United Bank for Africa Plc grew profit after tax by 256.89 per cent to N607.69bn in 2023 from N170.27bn in the previous year.
This was revealed in the audited financial results for the full year ended December 31, 2023, filed with the Nigerian Exchange Limited.
In the year under review, UBA’s gross earnings improved by 143 per cent to N2.08tn from N853.2bn at the end of 2022.
Similarly, its profit before tax ballooned by 277 per cent, to close the year under review at N758bn, compared to 201bn in the prior year.
It grew total assets by 90.22 per cent, doubling the N10tn mark, to close at N20.65tn in December 2023; up from N10.86tn in 2022.
In a statement accompanying the result, UBA said that the leap in its total assets remained a very significant achievement and milestone in its history.
UBA Group shareholders’ funds also went up by 120.2 per cent year-on-year to N2.0tn.
However, the group’s cost-to-income ratio dropped from 59.2 per cent in 2022 to 37.2 per cent.
It grew loan portfolios by 61.3 per cent to N5.5tn, while deposits improved by 90.31 per cent to N14.9tn, compared to N7.8tn recorded in 2022.
In fulfilment of the promise made by the UBA Group Chairman, Tony Elumelu, to shareholders at the last annual general meeting, the bank proposed a final dividend of N2.30 kobo for every ordinary share of 50 kobo for 2023.
According to the results of the banking group, the dividend would be paid from its retained earnings as of December 2023, which were N919.872bn.
In 2023, UBA saw 9.63 billion units of its shares exchanged hands, which represented 28.2 per cent of the shares outstanding, concluding the year at N25.65 per share, translating to a 237.5 per cent year-to-date increase.
Commenting on the results, UBA’s Group Managing Director/Chief Executive Officer, Oliver Alawuba, said, “I am very pleased with the unprecedented results achieved by our group in 2023. The group made a profit before tax of N758bn from N201bn in the prior year. The balance sheet also grew to N20.7tn from N10.8tn in the previous year.
“The group’s shareholder’s funds crossed N2tn from N922bn in 2022. The group is well positioned for further business expansion in FY2024 having closed FY2023 with a capital adequacy ratio of 32.6 per cent.”
He added that the bank’s diversified business model (Pan-African and international strategy) was justified by the contribution of its international business to the group’s results and reinforced its resolve to expand its market share of customers by funding, digital and transaction banking businesses across Africa.
“Driven by our customer service and execution-led delivery model, we will continue to expand our market share, create value for our shareholders and meet the expectations of our various stakeholders,” the GMD stated.
Meanwhile, UBA’s Executive Director of Finance & Risk Management, Ugo Nwaghodoh, noted the 2023 full year was a particularly eventful year, with galloping inflation and currency depreciation ravaging key markets, amid pockets of regional conflicts and security challenges.
“I’m delighted, however, at the strong growth in earnings and profitability recorded in the year. The group conservatively set up significant impairment reserves against its overall risk asset portfolio, considering the latent impact of the macroeconomic headwinds on our credit portfolio. Consequently, the cost of risk grew to 3.09 per cent from 0.63 per cent in the prior year,” he maintained.
On the outlook for 2024, the ED said, “The Group remains fervently committed to sustainable growth and maintaining its strong compliance and risk management practices culture even as we drive our business through the next phase of growth.”