Shareholders of United Bank for Africa (UBA) Plc, Africa’s Global Bank, have lauded the board, management, and staff for the remarkable performance achieved in the past years, particularly in 2023.
This acclaim follows the announcement of a final dividend payout of N78.7 billion for the 2023 financial year.
The commendations were expressed during the bank’s 62nd Annual General Meeting held at the Congress Hall of Transcorp Hotels in Abuja over the weekend.
Shareholders enthusiastically endorsed the Board of Director’s proposal to raise additional capital through the issuance of various securities in both Nigerian and international capital markets.
In his address to the shareholders, the Group Chairman, Mr. Tony Elumelu, urged them to actively participate and reinvest their dividends in the bank’s recapitalization efforts. He emphasized the importance of shareholders reinvesting a significant portion of their dividends to ensure continued high returns on their investments. Elumelu personally pledged to reinvest 100% of his dividends, setting an example for others.
UBA declared an interim dividend of N17.1 billion, equivalent to 50 kobo per share, for the first half of 2023. This, combined with the final dividend, brought the total dividend payout for the year to N95.8 billion, representing N2.80 per share.
In a noteworthy occurrence, shareholders received their dividend payouts while still present at the meeting, generating excitement among them.
They commended the bank’s management for its outstanding performance in 2023, which led to the substantial dividend payout.
They also acknowledged the bank’s thriving business in its African subsidiaries, which significantly contributed to the Group’s total income.
Alhaji Mukhtar Mukhtar, a shareholder who spoke at the meeting, praised the concerted efforts of the Group Chairman, Tony Elumelu, and the Group Managing Director, Oliver Alawuba, in driving the bank’s performance to unprecedented heights during the year.
He said, “I want to specially commend the management and Board of UBA, especially the Chairman, Tony Elumelu and the GMD/CEO, Oliver Alawuba, who have been managing activities of this great institution over the past few years.
“We are impressed at the results that you have recorded so far, how you have managed to maintain a well-structured balance-sheet and diversified balance sheet with total Assets growing to over N20trn. The achievement that the bank has recorded under your leadership, especially the sterling contributions of our subsidiaries in Africa deserves accolades,” Muktar stated.
Another shareholder, Patrick Ajudo, also commended Elumelu for keeping the promise made to shareholders a few years ago to begin to pay increased dividend.
“Our Chairman, Tony Elumelu, promised shareholders a few years ago in this same hall, that he will move from ‘kobo-kobo’ dividends to naira dividends, and he has kept that promise. We are very excited, because, not only have you kept that promise, but you have backed it up by even matching the industry standards. Indeed, we are proud to be associated with such a brand that has integrity, and we highly commend you for this,” he stated.
Barrister (Mrs) Adetutu Siyanbola, another shareholder, took time to commend the bank’s management for its operations over the decades, especially as it celebrates its landmark 75th year anniversary, praising the gender balance and high female representation on the bank’s board, which according to her, is a feat worth emulating by other financial institutions in Africa.
While commending the GMD for wining several awards in the 2023 financial year, she expressed satisfaction that the bank did not incur any penalty in the year under consideration, which meant that UBA had zero infractions and didn’t run foul of any regulations.
At the end of the 2023 financial year, UBA recorded an impressive leap in gross earnings, as it grew from N853.2 billion recorded at the end of 2022 to close at N2.07tn; representing a strong 143 percent growth; total assets also rose remarkably by 90.22 percent, to close at N20.65 trillion up from N10.86 trillion in 2022.
Profit before tax, also grew exponentially by 277 percent, to close at N758billion, up from N200.88 billion recorded in 2022; while profit after tax (PAT) grew by 257 percent from N170.2 billion in 2022, to N607 billion.
The Group Managing Director/CEO, Mr. Oliver Alawuba, explained that despite being a year of significant geopolitical and economic challenges, UBA’s strength, the effort and dedication of the team, and its leadership in strategic areas such as innovation and sustainability, helped the bank to grow in a profitable and sustainable manner,
Looking ahead, he said, “The outlook is great because we are diversified. Our African subsidiaries contributed over 55% to the bank’s profit this year, and we will do more. Already, the Bank entered 2024 from a position of strength, with proven resiliency, a powerful brand and a strong capital position.
“As we begin 2024, “execution” will continue to be on the front burner, with an unrelenting focus on market leadership and excellent customer experience at all touch points,” Alawuba explained.
United Bank for Africa is one of the largest employers in the financial sector on the African continent, with 25,000 employees group wide and serving over 35 million customers globally. Operating in twenty African countries and in the United Kingdom, the United States of America, France and the United Arab Emirates, UBA provides retail, commercial and institutional banking services, leading financial inclusion and implementing cutting edge technology.