United Bank for Africa (UBA) Plc has said that it is firmly committed to achieving sustained profitability by the end of the second half of 2023.
The assertion followed the bank’s exceptional performance in the first half of the 2023 financial year.
Recall that in its first half results ended June 30, 2023, UBA reported a profit before tax of N404 billion, representing a rise by 371 per cent compared to N85.75 billion recorded in the first half of 2022.
The result also showed that operating income grew by 206.6 per cent to N783.96 billion in June 2023; higher than N255.67 billion reported a year earlier, just as it delivered a 164 per cent growth in its gross earnings which rose to N981.78 billion as of June 2023, up from N372.36 billion recorded last year in June 2022.
With that performance, the bank is currently the most profitable financial institution in Nigeria.
Addressing participants at the H1 2023 Investor Conference Call Presentation held recently in Lagos, the UBA’s GMD/CEO, Mr Oliver Alawuba, said the bank’s impressive performance was characterised by robust revenue generation, prudent cost management, and strategic capital allocation.
He said the achievements provided the bank with a solid foundation upon which to further enhance its position as a leading financial institution in Africa and beyond.
He said the financial statement “reflect our ability to finance future growth and help individual customers, families, businesses and non-profit organisations to carry out their projects.”
“At UBA, we remain focused on our Customer First philosophy and growing our share in the various markets we operate.
“Thanks to our scale, geographic footprint and business diversification, we have numerous opportunities to grow, which should allow us to remain our customers’ first choice and to make the most of those opportunities, our focus is on implementing plans that enhance the existing network across all the countries and businesses and improving the profitability of our core businesses through disciplined capital allocation,” he added.
He further promised that notwithstanding the accomplishments in the first half of the year, the bank is committed to rendering excellent services to its customers and staying focused on its strategy and corporate objectives.
Recently too, the bank announced the rolling out of a special financing initiative aimed at powering the growth of small and medium scale enterprises (SMEs) all over Africa. In partnership with the African Continental Free Trade Area (AfCFTA) secretariat, UBA is to inject up to $6 billion into eligible SMEs across Africa over the next three years.
“Under the initiative, SMEs specialising in agro-processing, pharmaceuticals, automotive and transport, and logistics will have access to tailored financing solutions. This move is especially beneficial for businesses that operate within these sectors which heavily rely on imports,” Alawuba said.
UBA’s executive director, finance and risk management, Ugo Nwaghodoh, spoke of the bank’s investment in digital banking, adding that the bank continues to gain traction from its huge investments in technology.
“Our investments in state-of-the-art technology continue to yield expected results, evident in the huge boost of our digital banking income, which grew 53.7 per cent year-on-year to N57.2 billion.
“These gains have enabled us to optimise net earnings amid the accelerating inflationary pressure, currency devaluation, and increased regulatory induced cost,” he said.
He added that focusing on the bank’s sustained growth across its African markets, UBA remains focused towards delivering innovative and personalised financial products and services that cater for the unique needs of its diverse customer base.
