. As Shareholders’ Funds hit N2.0trn
By Stanley Onyeka, Lagos
Africa’s global bank, United Bank for Africa (UBA) Plc, yesterday, announced a 143% jump in gross earnings to N2.08 trillion, up from the N853.2 billion recorded at the end of 2022.
In its full year (FY) 2023 audited financial statement ending December 31, 2023, filed at Nigerian Exchange Limited (NGX) on Monday, UBA showed an impressive performance across various indices.
The banks’ total assets also rose remarkably by 90.22%, doubling the N10 trillion mark, to close at N20.65 trillion in December 2023; up from N10.86 trillion in 2022, which it described as “a very significant achievement and milestone in the history of the financial powerhouse.”
UBA also noted that despite the highly challenging global economic and business environment, it recorded an exponential growth of 277% in pretax profit to close 2023 at N758 billion, against N201 billion recorded a year earlier.
Similarly, profit after tax (PAT) leapt by 257% to N608 billion from N170 billion in 2022.
Consequently, UBA Group Shareholders’ Funds rose from N922 billion as at December 2022 to N2.0trillion year-on-year (y/y) representing a 120.2% growth.
Additionally, the Group’s cost-to-income ratio dropped from 59.2%, in 2022, to 37.2% indicative of a more prudent and efficient management.
In fulfilment of the promise made by the UBA Group Chairman, Tony Elumelu, to shareholders at the last Annual General Meeting (AGM), the Bank proposed a final dividend of N2.30 kobo for every ordinary share of 50 kobo, for the financial year ended December 31, 2023. The final dividend is subject to the shareholders’ ratification during its upcoming general meeting.
Furthermore, UBA recorded a 61.3% growth in loans to customers, moving up to N5.5 trillion in 2023, whilst customer deposits rose 90.31% to N14.9 trillion, compared to N7.8 trillion recorded in the corresponding period of 2022.
This reflects increased customer confidence, enhanced customer experience, successes from the ongoing business transformation programme and the deepening of its retail banking franchise, the bank added.
Driven by our customer service and execution-led delivery model, we will continue to expand our market share and create value for our shareholders and meet the expectations of our various stakeholders.
Unprecedented results
Commenting on the results, UBA’s Group Managing Director/Chief Executive Officer, Oliver Alawuba, said: “I am very pleased with the unprecedented results achieved by our Group in FY2023. The Group made a profit before tax of N758 billion, from N201 billion in the prior year. The balance sheet also grew to N20.7 trillion from N10.8 trillion in the previous year.
“The Group’s shareholder’s funds crossed N2 trillion from N922 billion in 2022, whilst total assets crossed the N20 trillion mark (90.2% YoY growth). The Group is well positioned for further business expansion in FY2024, having closed FY2023 with Capital Adequacy Ratio of 32.6%.”
Mr. Alawuba added that UBA’s diversified business model (Pan-African and International strategy) is justified by the contribution of its ex-Nigeria business to the Group’s results and reinforces its resolve to expand its market share of customers, funding, digital and transaction banking businesses across Africa.
“Driven by our customer service and execution-led delivery model, we will continue to expand our market share and create value for our shareholders and meet the expectations of our various stakeholders,” the GMD stated.
UBA’s Executive Director, Finance & Risk Management, Ugo Nwaghodoh, noted that 2023 was a particularly eventful year, with galloping inflation and currency depreciation ravaging key markets, amidst pockets of regional conflicts and security challenges.
“I am delighted however at the strong growth in earnings and profitability recoded in the year. The Group conservatively set up significant impairment reserves against its overall risk assets portfolio considering the latent impact of the macroeconomic headwinds on our credit portfolio. Consequently, Cost of Risk grew to 3.09% from 0.63% in the prior year,” Mr. Nwaghodoh noted.
On the expectation for the 2024 financial year, he said: “The Group remains fervently committed to sustainable growth and maintaining its strong compliance and risk management practices culture even as we drive our business through the next phase of growth.”
UBA offers banking services to over 35 million customers, across 1,000 business offices and customer touch points in 20 African countries.
With presence also in New York, London, Paris and Dubai, the bank said it is connecting people and businesses across Africa through retail, commercial and corporate banking, innovative cross-border payments and remittances, trade finance and ancillary banking services.
