UBA reports over N2trn revenue, N607.69bn profit, highest in its banking history

The Untied Bank of Africa (UBA) has announced a 143 percent jump in its Gross revenue to N2.08trillion for the 2023 financial year- its highest ever- as well as a Profit After Tax of N607.69billion.

Profit Before Tax surged 277.2 percent to N757.68 billion, asserting its leading position within the financial sector.

The financial highlights were presented in Abuja on Friday by Tony Elumelu, who is UBA Chairman, Board of Directors during the bank’s 62nd Annual General Meeting (AGM).

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 N20.65trillion 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 acquires 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 N2.80 kobo per share dividend to shareholders to be ratified shortly at the meeting.