UBA posts N201bn pre-tax profit FY 2022, declares 90 kobo dividend

United Bank for Africa (UBA) Plc has posted N200.8 billion profit before tax for the 2022 financial year, an increase of 31.2% over the N153.01 billion recorded at the end of 2021.

Profit after tax (PAT) grew by 43.5% to N170.2 billion in 2022, compared to N118.7 billion recorded the year before, which came amid a highly challenging global economic and business environment. 

As a reward to its shareholders, the Bank proposed a final dividend of 90 kobo for every ordinary share of 50 kobo, for the financial year ended December 31, 2022.

The final dividend which is subject to the ratification of the shareholders during its upcoming Annual General Meeting (AGM) will bring the total dividend for the year to N1.10 per share, as the Bank had paid an interim dividend of 20 kobo, based on its audited 2022 half year results.

These are contained in the Bank’s audited financial results for the full year 2022 financials, filed at the Nigerian Exchange Limited (NGX) yesterday, which showed impressive performance across major indices.

Gross earnings rose significantly to N853.2billion from N660.2billion recorded at the end of the 2021 financial year, a 29.2% growth.

Total assets also grew by 27.2% to cross the N10trillion mark, closing at N10.9trillion in December 2022; up from N8.5trillion in 2021. “This is a very significant achievement and milestone in the history of the powerhouse financial institution,” UBA said.

Furthermore, UBA Group Shareholders’ Funds rose to N922.1billion, as at December 2022, 14.6% higher compared to the prior year.

Cost-to-income ratio dropped to 59.2% from over 60% in 2021, pointing to the Group’s improving efficiency.

In its support for greater economic activities, UBA recorded a 21.4% growth in loans to customers, moving up to N3.4 trillion in 2022, whilst customer deposits improved by 22.9% to N7.8 trillion, compared to N6.4trillion recorded in the corresponding period of 2021.

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 said.

We have navigated unprecedented macroeconomic headwinds and made significant gains in our diversification strategy and Customer 1st philosophy…

Significant performance

Commenting on the result, the Group Managing Director/CEO, Oliver Alawuba, was quoted as saying that notwithstanding the tight and challenging operating environment, UBA continues to deliver significant performance.

He said: “The Group delivered record headline earnings (+29.2%) and profitability (+31.2%) amid significant headwinds in markets where we are present and a heightened global risk environment.

“Our record earnings, growth, and robust capital levels supported higher returns for the shareholders. The Group is on course to achieve its strategic goals, and we are confident we will deliver our targets.

“We have navigated unprecedented macroeconomic headwinds and made significant gains in our diversification strategy and Customer 1st philosophy as we build resilience in our operations across Africa and the rest of the world to support the mission of providing superior value to our stakeholders.

“The Group’s Profit after Tax increased by 43.5% to N170.3billion, with underlying growth in our key income lines and moderation in our cost of fund, resulting in robust growth of 14.6% in the Group’s Shareholders’ Funds and stronger liquidity. We continued to sharpen our risk management structure and practices to align with evolving risks.”

On the outlook for 2023, Alawuba said: “We are strategically positioned to increase our market share in our countries of presence, with expansion to Dubai, United Arab Emirates and strong growth of our digital banking and payment businesses, which is pivotal to the evolving cashless economy in Nigeria.

“We strive to deliver increasingly attractive returns to our shareholders and continue a positive impact in the geographies and economies in which we operate.”

UBA’s Executive Director, Finance and Risk Management, Ugo Nwaghodoh, said going by this recent performance, UBA remains on strong footing and is comfortably positioned to take on more opportunities in Nigeria, Africa and beyond.

“UBA Group’s 2022FY performance was buoyed by strong balance sheet growth and improvement in Net interest margin, as Group’s Total Assets and customer deposits grew 27.2% and 22.9% respectively, whilst NIM grew to 5.61% from 5.57%.

“The continuous rejigging of the Groups’ risk management approach resulted in moderation of the NPL ratio, from 3.6% to 3.1%. The Group continued to rely on lower cost funds, further reducing its cost funds to 2.1%.”

“We are delighted with the strategic progress we have made in FY22 riding on our customers’ trust, the dedication of our people, and the support of our wider partners and stakeholders.

“The bank remains committed to its business development drive, prudent risk management practices, and we are optimistic to deliver best value for our stakeholders in the days ahead,” he said.

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