The total assets of United Bank for Africa (UBA) Plc peaked at N20.65 trillion in 2023, doubling the N10 trillion mark of 2022 and representing 90.22 per cent growth and up by N10.86 trillion.
Equally, the shareholders’ fund of the Pan African bank swelled to N2 trillion in Y2023 from N922 billion in 2022, an impressive growth of 120.2 per cent.
These are contained in the bank’s audited financial results for the full year ended December 31, 2023, with exceptional and impressive performance across all its major indicators.
This leap, which remains a very significant achievement and milestone in the history of the financial powerhouse, is buoyed by the impressive leap in gross earnings which grew from N853.2 billion in 2022 to N2.08tn in Y2023, a strong 143 per cent growth.
Despite the highly challenging global economic and business environment, UBA recorded a laudable 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 per cent from N170 billion in 2022, to N608 billion in the year under consideration.
In the year under consideration, UBA Group’s cost-to-income ratio dropped from 59.2 per cent, in 2022, to 37.2 per cent pointing to the Group’s improving efficiency.
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 subject to the ratification of the shareholders during its upcoming annual general meeting (AGM).
Also worthy of note, UBA recorded a 61.3 per cent 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, reflecting increased customer confidence, enhanced customer experience, successes from the ongoing business transformation programme and the deepening of its retail banking franchise.
Commenting on the results, UBA’s Group Managing Director/Chief Executive Officer, Oliver Alawuba, said: “I am very pleased with the unprecedented results achieved by our Group in FY2023. The Group made a profit before tax of N758 billion, from N201 billion in the prior year. The balance sheet also grew to N20.7 trillion from N10.8 trillion in the previous year.
He said, “The Group’s shareholder’s funds crossed N2 trillion from N922bn in 2022, whilst total assets crossed the N20 trillion mark (90.2 per cent YoY growth). The Group is well positioned for further business expansion in FY2024 having closed FY2023 with a Capital Adequacy Ratio of 32.6 per cent.”
He added that 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, create value for our shareholders and meet the expectations of our various stakeholders,” the GMD stated.
UBA’s Executive Director of Finance & Risk Management, 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.
“I am 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. Consequently, the Cost of Risk grew to 3.09 per cent from 0.63 per cent 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.”
