United Bank for Africa (UBA) Plc on Tuesday filed with the Nigerian Exchange Limited (NGX) a half year audited financial report of outstanding performance for the half year ended June 30, 2023.
The report showed that the Group recorded double and triple-digits growth across its major income lines, as it continued to show substantial progress in increasing the contribution and market share from its subsidiaries in Africa and globally.
At the end of the first two quarters of the year, the bank said despite the tough global macroeconomic and geo-political challenges in
Africa, the Group reported a profit before tax of N404 billion, or a 371 percent growth, compared to about N85.75 billion realised in the corresponding period in 2022.
The performance, the bank said, translated to an annualised Return on Average Equity of 57.7 percent as against 17.1 percent last year.
Also, the results showed that as of June 30, 2023, a profit after tax (PAT) of N378.24 billion, an increase of 437.8 percent over the same period last year.
The report showed the bank’s operating income grew by 206.6 percent to N783.96 billion in June 2023 above N255.67 billion reported in 2022.
Similarly, the Group delivered a 164 percent growth in its Gross earnings which rose to N981.78 billion as at June 2023, from N372.36 billion recorded last year.
The report showed the bank’s total assets continued a strong upward trajectory, a 41.7 percent climb above the N15 trillion mark, to about N15.38 trillion, from N10.86 trillion recorded at the end of last year.
Other details showed that customer deposits also rose by about 42.4 percent to N11.14 trillion in the period, from N7.8 trillion recorded at the end of 2022, while Shareholders’ Funds increased to N1.712 trillion reflecting the Group’s strong capacity for internal capital generation.
In the report, the Board announced approval for the payment of an interim dividend of 50k per share, representing over 150 percent increase over the previous year.
UBA’s Group Managing Director/Chief Executive Officer, Oliver Alawuba, described the performance as exceptional, saying it underscored the Group’s commitment to consistently deliver value to its shareholders.
Alawuba said the Group which made progress in digital payments and retail penetration, also benefited from the effect of Naira revaluation gains, arising from the harmonisation of foreign exchange rates at the different access windows in Nigeria.
“The Group recorded strong double-digit growth in revenues and profits from its operations, the result also reflects the effect of sizeable revaluation gains, arising from the harmonisation of currency exchange rates in Nigeria. Our reporting currency found a new exchange level at about N756 to the dollar as of 30 June 2023, compared to N465 at the beginning of the year. The results again demonstrate the benefits of our long-held diversification strategy across Africa and globally. The growth of our international business, most recently in the UAE, only reinforces this earnings quality.
“Our business is on a steady growth trajectory, as we further strengthen our risk management traditions and practices necessary technology investments to deliver premium service to our customers. We have also continued to finance landmark projects in critical sectors of the economies across Africa, facilitating intra-Africa trade with our valuable offerings and provide a versatile last-mile distribution network for Africa-bound donor and multilateral agency funds.”
He said the three core geographical pillars of bank business (Nigeria, Rest of Africa and Rest of the World) were making strong contributions to the Group profit, adding that these further justified the bank’s global strategy and business positioning across Africa, UAE, France, UK and USA.
Besides, he said the performance also demonstrated the benefits of positioning the bank as the financial intermediary for Africa and the rest of the world.
On the plans for the rest of the year, Alawuba said in the last quarter of the year, the Group would remain strategically positioned to sustain the strong performance, consolidating on its half year results, to deliver superior returns to its shareholders.
UBA’s Executive Director Finance & Risk, Ugo Nwaghodoh, said the half year 2023 financial numbers reflected an excellent performance across key metrics, as the bank diligently executes its strategic priorities.
Nwaghodoh said the Group maintains robust capital buffers to support business growth and loss absorbency, adding rhe Group’s shareholders’ funds stood at N1.7 trillion, with a capital adequacy ratio of 36.4%.
UBA is reputed to be a pan-African financial institution, offering banking services to more than 37 million customers across 1,000 business offices and customer touch points in 20 African countries. With presence in New York, London, and Paris and now the UAE, UBA has connected people and businesses across Africa through retail, commercial and corporate banking, innovative cross-border payments and remittances, trade finance and ancillary banking services.
