Africa’s Global Bank, United Bank for Africa (UBA) Plc recorded well-rounded performance in its latest audited results with strong growths across core earnings and profitability driving the leading Tier 1 bank’s total assets to above N30 trillion.

Key extracts of the audited report and accounts of UBA for the year ended December 31, 2024 released yesterday at the Nigerian Exchange (NGX) showed that gross earnings grew by 54 per cent, while net profit after tax rose by 26 per cent.

With strong operational performance, the banks’ total assets also rose remarkably by 46.8 per cent from N20.65 trillion in 2023 to N30.4 trillion in December 2024; signifying a milestone leap for the bank with the largest spread across the continent.

Consequently, UBA Group’s shareholders’ funds rose from N2.030 trillion in 2023 to close 2024 at N3.419 trillion, an impressive growth of 68.39 per cent.

As a result of the impressive performance and in fulfilment of the promise made by the UBA Group Chairman, Tony Elumelu, to shareholders at the last annual general meeting, the board of the bank has proposed a final dividend of N3 per share. This brings the total dividend per share for the 2024 business year to N5. This implies a double-digit dividend yield of more than 14 per cent on the bank’s recent offer price of N35 per share. The final dividend is however subject to the ratification of the shareholders during the upcoming annual general meeting.

Investors reacted positively to UBA’s results with increase in buy-side trading nudging the bank’s share price up by 2.72 per cent in the immediate post-release trading yesterday at the stock market.

Gross earnings grew significantly from N2.08 trillion in 2023 to N3.19 trillion in 2024. Profit before tax increased from N757.68 billion to N803.72 billion. After taxes, net profit grew by 26.14 per cent to close the year at N766.6 billion compared with N607.7 billion recorded in 2023.

Group Managing Director, United Bank for Africa (UBA) Plc, Oliver Alawuba, expressed excitement at the results, noting that the 2024 financial performance demonstrated the bank’s continuing focus on driving earnings growth, preserving asset quality, expanding business operations and deepening market share.

According to him, with total deposit increasing by 42.03 per cent from N17.4 trillion in 2023 to N24.7 trillion and total assets hitting N30.4 trillion from N20.7 trillion, the results reflected broad-based growth across all core businesses.

He pointed out that the overall performance underlined the resilience of the bank despite prevailing macroeconomic challenges, geopolitical uncertainties, and exchange rate volatilities.

 “Our continued investment in our highly diversified global network allows UBA to deliver high quality, consistent earnings. Our businesses have been able to grow product and service income and expand our deposit base, allowing the Group to increase earnings, while maintaining strong spreads and margins,” Alawuba said.

He highlighted the marked improvement recorded in the bank’s core earnings profile, pointing out that the profit performance was derived from high-quality income streams from funding intermediation, fees and commissions, thus reflecting strong long-term, sustainable revenues generation capacity.

Said he:  “Our ex-Nigeria- rest of Africa and international, operations have expanded significantly over the past five years, now contributing 51.7 per cent of group revenue, up from 31 per cent in 2019, delivering diversification benefits and further boosting long-term shareholder value. This will continue to grow, as we further explore strategic markets that align with our overall vision. We are currently upgrading our business scope and authorisation in France, and considering other viable markets in the short to medium term”.

He reiterated the bank’s resolve to invest continuously in technology, data analytics, product innovation, staff training and development in order to constantly enhance customers’ experience.

Executive Director, Finance and Risk Management, United Bank for Africa (UBA) Plc, Ugo Nwaghodoh explained that the bank recorded triple digit growth in net interest income, resulting in remarkable improvement in net interest margin from 6.83 per cent in 2023 to 9.02 per cent.

He added that the bank also recorded strong double-digit growth in fee and commission income lines, which rose by 91.66 per cent.

 “UBA Group continues to demonstrate strong capital levels, with shareholders’ funds growth of 68.4 per cent to N3.42 trillion and a solid capital adequacy ratio of 31 per cent, and as we defensibly position the portfolio to navigate prevailing global and regional macroeconomic upheavals. Our asset quality continued to improve, with non-performing loan (NPL) ratio moderating to 5.58 per cent, while having strong provision coverage at 81 per cent”, Nwaghodoh said.

He assured that as the bank navigates evolving risks, management remains focused on responsible growth, delivering customer-focused value propositions, whilst ensuring compliance with regulatory requirements in all jurisdictions.

UBA Group, one of the largest employers in the financial sector on the African continent, boasts of 25,000 employees serving over 45 million customers globally.

Operating in 20 African countries and United Kingdom, United States of America, France and United Arab Emirates, UBA provides retail, commercial and institutional banking services, leading financial inclusion and implementing cutting edge technology.