In a remarkable financial achievement, United Bank for Africa (UBA) Plc has reported an astounding 371% surge in profit before tax (PBT), soaring to a substantial N404 billion during the first half of 2023, compared to the N85.75 billion recorded in the same period in 2022.
This exceptional surge in profitability has resulted in an impressive annualized Return on Average Equity (ROAE) of 57.7%, marking a remarkable leap from the 17.1% ROAE reported a year earlier. These remarkable financial results were unveiled in the bank’s H1’23 financial report, which was recently disclosed to the Nigerian Exchange Limited (NGX).
Among the noteworthy highlights of the report, it was revealed that the UBA Group achieved remarkable growth across its major income streams, registering double and triple-digit increases. This growth is attributed to the continued expansion of the Group’s contributions and market share through its subsidiaries in Africa and around the world.
Profit after tax (PAT) saw an astonishing surge of 437.8%, reaching N378.24 billion in H1’23, compared to the figures reported in H1’22.
Operating income demonstrated robust growth, ascending by 206.6% to reach N783.96 billion in June 2023, surpassing the N255.67 billion reported in the previous year.
The UBA Group’s Gross Earnings witnessed a remarkable increase, surging by 164% to reach N981.78 billion in June 2023, up from N372.36 billion recorded in June 2022.
Total Assets exhibited substantial growth, rising by 41.7% to N15.38 trillion from the N10.86 trillion reported in H1’22.
Customer Deposits soared by an impressive 42.4% during the same period, reaching N11.14 trillion, compared to the N7.8 trillion recorded at the end of 2022. The Shareholders’ Funds also experienced growth, reaching N1.712 trillion, reflecting the Group’s robust capacity for internal capital generation.
In recognition of this exceptional performance and in adherence to the Group’s tradition of rewarding shareholders, the Board of the Bank has approved an interim dividend of 50 kobo per share, marking an increase of over 150% from the previous year.
UBA’s Group Managing Director/Chief Executive Officer, Mr. Oliver Alawuba, shared his insights on these impressive results. He attributed the outstanding performance to the Group’s unwavering commitment to delivering value to its shareholders. He also highlighted the Group’s advancements in digital payments, retail penetration, and the benefits derived from revaluation gains, contributing significantly to this success.
Mr. Alawuba underscored the advantages of the Group’s diversification strategy across Africa and globally. He particularly emphasized the growth in the Group’s international business, including its presence in the UAE. He expressed unwavering confidence in the bank’s steady growth trajectory, underpinned by robust risk management practices and strategic technological investments aimed at enhancing customer service.
Furthermore, he shed light on the Group’s pivotal role in financing critical projects across Africa, facilitating intra-Africa trade, and serving as a versatile last-mile distribution network for funds from donor and multilateral agencies destined for Africa.
UBA’s Executive Director Finance & Risk, Ugo Nwaghodoh, echoed Mr. Alawuba’s sentiments, emphasizing that the H1 2023 financial numbers reflect excellent performance across key metrics. He highlighted the bank’s commitment to its strategic priorities and affirmed the Group’s maintenance of robust capital buffers to support business growth and absorb potential losses. As of now, the Group’s shareholders’ funds stand at N1.7 trillion, accompanied by a capital adequacy ratio of 36.4%.
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