Full Year 2023: UBA’s profit hits N758bn, a record 277 per cent increase

 

…Bank declares N2.30k final dividend to shareholders

 

United Bank for Africa (UBA) Plc has released its audited financial results for the full year ended December 31, 2023, recording a laudable profit before tax (PBT) of N757.7 billion.

The figure represents an exponential growth of 277 per cent, rising from N201 billion recorded at the end of the 2022 financial year despite the highly challenging global economic and business environment.

In the unprecedented performance, UBA, Africa’s Global Bank, also grew its profit after tax (PAT) by 257 per cent from N170 billion in 2022, to N608 billion.

The 2023 financials, filed by the bank at Nigerian Exchange Limited (NGx) on Monday showed
exceptional performance across all major indicators.

An impressive leap was recorded in gross earnings, which climbed from N853.2 billion at the end of 2022 to N2.08 trillion in 2023, representing a strong 143 per cent growth.

The banks’ total assets also rose remarkably by 90.22 per cent, doubling the N10 trillion mark, to close at N20.65 trillion in December 2023; up from N10.86 trillion in 2022. This leap remains a very significant achievement and milestone in the history of the financial powerhouse.

UBA Group Shareholders’ Funds rose from N922 billion as of December 2022 to close the 2023 financial year at N2.0tn, achieving an impressive growth of 120.2%, compared to the previous year.

In the year under review, UBA Group’s cost-to-income ratio dropped from 59.2%, in 2022, to 37.2 per cent pointing to the Group’s improving efficiency.

In fulfilment of the promise made by the UBA Group Chairman, Tony Elumelu, to shareholders at the last Annual General Meeting, the bank proposed a final dividend of N2.30 kobo for every ordinary share of 50 kobo, for the financial year ended December 31, 2023. The final dividend is subject to the ratification of the shareholders during its upcoming annual general meeting (AGM).

Also noteworthy is that UBA recorded a 61.3 per cent growth in loans to customers, moving up to N5.5 trillion in 2023, whilst customer deposits improved by 90.31 per cent to N14.9 trillion, compared to N7.8 trillion recorded in the corresponding period of 2022. The feat reflects increased customer confidence, enhanced customer experience, successes from the ongoing business transformation programme and the deepening of its retail banking franchise.

UBA’s Group Managing Director/Chief Executive Officer, Oliver Alawuba, commented on the performance: “I am very pleased with the unprecedented results achieved by our Group in FY2023. The Group made a profit before tax of N758billion, from N201billion in the prior year. The balance sheet also grew to N20.7 trillion from N10.8 trillion in the previous year.

He said, “The Group’s shareholder’s funds crossed N2trillion from N922bn in 2022, whilst total assets crossed the N20 trillion mark (90.2% YoY growth). The Group is well positioned for further business expansion in FY2024 having closed FY2023 with a Capital Adequacy Ratio of 32.6%.”

He added that the bank’s diversified business model (Pan-African and International strategy) is justified by the contribution of its Ex-Nigeria business to the Group’s results and reinforces its resolve to expand our market share of customers, funding, digital and transaction banking businesses across Africa.

“Driven by our customer service and execution-led delivery model, we will continue to expand our market share and create value for our shareholders and meet the expectations of our various stakeholders,” the GMD stated.

UBA’s Executive Director, Finance and Risk Management, Ugo Nwaghodoh, said the 2023 full year was a particularly eventful year, with galloping inflation and currency depreciation ravaging key markets, amidst pockets of regional conflicts and security challenges.

“I am delighted however at the strong growth in earnings and profitability recorded in the year. The Group conservatively set up significant impairment reserves against its overall risk assets portfolio considering the latent impact of the macroeconomic headwinds on our credit portfolio. Consequently, the Cost of Risk grew to 3.09% from 0.63% in the prior year,” Nwaghodoh noted.

On the expectation for the 2024 financial year, he said, “The Group remains fervently committed to sustainable growth and maintaining its strong compliance and risk management practices culture even as we drive our business through the next phase of growth.”

United Bank for Africa Plc is a leading pan-African financial institution, offering banking services to more than thirty-five (35) million customers, across 1,000 business offices and customer touch points in 20 African countries. With a presence in New York, London, Paris and Dubai, UBA is connecting people and businesses across Africa through retail, commercial and corporate banking, innovative cross-border payments and remittances, trade finance and ancillary banking services.