United Bank for Africa reported a 40% increase in gross earnings to N1.37 trillion in the first half of 2024, up from N981.77 billion in the previous year.
The pan-African banking firm issued an interim dividend of N2 per share, a 300 percent increase over the N0.50 declared during the same period in 2023.
This was announced in the company’s audited financial reports for the first half of fiscal year 2024, which were filed with the Nigerian Exchange on Monday. In the period under examination, the bank’s interest income increased by 134.3 percent to N1.003 trillion, up from N428.2 billion in June of previous year.
Total assets surged by 37.2 percent, rising from N20.6 trillion in December 2023 to N28.3 trillion, while customer deposits increased by 33.7% per cent to N23.2tn.
The profit before tax stood at N402bn, lower than the N403bn reported in June 2023, while pre-tax profit dipped to N316bn from N378bn in H1 2023. Shareholders’ funds, however, rose by 47 per cent, increasing from N2.03tn in December 2023 to N2.99tn.
Commenting on the results, UBA’s Group Managing Director/Chief Executive Officer, Oliver Alawuba, emphasised the bank’s commitment to delivering value to its shareholders.
He stated, “UBA Group has continued to deliver strong double-digit growth in high-quality and sustainable banking revenue streams, driven by a focused growth in balance sheet, transaction, and digital banking businesses across geographies.”
He also noted that the bank was making significant investments in technology, data analytics, product research, and innovation to enhance customer experience as it intensifies its customer acquisition drive.
The Executive Director of Finance & Risk, Ugo Nwaghodoh, expressed satisfaction with the bank’s operational efficiency, with a cost-to-income ratio stabilising around the 50 per cent range.
He stated, “Our cost optimisation provides scope for further moderation, as we explore options towards a drastic reduction of our foreign currency-denominated cost components, robotising processes, and applying artificial intelligence.”
Nwaghodoh explained that the group was focused on effectively managing heightened credit, operational, cyber, and information security risks while aligning with sustainability goals.
He added, “The group has made significant progress and is on course to shore up its share capital to support its medium to long-term aspirations, aligning with regulatory requirements in Nigeria and other jurisdictions.”
The UBA Group has 35 million customers across 1,000 business offices and customer touchpoints in 20 African countries, with a presence in major cities like New York, London, Paris, and Dubai.
