‘We’ll continue to expand our market share,’ UBA GMD says as bank declares 143% gross earnings, N757.7bn profit

Group Managing Director/Chief Executive Officer of United Bank for Africa (UBA), Oliver Alawuba has expressed delight at the Bank’s proposition of a final total dividend of N78.658 billion, representing N2.30 per share even as it recorded gross earnings growth of 143 per cent and profit before tax rose to N757.680 billion in its audited financial results for the full year ended December 31, 2023.

Alawuba said despite the impressive outing, the bank will not rest on its oars to continue to expand its market share.

The dividend proposed represents N2.30 per share. This, along with a 50 kobo per share interim dividend paid in September 2023, brings the total dividend for the year to N2.80.

The 2023 financials, filed by the bank at Nigerian Exchange Limited, showed an impressive leap in gross earnings, as it grew from N853.2 billion recorded at the end of 2022 to close at N2.08 trillion, representing a strong 143 per cent growth.

The banks’ total assets also rose by 90.22 per cent, to close at N20.65 trillion in December 2023, up from N10.86 trillion in 2022. This leap remains a very significant achievement and milestone in the history of the financial powerhouse.

Despite the highly challenging global economic and business environment, UBA recorded a profit before tax, with an exponential growth of 277 per cent, to close the year under review at N758 billion, rising from N201 billion recorded at the end of the 2022 financial year, while profit after tax (PAT) grew by 257 percent from N170 billion in 2022, to N608 billion in the year under consideration.

Consequently, UBA Group shareholders’ funds rose from N922 billion as of December 2022 to close the 2023 financial year at N2.0 trillion, achieving a growth of 120.2 per cent, compared to prior year.

In the year under consideration, UBA Group cost-to-income ratio dropped from 59.2 per cent in 2022 to 37.2 per cent, pointing at the group’s improving efficiency.

UBA recorded a 61.3 percent growth in loans to customers, moving up to N5.5 trillion in 2023, whilst customer deposits improved by 90.31 per cent to N14.9 trillion, compared to N7.8 trillion recorded in the corresponding period of 2022.

Speaking on the results, Alawuba said: “I am very pleased with the unprecedented results achieved by our Group in the full year, 2023. The bank’s diversified business model (Pan-African and International strategy) is justified by the contribution of its Ex-Nigeria business to the Group’s results and reinforces its resolve to expand its 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 stated.

The executive director, finance and risk management, UBA, Ugo Nwaghodoh, said the 2023 full year was a particularly eventful year, with galloping inflation and currency depreciation ravaging key markets, amidst pockets of regional conflicts and security challenges.

“We are delighted however at the strong growth in earnings and profitability recorded 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,” he said.

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.”