Full Year 2023: UBA Gross Earnings Rises by 143% YoY, Profit hits N757.7bn

-Total Assets Rise by 90.2% to N20.65 trillion

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United Bank for Africa (UBA) Plc has announced its audited 2023 financial results, highlighting strong growth and profitability.

UBA’s NGx-filed financial report showed gross earnings soaring from N853.2 billion in 2022 to N2.08 trillion in 2023, surging 143%.

  • Total Assets Double, Reaching N20.65Trillion

Total assets surged by 90.22%, surpassing N10 trillion to hit N20.65 trillion by December 2023, up from N10.86 trillion in 2022.This milestone represents a significant achievement in the financial powerhouse’s history, marking a notable leap forward.

  • Profit Before Tax Soars to N758 Billion

Despite global challenges, UBA’s pre-tax profit soared 277% to N758 billion from N201 billion in 2022. Post-tax profit rose 257% to N608 billion from N170 billion in 2022.

Consequently, UBA Group Shareholders’ Funds rose from N922 billion as at December 2022 to close the 2023 financial year at N2.0tn, growing 120.2%, compared to prior year.

In the year under consideration, UBA Group cost-to-income ratio dropped from 59.2%, in 2022, to 37.2 per cent pointing at the Group’s improving efficiency.

  • Declares N2.30 kobo Final Dividend

UBA’s Chairman, Tony Elumelu, fulfilled his promise with a proposed final dividend of N2.30 per share for 2023.The final dividend is subject to the ratification of the shareholders during its upcoming annual general meeting (AGM).

Bank’s loans to customers rose by 61.3% to N5.5 trillion, and deposits grew by 90.31% to N14.9 trillion, showing increased trust and operational success.

UBA’s Group Managing Director, Oliver Alawuba, expressed delight over the unprecedented results achieved by our Group. The Group’s profit before tax surged to N758 billion from N201 billion the previous year, and the balance sheet expanded to N20.7 trillion from N10.8 trillion.

He added, “Shareholder funds exceeded N2 trillion from N922 billion in 2022, with total assets surpassing N20 trillion (90.2% YoY growth).” Closing FY2023 with a Capital Adequacy Ratio of 32.6%, the Group is well positioned for further business expansion in FY2024.

UBA’s diversified model, backed by contributions from Ex-Nigeria, strengthens market share expansion across Africa. The bank aims to enhance customer service and market presence, meeting stakeholder expectations amidst challenging economic conditions in 2023.

“Our customer service and execution-driven model will expand market share, create shareholder value, and meet stakeholder expectations,” stated the GMD.

UBA’s Executive Director, Finance & Risk Management, Ugo Nwaghodoh, described 2023 as eventful, citing inflation, currency depreciation and other challenges.

“I am delighted however at the strong growth in earnings and profitability recoded in the year. The Group prudently allocated substantial impairment reserves for its risk assets, mindful of macroeconomic challenges affecting the credit portfolio. Consequently, Cost of Risk grew to 3.09% from 0.63% in the prior year,” Nwaghodoh noted.

  • Strategic Outlook for FY2024

For the 2024 financial year, he emphasized UBA’s commitment to sustainable growth, compliance, risk management, and advancing business growth.

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