…Pays N78.7bn dividend
From Adanna Nnamani, Abuja
Despite a challenging operating space accentuated by volatile geopolitical and economic conditions, the United Bank for Africa Plc (UBA), has posted N2.08 trillion gross earnings for the year 2023.
The figure represents a 143.3 per cent increase from the previous year, the highest since the bank’s inception.
UBA also recorded a profit before tax increase by 277.2 percent to N757.68 billion and profit after tax (PAT) of N607.69 billion in the 2023 financial year.
The bank paid a final dividend of N78.7 billion, representing N2.3 per ordinary share to its over 277,000 shareholders.
Mr. Tony Elumelu, Chairman of UBA’s Board of Directors, disclosed these while presenting the bank’s financial highlights over the weekend in Abuja during its 62nd Annual General Meeting (AGM).
Elumelu further noted that the bank successfully sustained its deposit mobilisation efforts, growing total deposits by 93 per cent to N17.36 trillion from N8.99 trillion in the corresponding period of 2022.
He also said the bank’s loan book expanded by 61 per cent to N5.55 trillion from N3.44 trillion, adding that it maintained a well-structured and diversified balance sheet, with Total Assets and Shareholders’ Funds closing at N20.65 trillion and N2.03 trillion, respectively.
According to him, “Our annual report is more than a reflection of the past year’s achievements; it is a celebration of our core qualities that have driven our success: leadership, customer service, trust, innovation, and our shared values of enterprise, excellence, and execution.”
“Behind each of these figures is the everyday work of our dedicated staff, providing tangible solutions to real-world needs and delivering value to consumers, businesses, and governments.
“UBA supports consumers across Africa and globally, seeking secure and convenient payment methods; businesses requiring modern payment acceptance solutions; and issuers and acquirers in need of innovative offerings for their customers.
“Furthermore, we facilitate governments in promptly distributing payments to individuals during crucial times of need.”
Elumelu further urged shareholders to reinvest their dividends in the bank’s upcoming rights issue.
On his part, Group Managing Director/CEO of the bank, Mr Oliver Alawuba, explained that the
growth was fuelled by a significant increase in net interest income, due to a combination of a strong expansion in the loan portfolio, higher net interest margins, and a substantial contribution from foreign exchange operations.
He noted that the FX operations benefited from increased business activity and improved profit margins, while cost discipline was sustained, with operating costs up 69 per cent and in line with guidance.
“This outcome is indicative of steady business-as-usual expenses, the impact of inflationary trends, and deliberate increments related to planned strategic investments and the establishment of new business ventures. Notwithstanding the adverse macroeconomic conditions, the fundamental strength of underlying asset quality persists, as reflected in a non-performing loan (NPL) ratio of 5.85 per cent,” he stated.
On the outlook for 2024, Alawuba said that the bank is well positioned to continue its market-leading position across multiple markets and deliver on the ambition to grow.
“The bank entered 2024 from a position of strength, with proven resiliency, a powerful brand, and a strong capital position. As we begin 2024, “execution” will continue to be on the front burner, with an unrelenting focus on market leadership and excellent customer experience at all touch points.
“We have a strong customer franchise and core capabilities, including credit decisions and market-leading efficiency, which are increasingly important given inflationary pressures. Our financial strength allows us to support our customers with a clear purpose, mission, drive and focus throughout the organisation to achieve our strategic goals.”
The Group Managing Director/CEO of UBA thanked his colleagues around the world for their commitment and dedication, the customers and clients for their trust, the regulators in each of UBA’s markets for their guidance, and the shareholders for their continued support.