October 03, (THEWILL) – The Group Managing Director of the United Bank for Africa Plc (UBA), Mr Oliver Alawuba, has said despite economic challenges of high inflation, rising debt levels, increasing interest rates, and tighter monetary policies that dominated the regions where the bank operates, the bank demonstrated resilience in the first half of 2024.
Speaking at a H1 2024 Financial Year Investors’ Conference on Thursday, Alawuba said UBA’s strong leadership, dedicated team, supportive customers and a clear strategic direction, enabled it to navigate the challenges and achieve sustained and profitable growth in the half year.
“We have remained focused on navigating these challenges while upholding the ideals of Enterprise, Excellence, and Execution (3 Es). Our commitment to these principles, encapsulated in our “EXECUTION” mantra, has brought us closer to industry leadership in several markets. Our financial performance reflects our unwavering focus on delivering value to our customers through our Customer-First (C1st) philosophy
“Our successes in H1 2024 were made possible by the dedication of our colleagues, the trust of our customers, the support of our regulators, and the confidence of our shareholders. We remain committed to achieving even greater milestones with your continued support”, he said.
Presenting a highlight of the Bank’s H1 2024 audited financials released to the Nigerian Exchange Group, Alawuba said UBA Group delivered strong double-digit growth across high-quality and sustainable revenue streams.
The bank achieved a robust Profit Before Tax of N401.6 billion, reflecting its ability to manage risks effectively amidst macroeconomic volatility. Customer deposits grew by 34%, from N17.4 trillion at year-end 2023 to N23.2 trillion in H1 2024, demonstrating the trust and loyalty of our customers.
Also, the bank recorded 37% growth in total assets, reaching N28.3 trillion, up from N20.7 trillion at FYE 2023. This growth was driven by strong customer relationships and its ability to capitalise on opportunities across geographies.
While net interest income expanded by 143% year-on-year to N675 billion, Digital Banking income surged by 107.8% YoY to N106 billion. Also, funds transfer and remittance fees rose 188.7% and 228% respectively.
In addition, Income from trade transactions grew 83% to N18 billion as we strengthened our role in facilitating intra-regional and international trade.
In 2024, UBA promoted over 2,000 employees and paid the 2023 bonus to eligible staff across Nigeria and UBA Africa (exNigeria).
“Strategic partnerships remain central to our growth strategy. In 2024, UBA was one of six banks to sign a Memorandum of Understanding with the Pan-African Payment Settlement System (PAPSS), enhancing cross-border trade and financial integration across Africa. We successfully deployed instant payment systems in five African countries, with more to follow. Our collaborations with Telco partners have also expanded, with funds under management now exceeding $1 billion. These partnerships enable us to deliver impactful solutions such as microlending and savings products, enhancing financial inclusion.
“We are at an advanced stage with our recapitalisation process. Our application has been submitted to the SEC and we expect their approval in the next couple of weeks following which the market will be advised.
“We enter the second half of 2024 from a position of strength. Our proven resilience, strong capital position, and market-leading capabilities position us to continue our growth trajectory. “EXECUTION” will remain our driving force as we focus on market leadership and delivering excellent customers”, said Alawuba.
The Challenges As Highlighted
In July 2024, the International Monetary Fund (IMF) projected global economic growth at 3.2% for 2024 and 3.3% for 2025. The global economy continues to grapple with interconnected challenges, including geopolitical tensions, high inflation, and the accelerated adoption of transformative technologies like Artificial Intelligence (AI).
Compounding these are the escalating effects of climate change, all of which complicate the efforts to normalise monetary policies. Persistent inflationary pressures have raised the prospect of prolonged higher interest rates, amidst growing trade tensions and policy uncertainties. These global risks significantly influence market volatility, shaping investor sentiment and operational realities.
Sub-Saharan Africa: In Sub-Saharan Africa, growth projections for 2024 have been revised downward to 3.7% from the earlier forecast of 3.8%. Inflation is expected to ease, allowing private consumption and investment to gradually recover.
Political and Social Dynamics: Youth-led protests in Nairobi, Kenya, opposing the now-withdrawn 2024 Finance Bill, and the quelled #Endbadgovernance protests in Nigeria, which were spurred by economic hardship and insecurity. These events reflect growing public pressure for better governance across the region.
West African Geopolitical Shifts: The formation of the Alliance of Sahelian States (AES) by Burkina Faso, Mali, and Niger in 2023, signalled regional re-alignments, with potential economic and political implications. Their exit from ECOWAS and possible withdrawal from the West African Economic and Monetary Union (WAEMU) could impact the stability of the regional economy. However, the February 2024 lifting of sanctions against Niger by ECOWAS is a positive step towards reducing geopolitical tensions.
Growth in East Africa: East Africa remains Africa’s fastest-growing region, with a projected growth of 4.9% in 2024. Seven economies (Rwanda, Ethiopia, Djibouti, Tanzania, Uganda, Burundi, and Kenya) are expected to grow by 5% or more. Key drivers include government investments in infrastructure, connectivity, and trade facilitation, alongside efforts to modernise agriculture and boost productivity in services.
Southern Africa: After a slowdown in 2023, growth in Southern Africa is expected to pick up, reaching 2.2% in 2024. For Zambia, real GDP is projected to grow by 4.5%, driven by recoveries in mining, services, and manufacturing, supported by a rebound in copper prices and progress in debt restructuring under the G20 Common Framework.
Overall, Sub-Saharan Africa’s outlook remains cautiously optimistic, though risks from debt, inflation, and political instability persist.
