. Declares N3/share final dividend
By Stanley Onyeka, Lagos
United Bank for Africa (UBA) Plc, has announced a 53.6% leap to N3.19trillion in gross earnings in its audited financial results for the full year ended December 31, 2024 (FY2024), against N2.08trillion recorded in FY2023, released today.
The full year financials saw all its major indicators witnessing significant improvement, which the bank attributed to solid core earnings.
The FY24 financials, filed with the Nigerian Exchange Limited (NGx), also showed an impressive rise in the bank’s profit after tax which rose by 26.14% to close the year at N766.6 billion, up from N607.7 billion recorded at FY2023.
Other highlights include:
Total assets closed at N30.4 trillion from N20.65 trillion in 2023 (+46.8%)
Profit before tax – N803.72 billion from N757.68 billion (+6.1%) year-on-year.
Shareholders’ Funds- N3.419 trillion rose from N2.030 trillion (+68.39%).
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 (AGM), the Bank proposed a final dividend of N3.00 kobo for every ordinary share of 50 kobo, for the financial year ended December 31, 2024. This brings the total dividend in the year to N5.00.
The final dividend is subject to the ratification of the shareholders during its upcoming AGM.
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.
Commenting, UBA’s Group Managing Director/Chief Executive Officer, Oliver Alawuba, who expressed excitement at the results, said the 2024 financial performance demonstrates the bank’s continued focus on driving earnings growth, preserving asset quality, expanding business operations and deepening market share.
He was quoted as saying: “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.”
He continued: “With total deposits increasing by 42.03% 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.”
Viable markets
Mr. Alawuba expressed excitement at the marked improvement recorded in the bank’s core earnings profile, saying that the profit was derived from high-quality income streams from funding intermediation, fees and commissions, thus reflecting strong long-term, sustainable revenues generation capacity.
“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,” he informed.
He noted that the bank’s resolve to invest continuously in technology, data analytics, product innovation, staff training and development, have collectively enhanced the customers’ experience.
On his part, UBA’s Executive Director, Finance & Risk Management, Ugo Nwaghodoh, said the bank recorded triple digit growth in net interest income, resulting in remarkable improvement in net interest margin from 6.83% in 2023 to 9.02%. There was also a strong double-digit growth in fee and commission income lines of 91.66%.
“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 said.
He explained that as the bank navigates evolving risks, its management remains focused on responsible growth, delivering customer-focused value propositions, whilst ensuring compliance with regulatory requirements in all jurisdictions.
Popularly described as Africa’s global bank, UBA 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 20 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.
