The United Bank for Africa (UBA) has achieved a remarkable milestone with a staggering 143% surge in gross revenue. It hit an unprecedented N2.08 trillion in the 2023 fiscal year, marking its highest-ever performance.
During the bank’s 62nd Annual General Meeting (AGM) last Friday, Tony Elumelu, UBA’s Chairman of the Board of Directors, unveiled these impressive figures alongside a Profit After Tax of N607.69 billion. Additionally, the bank proposed a dividend of N2.80 kobo per share to its shareholders.
Elumelu attributed this stellar financial performance to sustained efforts in deposit mobilization. Total deposits soared by 93%, from N8.99 trillion to N17.36 trillion, compared to the previous year.
Highlighting the bank’s robust balance sheet, Elumelu revealed that total assets and shareholders’ funds reached N20.65 trillion and N2.03 trillion, respectively, underlining UBA’s commitment to a well-structured and diversified financial framework.
The surge in net interest income, fueled by an expanded loan portfolio, enhanced net interest margins, and significant contributions from foreign exchange operations, was pivotal in driving impressive financial outcomes. Elumelu also noted the benefits of increased business activity and improved profit margins in the FX operations.
Moreover, the bank witnessed a substantial 61% expansion in its loan book, reaching N5.55 trillion from N3.44 trillion. However, this growth saw the Non-Performing Loans (NPL) ratio rise to 5.85%.
Oliver Alawuba, Group Managing Director/CEO of UBA, emphasized the bank’s commitment to cost discipline amidst challenging macroeconomic conditions. Despite adverse economic factors, he highlighted the resilience of underlying asset quality, reflected in the 5.85% Non-Performing Loans (NPL) ratio.
Alawuba attributed the steady business-as-usual expenses to inflationary trends and strategic investments, underscoring UBA’s unwavering focus on maintaining financial strength and delivering value to its stakeholders in a dynamic market environment.
