United Bank for Africa (UBA) Plc recorded a N608 billion, or 257 percent growth in its profit after tax (PAT) in 2023, from N170 billion in 2022, the bank’s audited financial results for the full year ended December 31, 2023 has shown.
The 2023 audited financials filed by the Bank at the Nigerian Exchange Limited (NGx) on Monday showed exceptional and impressive performance across all its major indicators, the Bank said in a statement.
The Bank’s gross earnings grew from N853.2 billion recorded at the end of 2022 to close at N2.08 trillion, representing a strong 143 percent growth.
Also, the Bank’s total assets rose significantly by 90.22 percent, doubling the N10 trillion mark, to close at N20.65 trillion in December 2023, from N10.86 trillion in 2022.
“This leap remains a very significant achievement and milestone in the history of the financial Powerhouse,” the Bank said.
The Bank said that despite the highly challenging global economic and business environment, it realised an exponential growth in its profit before tax of 277 percent, to close at N758 billion, from N201 billion recorded at the end of the 2022 financial year.
Consequently, it’s said the UBA Group Shareholders’ Funds rose from N922 billion as at December 2022 to close the 2023 financial year at N2.0tn, an impressive growth of 120.2 percent, compared to prior year.
Similarly, UBA Group cost-to-income ratio dropped from 59.2 percent in 2022, to 37.2 percent, indicating the Group’s improving efficiency management capacity.
In fulfilment of the promise made by the UBA Group Chairman, Tony Elumelu, to shareholders at the last Annual General Meeting, the Bank proposed a final dividend of N2.30 kobo for every ordinary share of 50 kobo, for the financial year ended December 31, 2023.
The final dividend is however subject to the ratification of the shareholders during its upcoming annual general meeting (AGM).
In terms of loans to customers, the Bank said it recorded a 61.3 percent growth in that portfolio, moving up to N5.5 trillion in 2023, whilst customer deposits improved by 90.31 percent to N14.9 trillion, compared to N7.8 trillion recorded in the corresponding period of 2022, reflecting increased customer confidence, enhanced customer experience, successes from the ongoing business transformation programme and the deepening of its retail banking franchise.
UBA’s Group Managing Director/Chief Executive Officer, Oliver Alawuba, described the results by the Group in FY2023 as unprecedented achievement
Apart from the Group’s profit before tax of N758 billion, from N201 billion in the prior year, he said the balance sheet also grew to N20.7 trillion from N10.8 trillion in the previous year.
“The Group’s shareholder’s funds crossed the N2 trillion mark, from N922 billion in 2022, whilst total assets crossed the N20 trillion mark (90.2% YoY growth). The Group is well positioned for further business expansion in FY2024 having closed FY2023 with Capital Adequacy Ratio of 32.6%,” he said.
He added that the Bank’s diversified business model (Pan-African and International strategy) was justified by the contribution of its Ex-Nigeria business to the Group’s results and reinforces its resolve to expand our market share of customers, funding, digital and transaction banking businesses across Africa.
“Driven by our customer service and execution-led delivery model, we will continue to expand our market share and create value for our shareholders and meet the expectations of our various stakeholders,” the GMD said.
UBA’s Executive Director, Finance & Risk Management, Ugo Nwaghodoh, said the 2023 full year was a particularly eventful, amid galloping inflation and currency depreciation ravaging key markets, and pockets of regional conflicts and security challenges.
“I am delighted, however, at the strong growth in earnings and profitability recoded in the year. The Group conservatively set up significant impairment reserves against its overall risk assets portfolio considering the latent impact of the macroeconomic headwinds on our credit portfolio. Consequently, Cost of Risk grew to 3.09% from 0.63% in the prior year,” Nwaghodoh noted.
On the expectation for the 2024 financial year, he said, “The Group remains fervently committed to sustainable growth and maintaining its strong compliance and risk management practices culture even as we drive our business through the next phase of growth.”
