UBA grows half-year earnings to N1.37tn

United Bank for Africa has posted a 40 per cent growth in gross earnings to N1.37tn in the first half of 2024 from N981.77bn in the prior period of last year.

The pan-African banking group declared an interim dividend of N2 per share for, a 300 per cent increase from the N0.50 declared in the same period of 2023.

This was disclosed in its audited financial results for H1 ended June 30, 2024, filed with the Nigerian Exchange Limited on Monday.

In the period under review, the bank’s interest income surged by 134.3 per cent to N1.003tn, up from N428.2bn in June last year.

Total assets increased by 37.2 per cent, climbing from N20.6tn in December 2023 to N28.3tn, while customer deposits grew by 33.7 per cent to N23.2tn.

The profit before tax stood at N402bn, lower than the N403bn reported in June 2023, while pre-tax profit dipped to N316bn from N378bn in H1 2023.

Shareholders’ funds, however, rose by 47 per cent, increasing from N2.03tn in December 2023 to N2.99tn.

Commenting on the results, UBA’s Group Managing Director/Chief Executive Officer, Oliver Alawuba, emphasised the bank’s commitment to delivering value to its shareholders.

He stated, “UBA Group has continued to deliver strong double-digit growth in high-quality and sustainable banking revenue streams, driven by a focused growth in balance sheet, transaction, and digital banking businesses across geographies.”

He also noted that the bank was making significant investments in technology, data analytics, product research, and innovation to enhance customer experience as it intensifies its customer acquisition drive.

The Executive Director of Finance & Risk, Ugo Nwaghodoh, expressed satisfaction with the bank’s operational efficiency, with a cost-to-income ratio stabilising around the 50 per cent range.

He stated, “Our cost optimisation provides scope for further moderation, as we explore options towards a drastic reduction of our foreign currency-denominated cost components, robotising processes, and applying artificial intelligence.”

Nwaghodoh explained that the group was focused on effectively managing heightened credit, operational, cyber, and information security risks while aligning with sustainability goals.

 He added, “The group has made significant progress and is on course to shore up its share capital to support its medium to long-term aspirations, aligning with regulatory requirements in Nigeria and other jurisdictions.”

The UBA Group has 35 million customers across 1,000 business offices and customer touchpoints in 20 African countries, with a presence in major cities like New York, London, Paris, and Dubai.

The PUNCH reports that in celebration of its 75th anniversary, UBA has rewarded 30 customers with over N17m in its August draw.