The United Bank for Africa Plc (UBA) has reported generating gross revenue year-on-year (y-o-y) by 143.3 per cent to 2.08 trillion, and profit before tax (PBT) increased by 277.2 per cent to N757.68 billion, asserting its position as a leading financial institution.
In 2023, UBA’s gross earnings and profit before tax reached their highest levels in the bank’s history.
The bank announced a profit after tax (PAT) of N607.69 billion in the 2023 financial year.
The bank successfully sustained its deposit mobilisation efforts, growing total deposits by 93 per cent to N17.36 trillion from N8.99 trillion in the corresponding period of 2022.
Also, the loan book expanded by 61 per cent to N5.55 trillion from N3.44 trillion.
The bank maintained a well-structured and diversified balance sheet, with Total Assets and Shareholders’ Funds closing at N20.65 trillion and N2.03 trillion, respectively.
Mr. Tony Elumelu, Chairman of UBA’s Board of Directors, presented the financial highlights over the weekend in Abuja during the bank’s 62nd Annual General Meeting (AGM).
This growth was fuelled 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.
The FX operations benefited from increased business activity and improved profit margins.
Mr. Elumelu, Chairman of the Board of Directors, said, “Our annual report is more than a reflection of the past year’s achievements; it is a celebration of our core qualities that have driven our success: leadership, customer service, trust, innovation, and our shared values of enterprise, excellence, and execution.”.
He noted that “behind each of these figures is the everyday work of our dedicated staff, providing tangible solutions to real-world needs and delivering value to consumers, businesses, and governments.
“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.
“Furthermore, we facilitate governments in promptly distributing payments to individuals during crucial times of need.”
Looking forward, he said UBA stands poised to continue its leadership trajectory, building on a rich 75-year legacy of serving its customers and accelerating Africa’s growth.
This legacy, he noted, is woven from decades of insightful market understanding and a steadfast commitment to the communities it serves, which has equipped the bank with the key human, technological, and operational capabilities that form our firm foundation.
“These capabilities, coupled with our strong brand and meticulously crafted propositions, position us not just to compete but to thrive in the ever-evolving financial landscape.
“As 2024 unfolds, UBA remains resolute in its unwavering commitment to innovation, clarity of purpose, operational rigour, and, most importantly, shared value creation. We are confident that by staying true to these core principles, UBA will continue to deliver exceptional value to our stakeholders and play a pivotal role in shaping a brighter future for Africa,” Mr Elumelu further stated.
Also speaking during the AGM, Mr Oliver Alawuba, Group Managing Director/CEO, said cost discipline was sustained, with operating costs up 69 per cent and in line with guidance.
This outcome, he noted, 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.
He added that 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 per cent.
According to him, the bank entered 2024 from a position of strength, with proven resiliency, a powerful brand, and a strong capital position.
“We embraced and ran with the ideals of “execution,” enabling us to move closer to industry leadership in our various markets, particularly in Nigeria,” Mr Alawuba said.
He reiterated that the bank is well positioned to continue its market-leading position across multiple markets and deliver on the ambition to grow, and added: “We have a strong customer franchise and core capabilities, including credit decisions and market-leading efficiency, which are increasingly important given inflationary pressures. Our financial strength allows us to support our customers with a clear purpose, mission, drive and focus throughout the organisation to achieve our strategic goals.”
The Group Managing Director/CEO of UBA thanked his colleagues around the world for their commitment and dedication, the customers and clients for their trust, the regulators in each of UBA’s markets for their guidance, and the shareholders for their continued support.
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