Lagos, March 24, 2025 (Naija247news) – United Bank for Africa (UBA) Plc has reported an impressive financial performance for the year ended December 31, 2024, with a profit after tax of N766.6 billion, reflecting a 26.14 percent increase compared to N607.7 billion recorded during the same period in 2023.
Thank you for reading this post, don't forget to subscribe!The bank’s gross earnings for the year soared by 53.6 percent, reaching N3.19 trillion, while its total assets surged by 46.8 percent, climbing to N30.4 trillion.
Despite global economic challenges, UBA also achieved a profit before tax of N803.72 billion, reflecting a 6.1 percent increase. This growth enabled the bank to propose a final dividend of three Naira per share, bringing the total dividend for the year to five Naira, subject to approval by shareholders at the upcoming Annual General Meeting.
Strong Financial Performance
Mr. Oliver Alawuba, Group Managing Director and CEO of UBA, attributed the bank’s success to its strategic focus on earnings growth, asset quality, and market expansion. He noted that UBA’s continued investment in its highly diversified global network was pivotal in delivering high-quality and consistent earnings, despite the ongoing challenges in the global economy.
The bank’s performance is a testament to its ability to grow product and service income and expand its deposit base, which contributed to increasing earnings while maintaining strong spreads and margins. UBA’s total deposit base grew by 42.03 percent, from N17.4 trillion in 2023 to N24.7 trillion in 2024. Additionally, UBA’s total assets increased from N20.7 trillion in 2023 to N30.4 trillion in 2024, reflecting a broad-based growth across its core businesses.
Expanding Global Footprint
One of the key highlights of the bank’s growth is its ex-Nigeria operations, which now account for 51.7 percent of the group’s revenue, up from 31 percent in 2019. This reflects the significant contribution of UBA’s international network, spanning across several African countries and other global markets.
Alawuba emphasized that UBA’s diversified global network has been essential in driving consistent earnings and providing the bank with a competitive edge in the global banking space. The bank’s focus on technology, data analytics, and product innovation has further enhanced its ability to offer superior customer experiences and maintain a leadership position in the market.
Capital Strength and Risk Management
In terms of capital strength, UBA recorded significant improvements. The bank’s capital adequacy ratio remained strong at 31 percent, with shareholders’ funds growing by 68.4 percent, reaching N3.42 trillion. The strong capital base has enabled UBA to navigate global and regional macroeconomic challenges effectively while continuing to maintain strong asset quality.
The bank’s net interest income saw triple-digit growth, and fee and commission income increased by 91.66 percent, contributing to the overall positive financial performance. Additionally, UBA successfully managed its non-performing loan (NPL) ratio, which moderated to 5.58 percent, a marked improvement compared to previous periods. The bank also maintained strong provision coverage, at 81 percent, which further underscores its commitment to maintaining high asset quality.
Outlook for the Future
Mr. Ugo Nwaghodoh, Executive Director of Finance & Risk Management at UBA, noted that the bank is strategically positioned to navigate the prevailing global and regional macroeconomic upheavals. He also highlighted the strong capital levels and the improved asset quality, which will enable the bank to continue on its growth trajectory in the coming years.
Nwaghodoh further emphasized that the bank’s solid capital base and effective risk management strategies ensure that UBA is well-equipped to tackle any potential challenges in the future while continuing to deliver value to its shareholders and customers.
Conclusion
UBA’s impressive results for 2024 demonstrate the bank’s resilience and ability to adapt to changing market conditions. With continued investments in its global network, a strong capital position, and a commitment to innovation, UBA is well-positioned to maintain its leadership in the banking sector and continue delivering strong financial performance in the years ahead.
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