UBA posts strong performance as profit hits N201bn in FY 2022
By Onome Amuge
Despite the highly challenging global economic and business environment seen in 2022, Africa’s Global Bank, United Bank for Africa (UBA) Plc, was able to deliver a strong performance across major indices,recording a N201 billion profit for the full year ended December 31, 2022.
UBA’s 2022 audited financials,filed on the floor of the Nigerian Exchange Limited (NGX), showed that gross earnings increased significantly to N853.2 billion from N660.2 billion recorded at the end of the 2021 financial year, representing a 29.2 percent growth.
Notably,the bank’s total assets rose remarkably by 27.2 per cent, crossing the N10 trillion mark, to close at N10.9 trillion in December 2022, up from N8.5 trillion in 2021. The powerhouse financial institution described the figure as a significant achievement and milestone in its history
UBA also recorded a remarkable profit before tax (PBT), with a 31.2 per cent growth, to close the year under review at N200.8 billion, rising from N153.01 billion recorded at the end of the 2021 financial year. Similarly, profit after tax (PAT) grew by 43.5 per cent to N170.2 billion in 2022, compared to N118.7 billion recorded the year before.
Consequently, UBA Group shareholders’ funds rose to N922.1 billion, as at December 2022, achieving an impressive growth by 14.6 per cent, compared to the previous year.
In the year under review, UBA Group cost-to-income ratio dropped to 59.2 per cent, from over 60 per cent in prior year, pointing at the Group’s improving efficiency.
UBA also recorded a 21.4 per cent growth in loans to customers, moving up to N3.4 trillion in 2022, while customer deposits rose by 22.9 percent to N7.8 trillion, compared to N6.4 trillion recorded in the corresponding period of 2021. The bank attributed increased customer confidence, enhanced customer experience, successes from the ongoing business transformation programme and the deepening of its retail banking franchise for the improved performance.
As a way of rewarding 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, with the bank announcing that ithad paid an interim dividend of 20 kobo, based on its audited 2022 half year results.
Commenting on the financial result, Oliver Alawuba, the group managing director/CEO, remarked that UBA continues to deliver significant performance,notwithstanding the tight and challenging operating environment.
According to Alawuba,the bank has navigated unprecedented macroeconomic headwinds and made significant gains in its diversification strategy and customer 1st philosophy, while building resilience in its operations across Africa and the rest of the world to support the mission of providing superior value to its stakeholders. He added that the bank maintained its operational strategy of sharpening its risk management structure and practices to align with evolving risks.
On the outlook for the year 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.”
On his part,Ugo Nwaghodoh,UBA’s executive director, finance and risk management, said the bank’s recent performance is an indication that it remains on strong footing and is comfortably positioned to take on more opportunities in Nigeria, Africa and beyond.
According to Nwaghodoh, UBA Group’s 2022 FY performance was buoyed by strong balance sheet growth and improvement in net interest margin (NIM), as total assets and customer deposits grew 27.2 per cent and 22.9 per cent respectively, while NIM grew to 5.61 per cent from 5.57 per cent.
He also noted that the continuous rejigging of the groups’ risk management approach resulted in moderation of the non performing loan ratio from 3.6 per cent to 3.1 per cent, adding that the group continued to rely on lower cost funds, further reducing its cost funds to 2.1 per cent.
“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 noted.