Babatunji Wusu –
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Record Net Profit: UBA’s after-tax profit surged to N766.6 billion, a 26.1% increase from N607.7 billion in 2023.
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Strong Interest Income Growth: Net interest income more than doubled, rising 116.4% to N1.5 trillion due to higher lending rates.
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Dividend Payout: The bank announced a N3 per share final dividend, bringing the total annual dividend to N5 per share and total shareholder payout to N171 billion.
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Higher Loan Loss Provisions: UBA set aside N217 billion (+50.6%) to cover potential loan defaults amid Nigeria’s economic challenges.
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Surge in E-Banking Revenue: Fees and commission income grew 91.7%, driven by increased usage of ATMs, POS terminals, mobile banking, and digital payments.
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Forex Losses: Net trading and FX gains fell 72.4% to N181.1 billion, impacted by a N342.2 billion net fair value loss on derivatives.
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Total Assets: Grew significantly to N30.3 trillion, up from N20.7 trillion in the previous year.
United Bank for Africa (UBA) has reported its highest-ever net profit for the 2024 financial year, with after-tax profit rising to N766.6 billion, marking a 26.1% increase from the N607.7 billion recorded in 2023. The bank’s pre-tax profit also climbed to N803.7 billion.
Following the announcement, UBA’s stock price jumped 5% on the Nigerian Exchange, as investors reacted positively to the N3 per share final dividend declaration. This brings the total dividend for 2024 to N5 per share, representing a record total payout of N171 billion to shareholders.
UBA, like other Nigerian banks, benefited from the Central Bank of Nigeria’s aggressive monetary policy tightening, which increased lending rates. The bank’s net interest income, a key profitability metric, surged by 116.4% to N1.5 trillion, reflecting higher loan pricing.
To mitigate risks associated with Nigeria’s ongoing economic challenges, UBA raised its loan loss provisions by 50.6% to N217 billion, preparing for potential borrower defaults. Meanwhile, e-banking revenue saw a 91.7% increase, fueled by a rise in digital transactions through ATMs, POS terminals, mobile banking, and card payments.
However, foreign exchange and trading losses impacted earnings, with net FX gains plunging 72.4% to N181.1 billion due to a N342.2 billion fair value loss on derivatives.
UBA also increased employee benefit expenses by 72.1%, while operating costs jumped to N682.9 billion, up from N372.8 billion.
The bank, which operates in 20 African countries, along with the UK, USA, UAE, and France, now serves over 45 million customers globally.
With total assets rising to N30.3 trillion (compared to N20.7 trillion a year earlier) and a total comprehensive income of N1.5 trillion, UBA continues to solidify its position as one of Africa’s leading financial institutions.
