United Bank for Africa Plc (UBA), one of Africa’s leading financial institutions, posted a robust financial performance for the year ended 31 December 2024 with robust growth in both topline and bottom-line metrics driven by strong interest income, solid non-interest earnings, and sustained cost management across its operations.
According to the Group’s audited consolidated financial statements, gross interest income rose by 120.5 percent to N2.37 trillion, up from N1.08 trillion in 2023. This increase was largely supported by improved yields on both amortised cost and fair value through other comprehensive income (FVOCI) securities, which contributed N2.30 trillion, compared to N1.07 trillion in the previous year.
Interest income on fair value through profit or loss (FVTPL) instruments also grew from N2.1 billion in 2023 to N74.1 billion in 2024 to reflect the bank’s enhanced trading activity and favourable market conditions during the year.
Interest expense, however, increased by 128.1 percent to N839.25 billion from N367.81 billion, resulting in a net interest income of N1.53 trillion, representing a 116.3 percent year-on-year growth from N707.54 billion recorded in 2023.
Solid Risk Management Amid Loan Growth
The Group maintained prudent credit risk management practices, with impairment charges on loans rising to N216.97 billion, up from N144.05 billion in 2023.
Impairment on other financial assets stood at N17.55 billion while modification losses on purchased or originated credit-impaired assets amounted to N19.05 billion, which did not occur in the previous year.
Despite these charges, net interest income after impairment rose significantly to N1.28 trillion, up by 154.9 percent from N500.91 billion in 2023.
Strong Performance in Non-Interest Revenue
UBA recorded a 15.6 percent increase in fee and commission income, which rose to N589.00 billion from N307.31 billion. After accounting for commission expenses of N233.99 billion, net fee and commission income stood at N355.00 billion, up from N189.06 billion in 2023.
While net trading and foreign exchange gains moderated year-on-year from N659.26 billion to N181.76 billion, other operating income increased to N46.08 billion, compared to N33.47 billion a year earlier.
This diversification in non-interest income streams helped cushion FX-related volatility.
Cost Growth Contained Amid Inflationary Pressure
Total operating expenses rose, as expected, in an inflationary environment. Employee benefit expenses increased to N314.66 billion (2023: N182.81 billion) while other operating expenses climbed to N682.91 billion from N372.80 billion in the prior year.
Despite these increases, the Group maintained profitability, supported by scale efficiency, improved asset yields, and enhanced revenue diversification.
Profit Before Tax Hits N803.73 Billion
UBA reported a profit before tax of N803.73 billion, representing a 6.1 percent growth from N757.68 billion recorded in 2023. Income tax expense was lower at N37.16 billion, compared to N149.98 billion in the previous year.
Consequently, profit after tax rose to N766.57 billion, a 26.1 percent year-on-year growth from N607.70 billion recorded in 2023.
Outlook: Strong Foundation for Sustainable Growth
UBA’s performance in 2024 reaffirms its position as a leading pan-African financial institution with strong earnings capacity, resilient asset quality, and a well-diversified income structure.
The Group’s focus on technology-driven banking, regional expansion, and prudent risk management positions it for sustained profitability in 2025 and beyond.
With over 24 African countries in its network, UBA continues to leverage cross-border synergies to deepen financial inclusion and drive value across its key markets.
