Full Year 2023 Financial Report: UBA Gross Earnings Soar by 143%, Profit Hits N757.7bn

…Shareholders’ Funds Hits N2.0tn, achieving an impressive growth of 120.2%.

Oliver Alawuba, Group Managing Director/Chief Executive Officer, United Bank For Africa PLC

Africa’s Global Bank, United Bank for Africa (UBA) Plc, has reported outstanding financial results for the full year ended December 31, 2023, showcasing remarkable growth and resilience across all its major indicators.

The audited financials, filed by the bank at the Nigerian Exchange Limited (NGXx) on Monday, revealed a substantial leap in gross earnings, surging from N853.2 billion in 2022 to a staggering N2.08 trillion in 2023, representing an impressive 143 percent growth.

Furthermore, UBA’s total assets witnessed a remarkable increase of 90.22 percent, surpassing the N10 trillion mark to close at N20.65 trillion in December 2023, up from N10.86 trillion in the previous year. This achievement underscores the bank’s solid performance and significant milestone in its history.

Despite the challenging global economic landscape, UBA recorded commendable profitability, with profit before tax experiencing an exponential growth of 277 percent, reaching N758 billion compared to N201 billion in 2022. Similarly, profit after tax (PAT) surged by 257 percent from N170 billion in 2022 to N608 billion in 2023.

In addition, UBA demonstrated improved efficiency, with the cost-to-income ratio dropping from 59.2 percent in 2022 to 37.2 percent in 2023, reflecting the Group’s commitment to enhancing operational effectiveness.

Fulfilling its commitment to shareholders, UBA proposed a final dividend of N2.30 kobo for every ordinary share of 50 kobo for the financial year ended December 31, 2023, subject to the ratification of shareholders at the upcoming annual general meeting (AGM).

Notably, UBA witnessed a 61.3 percent growth in loans to customers, amounting to N5.5 trillion in 2023. Customer deposits also increased significantly by 90.31 percent to N14.9 trillion, compared to N7.8 trillion recorded in the corresponding period of 2022, indicating enhanced customer confidence and experience.

Commenting on the results, UBA’s Group Managing Director/Chief Executive Officer, Oliver Alawuba, said: “I am very pleased with the unprecedented results achieved by our Group in FY2023. The Group made a profit before tax of N758billion, from N201 billion in the prior year. The balance sheet also grew to N20.7trillion from N10.8trillion in the previous year.

He said, “The Group’s shareholder’s funds crossed N2trillion from N922bn 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 Capital Adequacy Ratio of 32.6%.”

He added that the bank’s diversified business model (Pan-African and International strategy) is justified by the contribution of its Ex-Nigeria business to the Group’s results and reinforces its resolve to expand our market share of customers, funding, digital and transaction banking businesses across Africa.

“Driven by our customer service and execution-led delivery model, we will continue to expand our market share and create value for our shareholders and meet the expectations of our various stakeholders,” the GMD stated.

UBA’s Executive Director, Finance & Risk Management, 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 recoded 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% from 0.63% in the prior year,” Nwaghodoh noted.

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.”

United Bank for Africa Plc, a leading Pan-African financial institution, remains dedicated to providing innovative banking services to over thirty-five (35) million customers across 20 African countries, with a global presence in New York, London, Paris, and Dubai. Through retail, commercial, and corporate banking, UBA continues to connect people and businesses across Africa, facilitating trade finance, cross-border payments, and ancillary banking services.

This remarkable financial performance further solidifies UBA’s position as Africa’s Global Bank and underscores its commitment to delivering value to shareholders, customers, and stakeholders.

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