United Bank for Africa (UBA) has reported a remarkable 40% increase in gross earnings, achieving N1.37 trillion in the first half of 2024, a significant rise from N981.77 billion during the same period last year. The banking group, which operates across multiple African nations, also announced an interim dividend of N2 per share, amounting to a whopping 300% increase compared to the N0.50 dividend declared in the corresponding period of 2023. These impressive figures were highlighted in its audited financial results for the first half of the year, concluding on June 30, 2024, and were filed with the Nigerian Exchange Limited.
In the detailed analysis of UBA’s financial performance, the data showcases a staggering 134.3% surge in interest income, which shot up to N1.003 trillion from N428.2 billion recorded in June of the previous year. Additionally, the bank experienced substantial growth in total assets, which climbed 37.2%, rising from N20.6 trillion at the end of December 2023 to N28.3 trillion. Customer deposits also witnessed robust growth, increasing by 33.7% to N23.2 trillion. Despite the impressive overall growth, the profit before tax slightly declined to N402 billion, down from N403 billion in June 2023, while pre-tax profit dipped from N378 billion to N316 billion in the same timeframe.
The UBA Group’s shareholders’ funds experienced a notable rise, expanding by 47% from N2.03 trillion in December 2023 to N2.99 trillion, reflecting the bank’s commitment to enhancing shareholder value. Oliver Alawuba, the Group Managing Director and CEO, expressed confidence in the bank’s capacity for sustainable growth in revenues. He emphasized UBA’s strategic focus on developing high-quality banking services through innovation, digitalization, and a robust growth strategy across its various operations in Africa and internationally.
UBA’s Executive Director of Finance & Risk, Ugo Nwaghodoh, highlighted the bank’s commitment to operational efficiency, asserting that its cost-to-income ratio remains stable around the 50% mark. He remarked on the bank’s efforts to optimize costs, aiming for potential reductions in foreign currency-denominated expenses through process automation and the integration of artificial intelligence. Nwaghodoh further elaborated on the bank’s focus on managing various risks — including credit, operational, cyber, and information security risks — while ensuring it aligns with sustainability goals.
UBA is strategically positioned with a customer base of approximately 35 million, facilitated by 1,000 business offices and customer touchpoints across 20 African countries. Moreover, the bank maintains a global presence in key cities such as New York, London, Paris, and Dubai. In commemoration of its 75th anniversary, UBA organized a reward initiative that benefited 30 customers, distributing over N17 million in the latest promotional draw. This initiative not only reinforces UBA’s commitment to customer satisfaction but also celebrates its long-standing legacy in the banking sector.
In summary, UBA’s impressive financial achievements in the first half of 2024 underscore its effective strategies in enhancing customer experience and revenue generation. With a focus on technology investments and operational efficiency, the bank is positioned for sustained growth, even amidst potential challenges. The continued strengthening of shareholder value amidst robust balances and a significant customer base reflects UBA’s resilience and adaptability in the competitive banking landscape of Africa and beyond.
