United Bank For Africa Earnings Grow By 40% To N1.37 Trillion In H1 2024
...Hinges Performance On Balance Sheet Growth, Transactions, Digital Banking Businesses
By Edu Abade
United Bank for Africa (UBA) Plc has released its audited financial results for the half-year ended June 30, 2024, showcasing impressive performance across key financial indicators.
The bank recorded a 39.6 percent increase in gross earnings, rising from N981.77 billion in 2023 to N1.371 trillion in June 2024. Interest income surged by 134.3 percent to N1.003 trillion, up from N428.2 billion recorded in June last year.
Total assets grew by 37.2% from N20.6 trillion in December 2023 to N28.3 trillion, while customer deposits jumped by 33.7% to N23.2 trillion, up from N17.3 trillion recorded at the end of 2023.
Profit before tax (PBT) stood at N401.6 billion, slightly down from N403 billion in June 2023, while profit after tax (PAT) decreased from N378 billion to N316 billion.
However, shareholders’ funds increased by 47 percent from N2.03 trillion in December 2023 to N2.99 trillion.
UBA’s Group Managing Director and Chief Executive Officer, Oliver Alawuba, attributed the bank’s performance to its focus on growth in balance sheet, transaction and digital banking businesses across geographies.
“Our intermediation business showed strong growth with net interest income expanding by 143 percent YoY to N675 billion,” Alawuba said.
The bank has declared an interim dividend of N2.00 per share, representing a 300% increase compared to the N0.50 declared in the same period of 2023.
Executive Director Finance and Risk, Ugo Nwaghodoh, expressed delight at the bank’s operational efficiency, with a cost-to-income ratio normalizing around the 50 percent range.
UBA plans to focus on managing credit, operational, cyber, and information security risks while exploring options to reduce foreign currency denominated costs.
With presence in 20 African countries and offices in New York, London, Paris and Dubai, UBA connects people and businesses across Africa through retail, commercial, and corporate banking services.
UBA’s key financial highlights for the half-year ended June 30, 2024, include gross earnings of N1.371 trillion, up 39.6 percent from N981.77 billion in 2023, as interest income rose to N1.003 trillion by134.3 percent from N428.2 billion in June 2023.
Total assets stood at N28.3 trillion, up 37.2 percent from N20.6 trillion in December 2023, while customer deposits amounted to N23.2 trillion, up 33.7 percent from N17.3 trillion in December 2023.
Profit before tax was N401.6 billion, down from N403 billion in June 2023, while profit after tax was N316 billion, down from N378 billion in June 2023, while shareholders’ funds increased by 47 percent to N2.99 trillion from N2.03 trillion in December 2023.
