United Bank for Africa (UBA) has recorded a significant 40% growth in gross earnings, reaching N1.37tn in the first half of 2024, compared to N981.77bn during the same period last year.
The bank also announced an interim dividend of N2 per share, marking a 300% rise from the N0.50 declared in the first half of 2023. This information was revealed in UBA’s audited financial results for the half-year period ending June 30, 2024, submitted to the Nigerian Exchange Limited on Monday.
The bank’s interest income saw a substantial increase, jumping by 134.3% to N1.003tn, up from N428.2bn in June 2023.
Additionally, UBA’s total assets grew by 37.2%, rising from N20.6tn in December 2023 to N28.3tn by June 2024. Customer deposits followed suit, increasing by 33.7% to N23.2tn.
Despite this growth, the bank’s profit before tax was slightly lower, standing at N402bn compared to N403bn in June 2023. Pre-tax profit also saw a decline, reaching N316bn from N378bn in the previous period.
However, shareholders’ funds experienced a 47% increase, rising from N2.03tn in December 2023 to N2.99tn in June 2024.
Commenting on the performance, UBA Group’s Managing Director/CEO, Oliver Alawuba, highlighted the bank’s focus on creating value for shareholders. He emphasized the strong growth in sustainable banking revenue, driven by balance sheet expansion and advancements in transaction and digital banking across different regions.
Alawuba added that UBA is investing heavily in technology, data analytics, and product innovation to enhance customer experience and boost acquisition efforts.
Meanwhile, UBA’s Executive Director of Finance & Risk, Ugo Nwaghodoh, praised the bank’s operational efficiency, noting that the cost-to-income ratio remained steady at around 50%. He further explained that the bank is optimizing costs by reducing foreign currency-related expenses and adopting artificial intelligence to automate processes.
Nwaghodoh stressed that UBA is managing risks such as credit, cyber, and information security, while aligning with sustainability goals. He also mentioned the bank’s plans to increase its share capital to meet medium- and long-term objectives in line with regulatory requirements.
As part of its 75th-anniversary celebrations, UBA rewarded 30 customers with over N17m during its August promotional draw.
