The United Bank for Africa (UBA) has announced a remarkable 39.6 percent growth in gross earnings for the first half of 2024, increasing from N981.77 billion in 2023 to N1.37 trillion as of June 2024.
This achievement is particularly notable given the challenging macroeconomic climate in Nigeria and geopolitical environment where the bank operates.
In a statement on Monday addressing its audited financial results for the half year ended June 30, 2024, UBA said the bank’s interest income saw a significant rise of 134.3 percent to N1 trillion, up from N428.2 billion in June 2023.
Total assets also grew by 37.2 percent to N28.3 trillion, up from N20.6 trillion in December 2023.
Customer deposits increased by 33.7 percent to N23.2 trillion, up from N17.3 trillion at the end of 2023. Profit Before Tax (PBT) closed at N402 billion, slightly down from N403 billion in June 2023.
Profit After Tax (PAT) dropped slightly to N316 billion, down from N378 billion in 2023.
The bank’s shareholders’ funds increased by 47 percent to N2.99 trillion, up from N2.03 trillion in December 2023.
According to Oliver Alawuba, UBA’s Group Managing Director/CEO, the bank’s performance was driven by strong growth in balance sheet, transaction, and digital banking businesses across geographies, aligning with its strategic goals.
“UBA Group has continued to deliver strong double-digit growth in high quality and sustainable banking revenue streams, driven by a focused growth in balance sheet, transaction and digital banking businesses across geographies in line with our strategic goals,” Alawuba said.
“The Group’s performance has been buoyed by consistent strong growth in all core and sustainable banking income lines. Our intermediation business showed strong growth with net interest income expanding by 143 percent YoY to N675billion.
“As the Group intensifies its customer acquisition drive, we are making significant investments in technology, data analytics, product research and innovation to enhance our value proposition and customer experience.”
Ugo Nwaghodoh, Executive Director of Finance and Risk, expressed delight at the bank’s operational efficiency and plans to manage credit, information security risks, and strengthen share capital.
“Our cost optimisation provides scope for further moderation, as we explore options towards a drastic reduction of our foreign currency denominated cost components, robotizing and automation of processes and application of artificial intelligence to our operations,” Nwaghodoh said.
UBA’s board of directors declared an interim dividend of N2 per share, marking a 300 percent increase compared to the N0.50 kobo declared in 2023.
This move is in line with the bank’s culture of paying both interim and final cash dividends.
The bank’s impressive performance and strategic focus positions it for continued growth and success in the banking industry.
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