United Bank for Africa (UBA) Plc has released its 2023 full year audited financial results, showing a rise in profit before tax to N758 billion, representing 277 per cent; up from N201 billion recorded at the end of 2022 financial year.
The 2023 report filed by the Bank at Nigerian Exchange Limited (NGx) showed an impressive leap as gross earnings grew from N853.2 billion recorded at the end of 2022 to close at N2.08 trillion; representing a strong 143 percent growth.
Profit after tax grew by 257 per cent from N170 billion in 2022, to N608 billion during the period in review.
The bank’s total assets also rose remarkably by 90.22 per cent, doubling the N10 trillion mark to close at N20.65 trillion in December 2023; up from N10.86 trillion in 2022.
UBA Group shareholders’ funds rose from N922 billion as of December 2022 to close the 2023 financial year at N2.0 trillion, achieving an impressive growth of 120.2 percent compared to the prior year.
In the year under consideration, UBA Group’s cost-to-income ratio dropped from 59.2 percent in 2022, to 37.2 percent pointing to the Group’s improving efficiency.
In fulfilment of the promise made by the UBA Group Chairman, Mr Tony Elumelu, to shareholders at the last annual general meeting, the Bank proposed a final dividend of N2.30 kobo for every ordinary share of 50 kobo, for the financial year ended December 31, 2023.
The final dividend is subject to the ratification of the shareholders during its next annual general meeting.
The bank also reported a 61.3 per cent growth in loans to customers, moving up to N5.5 trillion in 2023, while customer deposits improved by 90.31 per cent to N14.9 trillion, compared to N7.8 trillion recorded in the corresponding period of 2022.
The report attributed the growth to increased customer confidence, enhanced customer experience, successes from the ongoing business transformation programme and the deepening of its retail banking franchise.
Commenting on the results, the bank’s GMD/CEO, Mr Oliver Alawuba who said he was pleased by the financial statement described the results as “unprecedented.”
“The Group made a profit before tax of N758 billion from N201 billion in the prior year. The balance sheet also grew to N20.7 trillion from N10.8 trillion in the previous year.
“The Group’s shareholder’s funds crossed N2 trillion from N922 billion in 2022, whilst total assets crossed the N20 trillion mark (90.2% YoY growth). The Group is well positioned for further business expansion in FY2024 having closed FY2023 with a Capital Adequacy Ratio of 32.6 per cent.
“Driven by our customer service and execution-led delivery model, we will continue to expand our market share, create value for our shareholders and meet the expectations of our various stakeholders,” he said.
For his part, the UBA executive director, finance and risk management, Mr Ugo Nwaghodoh, said the 2023 full year was a particularly eventful year, with galloping inflation and currency depreciation ravaging key markets amidst pockets of regional conflicts and security challenges.
“I am delighted however at the strong growth in earnings and profitability recorded in the year. The Group conservatively set up significant impairment reserves against its overall risk assets portfolio considering the latent impact of the macroeconomic headwinds on our credit portfolio. Consequently, Cost of Risk grew to 3.09 per cent from 0.63 percent in the prior year,” he said.
On the expectation for the 2024 financial year, he said: “The Group remains fervently committed to sustainable growth and maintaining its strong compliance and risk management practices culture even as we drive our business through the next phase of growth.”
