By allcitynews.ng
United Bank for Africa (UBA) Plc, has not only spreads its net into global markets, captured 45 million customers, but has also reported a robust financial performance for the full year ended December 31, 2024, achieving significant growth across all key indicators despite a challenging global economic environment.
The audited financial results filed with the Nigerian Exchange Limited (NGX) on Monday revealed that the bank’s profit after tax surged by 26.14 percent to ₦766.6 billion, compared to ₦607.7 billion recorded in the previous fiscal year. Gross earnings also grew remarkably by 53.6 percent, reaching ₦3.19 trillion from ₦2.08 trillion in 2023.
UBA’s total assets rose by 46.8 percent to ₦30.4 trillion, up from ₦20.65 trillion recorded the previous year, marking a milestone achievement for the bank with the most extensive footprint across the African continent. The bank’s profit before tax also increased by 6.1 percent, closing the year at ₦803.72 billion, compared to ₦757.68 billion in 2023.
Following this impressive performance, UBA’s shareholders’ funds grew by 68.39 percent to ₦3.419 trillion, from ₦2.030 trillion recorded at the end of 2023. The bank has proposed a final dividend of ₦3.00 per ordinary share of 50 kobo, bringing the total dividend for the year to ₦5.00. This proposal is subject to shareholder approval at the upcoming Annual General Meeting (AGM).
Commenting on the performance, UBA Group Managing Director/Chief Executive Officer, Oliver Alawuba, attributed the growth to the bank’s focus on earnings growth, asset quality preservation, business expansion, and deepening market share. He noted that the results demonstrate the bank’s capacity to maintain strong spreads and margins while growing its deposit base.
“Our continued investment in our highly diversified global network allows UBA to deliver high-quality, consistent earnings. Our businesses have been able to grow product and service income and expand our deposit base, allowing the Group to increase earnings, while maintaining strong spreads and margins,” Alawuba stated.
He further highlighted the bank’s impressive growth in total deposits, which rose by 42.03 percent from ₦17.4 trillion in 2023 to ₦24.7 trillion in 2024. UBA’s operations outside Nigeria, which include the Rest of Africa and international markets, now contribute 51.7 percent of the Group’s revenue, up from 31 percent in 2019.
“Our ex-Nigeria operations have expanded significantly over the past five years, delivering diversification benefits and further boosting long-term shareholder value. We are currently upgrading our business scope and authorization in France, and considering other viable markets in the short to medium term,” Alawuba added.
The bank’s Executive Director, Finance & Risk Management, Ugo Nwaghodoh, noted that UBA recorded triple-digit growth in net interest income, resulting in an improvement in net interest margin from 6.83 percent in 2023 to 9.02 percent. Additionally, the bank’s fee and commission income lines grew by 91.66 percent, contributing to the overall profitability.
He also emphasized UBA’s solid capital adequacy ratio of 31.0 percent, supported by a 68.4 percent growth in shareholders’ funds to ₦3.42 trillion. Non-performing loans (NPL) ratio improved to 5.58 percent with strong provision coverage of 81 percent, reflecting the bank’s commitment to maintaining asset quality.
United Bank for Africa, one of the largest employers in the African financial sector, operates in twenty African countries as well as the United Kingdom, the United States, France, and the United Arab Emirates. Serving over 45 million customers globally, the bank continues to strengthen its position as a leader in financial inclusion and technological innovation.
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