For the 2023 financial year, the United Bank for Africa (UBA) has reported a 143% increase in its gross revenue, which will reach N2.08 trillion, the bank’s highest level ever.
The bank also suggested a N2.80 kobo dividend per share to shareholders and reported a profit after tax of N607.69 billion.
Tony Elumelu, Chairman of the Board of Directors at UBA, disclosed these numbers last Friday at the bank’s 62nd Annual General Meeting (AGM).
Elumelu pointed out that the bank continued its deposit mobilization efforts, increasing total deposits from N8.99 trillion in 2022 to N17.36 trillion, a 93% increase.
“The bank also maintained a well-structured and diversified balance sheet, with shareholders’ funds and total assets reaching N2.03trn and N20.65trn, respectively,” the speaker stated.
The remarkable financial results were driven by a notable rise in net interest income, which resulted from a robust expansion of the loan portfolio, elevated net interest margins, and a noteworthy input from foreign exchange operations.
Furthermore, higher revenue and better profit margins helped FX operations.
Furthermore, the bank’s loan book increased from N3.44trn to N5.55trn, a 61% increase. As a result, the ratio of non-performing loans (NPLs) rose to 5.85%.
The bank’s Group Managing Director and CEO, Oliver Alawuba, emphasized that cost control was maintained.
“This result is suggestive of consistent business-as-usual costs, the influence of inflationary patterns, and intentional increases linked to planned strategic investments and the launch of new business endeavors,” the speaker stated.
“The Non-Performing Loans (NPL) ratio of 5.85 percent demonstrates the underlying asset quality’s fundamental strength, despite the unfavorable macroeconomic conditions.”
