed to responsible expansion and customer-focused value offerings while maintaining regulatory compliance across all jurisdictions as it manages changing risks.
United Bank for Africa is one of the largest employers in the financial sector on the African continent, with 25,000 employees group wide and serving over 45 million customers globally. Operating in twenty African countries and the United Kingdom, the United States of America, France and the United Arab Emirates, UBA provides retail, commercial and institutional banking services, leading financial inclusion and implementing cutting edge technology.
Victor Ezeja is a passionate journalist with six years of experience writing on economy, politics and energy. He holds a Masters degree in Mass Communication.
