United Bank for Africa (UBA) Plc has once again demonstrated its strength in the banking sector, reporting remarkable profitability growth for the full year ended December 31, 2024. The bank’s audited financial results, submitted to the Nigerian Exchange Limited (NGX) on Monday, highlighted significant improvements across all key financial indicators.
Strong Earnings Growth and Profitability
UBA’s profit after tax surged by 26.14%, reaching N766.6 billion, up from N607.7 billion recorded in 2023. The bank’s gross earnings also experienced substantial growth, rising by 53.6% from N2.08 trillion in 2023 to N3.19 trillion in 2024.
Similarly, the Bank’s total assets climbed by 46.8%, closing at N30.4 trillion in December 2024, compared to N20.65 trillion recorded in 2023. This marks a significant milestone for the bank, which has the widest geographical presence across Africa.
Shareholders to Benefit from Strong Performance
As part of its commitment to delivering value to shareholders, UBA has declared a final dividend of N3.00 per share for every ordinary share of 50 kobo, bringing the total dividend payout for the year to N5.00 per share. This decision aligns with the UBA Group Chairman Tony Elumelu’s promise at the last Annual General Meeting.
Management’s Perspective on Growth and Performance
UBA’s Group Managing Director/Chief Executive Officer, Oliver Alawuba, expressed excitement over the bank’s outstanding financial performance, emphasizing the institution’s focus on driving earnings growth, preserving asset quality, and expanding business operations.
“Our continued investment in our highly diversified global network allows UBA to deliver high-quality, consistent earnings. Our businesses have been able to grow product and service income and expand our deposit base, allowing the Group to increase earnings while maintaining strong spreads and margins,” said Alawuba.
The CEO further pointed out that UBA’s total deposits increased by 42.03%, from N17.4 trillion in 2023 to N24.7 trillion in 2024. Despite macroeconomic challenges, geopolitical uncertainties, and exchange rate fluctuations, he attributed this performance to broad-based growth across all core business areas.
Alawuba also highlighted the bank’s expansion efforts, particularly in international markets, saying:
“Our ex-Nigeria (Rest of Africa & International) operations have expanded significantly over the past five years, now contributing 51.7% of Group revenue, up from 31% in 2019. This reflects our successful diversification strategy, which continues to boost long-term shareholder value. We are currently upgrading our business scope and authorization in France while exploring other viable markets.”
Robust Financial Position and Asset Quality
UBA’s Executive Director of Finance & Risk Management, Ugo Nwaghodoh, underscored the bank’s strong capital base and improved asset quality.
“UBA Group continues to demonstrate strong capital levels, with shareholders’ funds increasing by 68.4% to N3.42 trillion and a capital adequacy ratio of 31.0%. Additionally, our net interest margin improved from 6.83% in 2023 to 9.02%, supported by triple-digit growth in net interest income,” Nwaghodoh noted.
He further stated that UBA’s non-performing loan (NPL) ratio moderated to 5.58%, with a strong provision coverage of 81%, reflecting the bank’s proactive risk management approach amid global economic uncertainties.
Strategic Focus on Innovation and Technology
UBA continues to prioritize investments in technology, data analytics, product innovation, and staff training, all of which aim to enhance customer experience and drive efficiency.
“As we navigate evolving risks, our management remains focused on responsible growth, delivering customer-centric value propositions, and ensuring compliance with regulatory requirements in all jurisdictions,” added Nwaghodoh.
UBA’s Position as a Leading African Financial Institution
With a workforce of 25,000 employees and serving over 45 million customers globally, UBA maintains a strong presence in twenty African countries, the United Kingdom, the United States, France, and the United Arab Emirates. The bank remains committed to financial inclusion, technological advancement, and innovative banking solutions, reinforcing its reputation as Africa’s Global Bank.
As UBA expands its footprint and strengthens its financial position, shareholders and investors can anticipate sustained growth and value creation in the coming years.
