May 26, (THEWILL)- The Chairman, Board of Directors, United Bank for Africa (UBA) Plc, Mr Tony Elumelu has said that the over N2.08 trillion revenue and N607.69 billion profit after tax reported by the group in the 2023 financial year, was the highest in the banking industry.
The N2.08 trillion gross earnings represented a 413 percent jump.
Elumelu stated this while presenting the financial highlights during the 62nd Annual General Meeting (AGM) of the group in Abuja on Friday, May 24. .
Profit Before Tax surged 277.2 percent to N757.68 billion, asserting its leading position within the financial sector. .
Elumelu noted that the bank sustained deposit mobilization efforts, growing total deposits by 93 percent to N17.36 trillion from N8.99 trillion which was reported in 2022.
The bank also maintained a well-structured and diversified balance sheet, with total assets and shareholders’ funds reaching N20.65 trillion and N2.03trillion respectively.
The impressive financial outcomes were propelled by a significant increase in net interest income, due to a combination of a strong expansion in the loan portfolio, higher net interest margins and a substantial contribution from foreign exchange operations.
Also, FX operations benefited from increased business activity and improved profit margins.
Additionally, the bank’s loan book expanded by 61 percent to N5.55trillion, from N3.44trillion, consequently, Non-performing Loan (NPL) ratio ratio reached 5.85 percent.
“Behind each of these figures, is the everyday work of our dedicated staff, providing tangible solutions to real-world needs, delivering value to consumers, businesses and governments,” Elumelu stated.
UBA supports consumers across Africa and globally, seeking secure and convenient payment methods, businesses requiring modern payment acceptance solutions, and issuers and acquirers in need of innovative offerings for their customers.
The bank equally facilitates governments in promptly distributing payments to individuals during crucial times of need.
Oliver Alawuba, Group Managing Director/CEO of the bank who equally spoke at the meeting, stressed that cost discipline was sustained, however, operating costs up 69 percent and in line with guidance.
“This outcome is indicative of steady business-as-usual expenses, the impact of inflationary trends, and deliberate increments related to planned strategic investments and the establishment of new business ventures.
“Notwithstanding the adverse macroeconomic conditions, the fundamental strength of underlying asset quality persists, as reflected in a Non-performing Loan (NPL) ratio of 5.85 percent,” the CEO added.
The bank proposed a N2.80 kobo per share dividend to shareholders to be ratified shortly at the meeting.
THEWILL had reported that the banking subsidiary, United Bank for Africa, had maintained the lead in electronic banking (e-banking) revenue among theTier-1 banks, according to data from the FY 2023 and Q1 2024 financial statements of the institutions. In the Tier-1 category are Access Bank, FirstBank of Nigeria, Guaranty Trust Bank, United Bank for Africa and Zenith Bank.
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.
Analysis of the FY 2023 financial statements of the Tier-1 group in their Holco structures, revealed that the Big Five generated a total of N385.85 billion in e-banking revenue as against N277.14 billion in 2022, representing a 40 percent increase.
UBA earned the highest e-banking income among the Tier-1 financial services institutions. The bank generated N125.57 billion in 2023 representing 32.5 percent of the Tier-1 group total income for the year.
By this, Africa’s Global Bank grew its e-banking income by 59 percent when compared with N75.94 billion it earned in 2022 to emerge the first in 2023, followed by Access Bank which recorded N101.61 billion against N59.65 billion in the previous year, accounting for a 70.34 percent rise
About the Author
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.
