Total Assets Surge by 37.2% to N28.3 Trillion; Customer Deposits Reach N23.2 Trillion, Rising 34%
United Bank for Africa (UBA) Plc has reported a robust performance for the half year ended June 30, 2024, with significant growth across key financial indicators.
The bank’s audited financial results, released to the Nigerian Exchange Limited (NGX) on Monday, showcased double-digit growth in gross earnings and operating incomes, highlighting UBA’s resilience in the face of challenging global macroeconomic conditions and geopolitical tensions in key African markets.
UBA’s gross earnings surged by 39.6%, rising from N981.77 billion in the same period last year to N1.371 trillion in June 2024. Interest income saw an even more remarkable increase, climbing 134.3% to N1.003 trillion from N428.2 billion in June 2023.
Total assets also experienced robust growth, expanding by 37.2% from N20.6 trillion in December 2023 to N28.3 trillion as of June 2024.
Customer deposits followed suit, rising 33.7% to N23.2 trillion, up from N17.3 trillion at the end of 2023. The bank’s profit before tax (PBT) remained steady at N402 billion, just shy of the N403 billion recorded in the first half of 2023.
However, profit after tax (PAT) dipped slightly, falling from N378 billion to N316 billion in the period under review.
Despite this minor drop in PAT, shareholders’ funds saw a significant boost, increasing by 47% from N2.03 trillion in December 2023 to N2.99 trillion.
In recognition of its strong performance, UBA’s Board of Directors declared an interim dividend of N2.00 per share, marking a 300% increase from the N0.50 declared during the same period last year.
UBA’s Group Managing Director/CEO, Oliver Alawuba, emphasized the bank’s focus on delivering consistent value to shareholders.
“UBA Group has continued to deliver strong double-digit growth in high-quality and sustainable banking revenue streams, driven by focused growth in our balance sheet, transaction, and digital banking businesses across geographies,” Alawuba said.
He further highlighted that the group’s performance was bolstered by substantial growth in its core banking income, noting that net interest income expanded by 143% year-on-year to N675 billion.
Looking ahead, Alawuba reiterated the bank’s commitment to customer acquisition and significant investments in technology, data analytics, and product innovation to enhance customer experience.
Ugo Nwaghodoh, UBA’s Executive Director of Finance & Risk, praised the bank’s operational efficiency, as reflected in its cost-to-income ratio stabilizing around the 50% range.
He added that UBA would continue optimizing costs, with a focus on reducing foreign currency-denominated expenses and leveraging automation and artificial intelligence to streamline operations.
Nwaghodoh also outlined the bank’s efforts to manage heightened risks related to credit, operations, and cybersecurity while remaining aligned with its moderate risk appetite and sustainability goals.
With over 35 million customers across 1,000 offices in 20 African countries, and a presence in key global financial hubs like New York, London, Paris, and Dubai, UBA continues to be a leading player in Africa’s banking sector, providing innovative financial services and cross-border payment solutions.
