UBA Rakes In N201bn Profit, As Assets Rise To N10.9trn

 

United Bank for Africa (UBA) Plc. has recorded impressive performance across major indices in its audited financial results for the full year ended December 31, 2022.

The 2022 financials, filed by the bank at Nigerian Exchange Limited (NGx) on Thursday, March 30 showed that gross earnings rose significantly to N853.2billion from N660.2billion recorded at the end of the 2021 financial year, representing a strong 29.2percent growth.

Total assets rose remarkably by 27.2per cent, crossing the N10trillion mark, to close at N10.9trillion in December 2022; up from N8.5trillion in 2021.

This figure represents a very significant achievement and milestone in the history of the powerhouse financial institution.

In spite of the challenging global economic and business environment, UBA recorded a laudable profit before tax, with a 31.2per cent growth, to clos e the year under review at N200.8billion, rising from N153.01billion recorded at the end of the 2021 financial year.

Profit after tax (PAT) grew by 43.5per cent to N170.2billion in 2022, compared to N118.7billion recorded the year before.

Consequently, UBA Group Shareholders’ Funds rose to N922.1 billion, as at December 2022, achieving an impressive growth by 14.6percent, compared to prior year.

In the year under consideration, UBA Group cost-to-income ratio dropped to 59.2percent, from over 60percent in prior year, pointing at the Group’s improving efficiency.

In its usual tradition of rewarding shareholders, the bank proposed a final dividend of 90 kobo for every ordinary share of 50 kobo, for the financial year ended December 31, 2022.

The final dividend which is subject to the ratification of the shareholders during its upcoming Annual General Meeting (AGM) will bring the total dividend for the year to N1.10 per share, as the bank had paid an interim dividend of 20 kobo, based on its audited 2022 half year results.

Also worthy of note, UBA recorded a 21.4per cent growth in loans to customers, moving up to N3.4trillion in 2022, whilst customer deposits improved by 22.9per cent to N7.8trillion, compared to N6.4trillion recorded in the corresponding period of 2021, reflecting increased customer confidence, enhanced customer experience, successes from the ongoing business transformation programme and the deepening of its retail banking franchise.

Commenting on the result, the Group Managing Director/CEO, Oliver Alawuba, said notwithstanding the tight and challenging operating environment, UBA continues to deliver significant performance.

He said, “The Group delivered record headline earnings (+29.2percent) and profitability (+31.2prrcent) amid significant headwinds in markets where we are present and a heightened global risk environment. Our record earnings, growth, and robust capital levels supported higher returns for the shareholders. The Group is on course to achieve its strategic goals, and we are confident we will deliver our targets,” Alawuba said.

On the outlook for the year 2023, Alawuba said: “We are strategically positioned to increase our market share in our countries of presence, with expansion to Dubai, United Arab Emirates and strong growth of our digital banking and payment businesses, which is pivotal to the evolving cashless economy in Nigeria. We strive to deliver increasingly attractive returns to our shareholders and continued positive impact in the geographies and economies in which we operate.”

UBA’s Executive Director, Finance and Risk Management, Ugo Nwaghodoh, said going by this recent performance, UBA remains on strong footing and is comfortably positioned to take on more opportunities in Nigeria, Africa and beyond.

United Bank for Africa Plc is a leading pan-African financial institution with presence in the United States of America, the United Kingdom and France and more recently the United Arab Emirates.