According to its most recent financial statements for the first half of 2023, the United Bank for Africa (UBA) has demonstrated a remarkable financial performance. The bank’s profit after tax witnessed a staggering 438% surge, increasing from N70.34 billion in the first half of 2022 to an impressive N378.24 billion in the first half of 2023.
The group’s gross revenue increased by 164%, rising from N372.36 billion in June 2022 to a staggering N981.78 billion in June 2023, which highlights this financial achievement even more. Such financial milestones are a testament to the bank’s robust operational strategies and its commitment to delivering value to its stakeholders.
The financial statements, which were made public on the Nigerian Exchange Limited, provide a comprehensive view of the bank’s financial health and its trajectory. One of the standout figures from the report is the group’s total assets, which grew by 41.68%, increasing from N10.86 trillion at the end of December 2022 to N15.38 trillion.
Furthermore, UBA’s earnings before tax also saw a significant boost. The bank reported a 371% increase in this metric, with the figure rising from N85.75 billion in the same period in 2022 to N404 billion. This robust financial performance translated to a 57.7% annualized return on average equity, a significant leap from the 17.1% reported a year earlier.
Customer trust and confidence in the bank are evident in the growth of customer deposits. The bank reported a 42.4% increase in this metric, with deposits rising from N7.8 trillion at the end of 2022 to N11.14 trillion. This growth not only underscores the bank’s ability to attract and retain customers but also its stability in the financial market.
Shareholders also have a reason to smile. The bank’s internal capital generation capability is evident in the growth of shareholders’ funds, which rose to N1.712 trillion. In recognition of its performance and to reward its shareholders, the board of directors proposed a 50k interim dividend per share, a significant increase from the 20k offered in 2022.
Oliver Alawuba, the Group Managing Director/Chief Executive Officer of UBA, expressed his satisfaction with the bank’s performance. In a statement accompanying the financial results, he emphasized that the bank’s outstanding performance underscores its commitment to consistently deliver value to its shareholders. He attributed the bank’s success to improved retail penetration, enhanced digital payments, and the benefits accrued from the harmonization of currency rates at various access points in Nigeria.
Alawuba further elaborated on the bank’s achievements, stating, “The Group recorded strong double-digit growth in revenues and earnings from its activities.” He highlighted the significant revaluation gains resulting from the harmonization of currency exchange rates in Nigeria. As of June 30, 2023, the exchange rate for UBA’s reporting currency stood at approximately N756 to $1, a notable increase from N465 at the beginning of the year.
He also emphasized the bank’s diversification strategy, which spans across Africa and other parts of the world. The recent expansion of UBA’s global business, especially its foray into the United Arab Emirates, further strengthens the quality of its earnings.
In conclusion, UBA’s financial performance in the first half of 2023 is a testament to its robust operational strategies, commitment to stakeholder value, and its forward-looking approach in the ever-evolving banking landscape. The bank’s focus on sustainability, diversification, and innovation positions it as a leader in the African banking sector, poised for even greater achievements in the future.