UBA announces record gross earnings; Capitalization exceeding N2 trillion
United Bank for Africa (UBA) Plc, led by its Group Managing Director/CEO Oliver Alawuba, disclosed its robust financial performance at the bank’s full year 2023 investor conference call held in Lagos over the weekend.
Alawuba revealed that UBA is impressively capitalized, boasting shareholders’ funds exceeding N2 trillion. He assured stakeholders that the bank would raise the required capital component in line with directives from the Central Bank of Nigeria (CBN).
In the face of challenging global economic conditions, Alawuba emphasized that UBA delivered yet another year of remarkable earnings. The bank’s gross earnings soared year-on-year (y-o-y) by 143.3 per cent to N2.1 trillion, while profit before tax surged by 277.2 per cent to N757.7 billion, marking the highest levels in its history.
Explaining the factors driving this growth, Alawuba attributed it to a substantial increase in net interest income, fueled by a strong expansion in the loan portfolio, higher net interest margins, and significant contributions from foreign exchange operations. The bank’s foreign exchange activities benefited from increased business activity and improved profit margins.
Despite facing operating costs that rose by 69 per cent, primarily due to the impact of foreign operations and currency-related expenses, UBA maintained a strong underlying asset quality, reflected in a Non-Performing Loan (NPL) ratio of 5.85 per cent.
Ugo Nwaghodoh, the bank’s Executive Director of Finance and Risk Management, highlighted the impressive financial indicators, stating that operating income surged by 168 per cent to N1.6 trillion. He pointed out that despite inflation and currency devaluation, UBA saw a rise in profit before tax to N758 billion, total assets grew to N20.7 trillion, and deposits increased to N17.4 trillion.
Looking ahead to the financial year 2024, Nwaghodoh provided guidance, forecasting a 20 per cent growth in deposits and loans, a cost of risk of about 3.8 per cent, a non-performing loan ratio of about 4.5 per cent, and a return on average equity of about 30 per cent, among other key metrics.
In addition to its financial achievements, UBA received external recognition, including being named African Champion of the Year 2023 at the Africa Financial Industry Summit (AFIS) in Togo and Bank of the Year Africa 2023 by The Banker, United Kingdom. Furthermore, eight UBA subsidiaries across Africa were awarded Bank of the Year honors by The Banker, United Kingdom.
