Full Year 2023: UBA Gross Earnings Rises By 143% YoY, Profit Hits N757.7bn

In an impressive and unprecedented performance, United Bank for Africa (UBA) Plc, Africa’s Global Bank, has released its audited financial results for the full year ended December 31, 2023. The results showed exceptional and impressive performance across all its major indicators.

The 2023 financials, which were filed by the bank at Nigerian Exchange Limited (NGx) on Monday, showed a significant increase in gross earnings. It grew from N853.2 billion recorded at the end of 2022 to close at N2.08tn, representing a strong 143 percent growth.

The bank’s total assets also rose significantly by 90.22 percent, doubling the N10 trillion mark, to close at N20.65 trillion in December 2023, up from N10.86 trillion in 2022. This achievement remains a significant milestone in the history of the financial powerhouse.

Despite the highly challenging global economic and business environment, UBA recorded a commendable profit before tax, with exponential growth of 277 percent, closing the year under review at N758 billion, rising from N201 billion recorded at the end of the 2022 financial year. Profit after tax (PAT) grew by 257 percent from N170 billion in 2022 to N608 billion in the year under consideration.

Furthermore, UBA Group Shareholders’ Funds rose from N922 billion as at December 2022 to close the 2023 financial year at N2.0tn, achieving an impressive growth of 120.2%, compared to the prior year.

In the year under consideration, UBA Group cost-to-income ratio dropped from 59.2% in 2022 to 37.2%, indicating the Group’s improving efficiency.

In fulfilment of the promise made by the UBA Group Chairman, 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 upcoming annual general meeting (AGM).

Additionally, UBA recorded a 61.3 percent growth in loans to customers, moving up to N5.5 trillion in 2023, while customer deposits improved by 90.31 percent to N14.9 trillion, compared to N7.8 trillion recorded in the corresponding period of 2022, reflecting 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, 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 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.

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 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% 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.”