United Bank for Africa Posts Remarkable Profit Growth in First Half of 2023

United Bank for Africa (UBA) reports a 438 percent increase in its profit after tax to N378.24 billion in the first half of 2023.

According to the leading bank’s unaudited financial statements for the period,  this was more than N70.34 billion in the corresponding period of 2022.

Gross revenue also expanded significantly, rising by 164 percent to N981.78 billion as of June 2023 when compared to N372.36 billion recorded in June 2022.

UBA’s total assets grew by 41.68% to N15.38 trillion from N10.86 trillion as of the end of December 2022.

The bank’s profit before tax stood at N404 billion, representing an increase of 371 percent when compared to N85.75 billion recorded in the same period of 2022. This translated to an annualized return on average equity of 57.7 percent, a substantial improvement from 17.1 percent recorded in the previous year.

Customer deposits also increased during the period under review, appreciating by 42.4 percent to N11.14 trillion, against N7.8 trillion recorded at the end of 2022.

Also, shareholders’ funds increased to N1.712 trillion, underscoring the group’s robust capacity for internal capital generation.

This explains why the board of directors was happy to propose an interim dividend of 50 kobo per share, compared to 20 kobo in 2022.

In a statement announcing the release of the financial results, the Group Managing Director/Chief Executive Officer, Oliver Alawuba, said the bank’s exceptional performance underscores the group’s unwavering commitment to consistently deliver value to its shareholders.

He further noted that the group made significant strides in digital payments, retail penetration, and benefited from revaluation gains, arising from the harmonization of foreign exchange rates across different access windows in Nigeria.

He said, “The Group recorded strong double-digit growth in revenues and profits from its operations, the result also reflects the effect of sizeable revaluation gains, arising from the harmonisation of currency exchange rates in Nigeria.

“Our reporting currency found a new exchange level at about N756 to $1as of 30 June 2023, compared to N465 at the beginning of the year. The results again demonstrate the benefits of our long-held diversification strategy across Africa and globally.  The growth of our international business, most recently in the UAE, only reinforces this earnings quality.”