Strong core earnings help UBA to N3.19trn, up 53.6% YoY
- Offers shareholders N3.00 final dividend
Onome Amuge
Oliver Alawuba, managing director/chief executive officer, UBA Group
United Bank for Africa (UBA) Plc, has released its audited financial results for the full year ended December 31, 2024, revealing solid core earnings that fueled significant improvements across all major indicators, driving growth in profitability and returns.
The Tier-1 bank, dubbed “Africa’s Global Bank”, saw its gross earnings appreciate 53.6 percent from N2.08 trillion in 2023 to N3.19 trillion in 2024, solidifying its position as one of the continent’s fastest-growing financial institutions.
The financials, filed with the Nigerian Exchange Limited (NGX), showcased a 26.14 percent year-on-year increase in profit after tax, from N607.7 billion in 2023 to N766.6 billion at the end of the 2024 fiscal year.
United Bank for Africa Plc continued its impressive streak of growth in 2024, with its total assets expanding by 46.8 percent to N30.4 trillion, up from N20.65 trillion in 2023.
The bank’s financials indicated that despite the highly challenging global economic and business environment, it was able to record a profit before tax of N803.72 billion representing a 6.1 percent increase from N757.68 billion recorded at the end of the 2023 financial year.
As a result of the bank’s strong performance across key financial metrics, UBA Group shareholders’ funds saw a 68.39 percent growth in 2024, rising from N2.030 trillion as of December 2023 to N3.419 trillion by the end of the financial year.
Following a remarkable year of sustained growth and profitability, UBA Group Chairman Tony Elumelu delivered on his promise to shareholders, proposing a final dividend payout of N3.00 per ordinary share of 50 kobo, for the financial year ended December 31, 2024.
The proposed dividend, if approved by shareholders at the upcoming Annual General Meeting (AGM), would result in a total dividend payout of N5.00 per ordinary share for the year, representing a substantial return on investment for shareholders.
Oliver Alawuba, UBA’s group managing director/chief executive officer, who expressed excitement at the results, stated that the 2024 financial performance demonstrates the bank’s continued focus on driving earnings growth, preserving asset quality, expanding business operations and deepening market share.
Alawuba also disclosed that the bank’s continued investment in its highly diversified global network has enabled it to deliver high quality, consistent earnings.
According to him, businesses have been able to grow product and service income and expand the group’s deposit base, allowing the group to increase earnings, while maintaining strong spreads and margins.
“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 highlighted.
The GMD also dwelled on the marked improvement recorded in the bank’s core earnings profile, as he explained that the profit is 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 added.
In light of UBA’s remarkable financial performance, Alawuba emphasised the bank’s dedication to investing in cutting-edge technology, advanced data analytics, innovative product development, and the ongoing training and development of its staff, with a view to enhancing the overall customer experience.
Ugo Nwaghodoh, UBA’s executive director of finance & risk management, added that the bank’s strong performance was further underscored by a triple-digit surge in net interest income, resulting in a significant improvement in net interest margin from 6.83 percent in 2023 to 9.02 percent in 2024.
Nwaghodoh also highlighted the strong double-digit growth in fee and commission income lines, which expanded by 91.66 percent year-on-year, reinforcing the bank’s diverse revenue streams and providing a solid foundation for future growth and profitability.
“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 stated.
He further emphasised 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.