United Bank for Africa (UBA) Plc has reported exceptional financial performance for the first half of 2023, according to its audited financial report released to the Nigerian Exchange Limited (NGX),leadership reports.
Despite the challenging global macroeconomic environment and geopolitical issues in Africa, UBA Group achieved remarkable growth across its key income streams, emphasizing its commitment to expanding the contribution and market presence of its subsidiaries both locally and internationally.
Key highlights from the financial report for the first half of 2023 include:
- Profit Before Tax (PBT): UBA Group reported a significant 371 percent increase in PBT, reaching N404 billion compared to N85.75 billion in the first half of 2022. This impressive performance translated to an annualized Return on Average Equity of 57.7 percent, up from 17.1 percent the previous year.
- Profit After Tax (PAT): The bank’s PAT surged by 437.8 percent over H1 2022, reaching N378.24 billion.
- Operating Income: Operating income experienced robust growth, increasing by 206.6 percent to N783.96 billion in June 2023, compared to N255.67 billion in the same period a year earlier.
- Gross Earnings: UBA Group achieved a remarkable 164 percent growth in Gross Earnings, surpassing N981.78 billion by June 2023, up from N372.36 billion in June 2022.
- Total Assets: The bank’s Total Assets surpassed N15 trillion, reaching N15.38 trillion, marking a 41.7 percent increase compared to N10.86 trillion at the end of the previous year.
- Customer Deposits: UBA recorded a substantial 42.4 percent increase in Customer Deposits, totaling N11.14 trillion during the period under review, compared to N7.8 trillion at the end of 2022.
- Shareholders’ Funds: Shareholders’ Funds increased to N1.712 trillion, showcasing the Group’s robust internal capital generation capacity.
In line with its tradition of paying interim and final cash dividends, UBA’s Board approved an interim dividend of 50 kobo per share, representing a significant increase of over 150 percent compared to the prior year.
Mr. Oliver Alawuba, the Group Managing Director and Chief Executive of UBA, attributed the exceptional performance to the Group’s commitment to delivering value to shareholders. He highlighted UBA’s progress in digital payments, retail expansion, and the positive impact of revaluation gains resulting from the harmonization of foreign exchange rates in Nigeria.
Alawuba emphasized the significance of the Group’s diversification strategy across Africa and globally, noting that the growth of its international business, including recent expansion in the UAE, reinforces its earnings quality. He highlighted UBA’s steady growth trajectory, risk management practices, technology investments, and support for critical projects across Africa as key drivers of the Group’s success.
Alawuba concluded by affirming UBA’s role as a financial intermediary for Africa and the rest of the world, with a strong presence in Nigeria, the rest of Africa, the UAE, France, the UK, and the USA.