UBA well capitalised with over N2tr shareholders’ fund-GMD

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The Group Managing Director/CEO of United Bank for Africa (UBA) Plc, Oliver Alawuba, announced during the bank’s full year 2023 investor conference call in Lagos that the institution is robustly capitalized, with shareholders’ funds surpassing N2 trillion.

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Alawuba highlighted that UBA will soon raise the necessary capital as per directives from the Central Bank of Nigeria (CBN).

Despite facing challenging geopolitical and economic landscapes, Alawuba emphasized that UBA achieved record earnings for the year.

“Gross earnings saw a year-on-year increase of 143.3% to N2.1 trillion, while profit before tax soared by 277.2% to N757.7 billion, firmly establishing UBA as a prominent financial institution,” Alawuba stated.

He attributed this growth to a substantial rise in net interest income driven by loan portfolio expansion, improved net interest margins, and significant contributions from foreign exchange operations, benefiting from heightened business activities and enhanced profit margins.

Addressing operating costs, UBA’s Executive Director of Finance and Risk Management, Ugo Nwaghodoh, noted a 69% increase, primarily attributed to foreign operations and currency-denominated expenses amidst adverse macroeconomic conditions.

Nwaghodoh highlighted the positive financial indicators: operating income surged by 168% to N1.6 trillion, while profit before tax increased from N201 billion in 2022 to N758 billion in 2023, with profit after tax rising to N608 billion from N170 billion in the previous year.

Additionally, total assets expanded by 90% to N20.7 trillion, with deposits growing by 93% to N17.4 trillion.

Looking ahead to the financial year 2024, Nwaghodoh provided guidance, projecting deposit and loan growth rates of about 20%, a cost of risk of approximately 3.8%, a non-performing loan ratio around 4.5%, a return on average equity of 30%, a return on assets of 3%, a capital adequacy ratio of 30%, a cost to income ratio of about 45%, and a net interest margin of approximately 7.5%.

UBA’s outstanding performance was further recognized externally, with accolades such as the African Champion of the Year 2023 at the Africa Financial Industry Summit (AFIS) in Togo and Bank of the Year Africa 2023 by The Banker, United Kingdom. Additionally, eight UBA subsidiaries were awarded Bank of the Year by The Banker, United Kingdom, including UBA Cameroon, UBA Chad, UBA Ghana, UBA Cote d’Ivoire, UBA Mozambique, UBA Congo, UBA Sierra Leone, and UBA Tanzania.


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Gbenga Samson
Gbenga Samsonhttp://ThisDayLive.com
Samson Gbenga Salau [Editorial Board Adviser] Gbenga Samuel Salau is a professional journalist with over 17 years experience in journalism, he is a graduate of Communication and Language Arts, University of Ibadan. On completion of his youth service, he joined The Guardian as a freelance journalist and was later absorbed as a staff. While in the University, he was a campus journalist reporting for the Independence Hall and Faculty of Arts Press Clubs. As a campus journalist, he won the following awards; Independence Hall Press Best News writer; University of Ibadan Union of Campus Journalists’ Best News Reporter/Writer; First Runner-up, Reuben Abati Award for Investigative Journalism; Association of Faculty of Arts Students’ Press Best Reporter; University of Ibadan Union of Campus Journalists’ Best Political Writer; Winner, Reuben Abati Award for Investigative Journalism, and University of Ibadan Union of Campus Journalists’ Best Interviewer. He served the Association of Communication and Language Arts Students, as the Public Relation Officer, the same year he was appointed the News Editor of the Association of Faculty of Arts Students Press. The following session, he was made the General Editor, and a member of the 13-man University of Ibadan Students’ Union Transition Committee. As a reporter in The Guardian, in 2014, he won the Promasidor Quill Award Best Report on Nutrition and DAME Business Reporting category. In the 2015 edition of the Promasidor Quill Award, he won the best Report on Nutrition and Brand Advocate Categories, while in 2016, he won the NMMA Print Journalist of the Year, first runner-up Golden Pen Reporter of the Year and SERAs CSR Awards. Gbenga Salau loves traveling, reading, and listening to songs with good lyrics no matter the genre.

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