October 06, (THEWILL) – Africa’s Global Bank, United Bank for Africa Plc, recorded N106.1 billion in e-banking revenue on a strong financial inclusion drive. This constitutes a 107.8 percent growth compared to the N51 billion posted in HY 2023, according to its audited financial statement for the period ended June 30, 2024.
The e-banking income includes revenue from electronic platforms, such as mobile applications, USSD channels, Internet banking, ATM, PoS as well as other debit and credit card transactions.
The revenue haul in technology-related operations of the bank reflected in the Fees & Commission Income which showed an exponential growth of 92.4 percent during the review period from N124.9 billion in HY 2023 to N250.6 in HY 2024. The e-banking revenue was the largest component accounting for 42.3 percent of the total Fees & Commission Income segment during the period.
A further look into the financial statements of the group showed that e-banking expense also recorded a growth trajectory to N83.1 billion from N41.4 billion in the corresponding period, reflecting an increase of 100.5 percent. It also constituted 78.8 percent of the total N105.5 billion Fees & Commission Expense posted in the review period against N47.6 billion in HY 2023.
THEWILL records that the Tier-1 financial institution group has maintained the lead in e-banking revenue in the industry following outstanding commitment towards bringing banking to digital age. The recent performance points to over 100 percent growth likely to occur in the current year-end compared to the N125.57 billion achieved in FY 2023.
UBA is not left out among the Nigerian banks that have increased the tempo of their digital operations towards superior service delivery as competition among them intensifies. The move is aimed at deepening financial inclusion and also reducing emphasis on cash transactions. It also marks a significant step toward enhancing the self-sufficiency of Nigeria’s payment infrastructure promoted by the Nigeria Inter-Bank Settlement System (NIBSS).
The Group Managing Director of UBA, Dr Oliver Alawuba, attributes the bank’s impressive HY 2024 performance to the adoption of technology and data analytics among other factors.
Alawuba, who made this disclosure during the bank’s recent Investors’ Conference, stated that despite global economic challenges, including high inflation and political instability across some regions in Sub-Saharan Africa, UBA achieved double-digit growth, strengthening its position in the banking industry.
He stressed that as UBA enters the second half of the year, it does so from a position of strength, noting that the bank is well-positioned to continue its growth trajectory, with an emphasis on market leadership and customer satisfaction anchored to cutting-edge technology.
UBA recorded strong growth across all key metrics in HY 2024.
Profit Before Tax surged to N401.6 billion which Alawuba said reflected an impressive reflection of the bank’s effective risk management despite macroeconomic pressures.
Customer deposits grew by 34 per cent, increasing from N17.4 trillion at the end of 2023 to N23.2 trillion in H1 2024, a sign of strong customer trust and loyalty.
Total assets rose by 37 per cent, reaching N28.3 trillion, up from N20.7 trillion at the end of 2023. Net Interest Income experienced significant growth, expanding by 143 per cent year-on-year to N675 billion, further demonstrating the bank’s strength in its core banking operations.
Further breakdowns showed that in digital banking, UBA reported a 107.8 per cent year-on-year growth in income, highlighting the bank’s leadership in digital transformation and financial inclusion.
On digital banking and innovation, UBA’s investment in technology and innovation has paid off significantly, as income from digital banking and payments saw a dramatic increase, with fund transfer fees rising by 188.7 per cent and remittance fees jumping by 228 per cent.
Alawuba emphasised that UBA’s strategy of leveraging technology and data analytics is a key driver of this growth, helping to boost financial inclusion across Africa.
United Bank for Africa (UBA) Plc is the second largest Nigerian bank in terms of asset size, with a total asset size of N28.3 trillion. The bank has over 1000 touchpoints across the 24 countries where it is domiciled, however, the bank has 451 branches across Nigeria’s 36 states and the FCT.
UBA has a staff strength of over 10,000, with over 5,900 in UBA Nigeria.
Data by the Nigerian Exchange Ltd (NGX) showed that UBA closed its last trading day (Friday, October 4, 2024) at N27.35 per share on the NGX, recording a 1.3 percent gain over its previous closing price of N27.00
UBA began the year with a share price of N25.65 and has since gained 6.63 percent on that price valuation, ranking it 79th on the NGX in terms of year-to-date performance. Shareholders can be optimistic about UBA knowing the stock has accrued 15 percent over the past four-week period—29th best on NGX.
UBA stunned the stock market on Monday, September 30, with the announcement of a record-breaking N2 per share interim dividend for its shareholders.
This development, which marks the highest interim dividend payout among Nigerian banks in the first half of 2024, has been applauded by stakeholders and industry experts.
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
