United Bank for Africa (UBA) has reported a 40% increase in gross earnings, reaching N1.37 trillion in the first half of 2024, compared to N981.77 billion during the same period in 2023. This robust growth highlights the bank’s resilience and strategic expansion in a challenging economic landscape.
In addition to the impressive earnings, UBA declared an interim dividend of N2 per share, marking a remarkable 300% increase from the N0.50 declared in the first half of 2023.
The bank’s interest income surged by 134.3%, hitting N1.003 trillion, up from N428.2 billion in June 2023. Total assets also saw a notable rise of 37.2%, climbing from N20.6 trillion in December 2023 to N28.3 trillion. Customer deposits grew by 33.7% to N23.2 trillion, reflecting strong trust and confidence from its clientele.
Despite the overall growth, UBA’s profit before tax slightly decreased to N402 billion from N403 billion in the same period last year. Pre-tax profit also dipped to N316 billion, down from N378 billion in 2023. However, shareholders’ funds increased by 47%, rising from N2.03 trillion in December 2023 to N2.99 trillion, signaling solid financial health.
UBA’s Group Managing Director/CEO, Oliver Alawuba, attributed the strong performance to the bank’s focus on sustainable banking revenues, particularly through digital banking, transaction growth, and geographic expansion. He emphasized that UBA is continuing to invest in technology, data analytics, and product innovation to enhance customer experience.
The bank’s Executive Director of Finance & Risk, Ugo Nwaghodoh, highlighted operational efficiency, with the cost-to-income ratio stabilizing around 50%. He noted that the bank is actively exploring ways to reduce costs, including robotizing processes and applying artificial intelligence. Nwaghodoh also pointed to the bank’s efforts in managing risk, ensuring that UBA stays aligned with regulatory and sustainability goals.
With 35 million customers across 1,000 business offices in 20 African countries and a presence in global cities like New York, London, Paris, and Dubai, UBA continues to expand its reach. As part of its 75th anniversary celebration, the bank rewarded 30 customers with over N17 million in its August draw, further enhancing its reputation for rewarding customer loyalty.
The bank’s performance underlines its position as a leader in the African banking sector, driven by a strong focus on innovation and sustainable growth.