United Bank for Africa (UBA) Plc has announced impressive financial results for the 2024 financial year, showcasing robust growth across key performance indicators. The bank’s profit before tax surged to N803.73 billion, a remarkable achievement driven by strong core earnings and enhanced operational efficiency. This translated to a profit after tax of N766.57 billion, a significant jump from N607.69 billion in the previous year. UBA’s gross earnings also witnessed a substantial increase, reaching N3.19 trillion, a 53.6% rise compared to N2.08 trillion in 2023. This robust performance underscores the bank’s ability to navigate macroeconomic challenges and capitalize on growth opportunities. The impressive financial outcome is further reflected in the growth of the group’s total assets, which soared by 46.8% to N30.4 trillion from N20.65 trillion in 2023. This expansion signifies UBA’s increasing market share and solidifies its position as a leading financial institution.
UBA’s strong financial performance has allowed the bank to reward its shareholders generously. The group has proposed a final dividend of N3.00 per share, bringing the total dividend for the year to N5.00. This substantial dividend payout underscores the bank’s commitment to delivering value to its shareholders and fulfilling the promise made by the Group Chairman, Tony Elumelu, at the previous Annual General Meeting. This gesture reflects the bank’s confidence in its future prospects and its commitment to sharing its success with its investors. The impressive dividend payout is a testament to the bank’s robust financial health and its dedication to shareholder value creation.
UBA Group’s Managing Director/Chief Executive Officer, Oliver Alawuba, attributed the strong performance to high-quality income streams derived from funding intermediation, fees, and commissions. He emphasized the bank’s continued investment in its global network, which has enabled it to generate robust earnings while expanding its customer base. A key driver of this growth has been the significant increase in total deposits, which rose by 42.03% from N17.4 trillion in 2023 to N24.7 trillion in 2024. This growth is broad-based across all core businesses, demonstrating the bank’s diversified income streams and its ability to attract and retain customers despite macroeconomic headwinds.
A significant aspect of UBA’s growth strategy is its expanding international presence. Operations outside Nigeria have contributed significantly to the group’s overall revenue, accounting for 51.7% in 2024, a substantial increase from 31% in 2019. This diversification strategy has proven successful in mitigating risks and boosting long-term shareholder value. The bank plans to further deepen its international footprint, particularly in France and other strategic markets. This expansion will enable UBA to tap into new growth opportunities and diversify its revenue streams further, solidifying its position as a pan-African and global financial institution.
UBA’s Executive Director, Finance & Risk Management, Ugo Nwaghodoh, highlighted the bank’s robust financial position, underscored by triple-digit growth in net interest income and a remarkable improvement in net interest margin from 6.83% in 2023 to 9.02% in 2024. Fee and commission income also experienced strong double-digit growth of 91.66%. These positive trends reflect the bank’s effective management of its assets and liabilities, its ability to generate income from diverse sources, and its focus on operational efficiency.
Furthermore, UBA maintains a strong capital position, with shareholders’ funds growing by 68.4% to N3.42 trillion and a solid capital adequacy ratio of 31.0%. The bank has also demonstrated improved asset quality, as evidenced by a moderating non-performing loan (NPL) ratio of 5.58% with strong provision coverage at 81%. These figures indicate UBA’s prudent risk management practices and its commitment to maintaining a healthy balance sheet, positioning it well to navigate evolving global and regional macroeconomic challenges. With a presence in 20 African countries, the UK, the US, France, and the UAE, and serving over 45 million customers globally, UBA continues to strengthen its financial position, expand its reach, and deliver customer-focused value propositions while adhering to regulatory requirements across all its operating jurisdictions.
