UBA earns N201 billion in profit and declares a final dividend of N90 million

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United Bank for Africa (UBA) Plc, Africa’s Global Bank, has announced its audited financial statements for the fiscal year ending December 31, 2022, demonstrating excellent success across major indices.

The bank’s 2022 financials, submitted on Thursday at the Nigerian Exchange Limited (NGx), revealed that gross earnings increased dramatically to N853.2billion from N660.2billion at the end of the 2021 fiscal year, signifying a robust 29.2 percent increase.

Overall assets increased by 27.2 percent, crossing the N10 trillion milestone in December 2022, to finish at N10.9 trillion, up from N8.5 trillion in 2021.
This is a big achievement and milestone in the history of the financial powerhouse.

Despite the highly challenging global economic and business environment, UBA recorded a commendable profit before tax of N200.8 billion, up from N153.01 billion at the end of the 2021 fiscal year; while profit after tax (PAT) increased by 43.5 percent to N170.2 billion in 2022, up from N118.7 billion the previous year. As a result, UBA Group Shareholders’ Funds increased to N922.1 billion as of December 2022, representing a 14.6% increase over the previous year.

UBA Group’s cost-to-income ratio fell to 59.2% in the year under examination, down from more than 60% the previous year, indicating the Group’s growing efficiency.

In keeping with its regular practice of rewarding shareholders, the Bank suggested a final dividend of 90 kobo for each ordinary share of 50 kobo for the fiscal year ending December 31, 2022. The final dividend, which is subject to shareholder approval at the bank’s next Annual General Meeting (AGM), would raise the total dividend for the year to N1.10 per share, after the bank paid an interim dividend of 20 kobo based on its audited 2022 half-year results.

In addition, UBA increased customer loans by 21.4 percent to N3.4 trillion in 2022, up from N6.4 trillion in 2021, while customer deposits increased by 22.9 percent to N7.8 trillion, reflecting increased customer confidence, enhanced customer experience, successes from the ongoing business transformation program, and the deepening of its retail banking franchise.

In response to the results, Oliver Alawuba, Group Managing Director/CEO of UBA, stated that despite the tight and demanding operating environment, UBA continues to generate considerable performance.

“Despite severe challenges in markets where we are present and a heightened global risk climate,” he said, “the Group generated record headline earnings (+29.2%) and profitability (+31.2%).”
Our record profitability, expansion, and strong capital levels all contributed to improved shareholder returns.
The Group is on track to meet its strategic objectives, and we are optimistic that we will meet our targets.

“We have navigated unprecedented macroeconomic headwinds and made significant gains in our diversification strategy and Customer 1st philosophy as we build resilience in our operations across Africa and the Rest of the World to support the mission of providing superior value to our stakeholders. The Group’s Profit after Tax increased by 43.5% to N170.3billion, with underlying growth in our key income lines and moderation in our cost of fund, resulting in robust growth of 14.6% in the Group’s Shareholders’ Funds and stronger liquidity. We continued to sharpen our risk management structure and practices to align with evolving risks”, Alawuba said.
On the outlook for the year 2023, Alawuba said, “we are strategically positioned to increase our market share in our countries of presence, with expansion to Dubai, United Arab Emirates and strong growth of our digital banking and payment businesses, which is pivotal to the evolving cashless economy in Nigeria. We strive to deliver increasingly attractive returns to our shareholders and continued positive impact in the geographies and economies in which we operate”.

Ugo Nwaghodoh, UBA’s Executive Director of Finance and Risk Management, stated that based on this recent success, UBA remains on solid ground and is well positioned to take on additional opportunities in Nigeria, Africa, and beyond.

“UBA Group’s 2022FY performance was buoyed by strong balance sheet growth and improvement in Net interest margin, as Group’s Total Assets and customer deposits grew 27.2% and 22.9% respectively, whilst NIM grew to 5.61% from 5.57%. The continuous rejigging of the Groups’ risk management approach resulted in moderation of the NPL ratio, from 3.6% to 3.1%. The Group continued to rely on lower cost funds, further reducing its cost funds to 2.1%.”
“We are delighted with the strategic progress we have made in FY22 riding on our customers’ trust, the dedication of our people, and the support of our wider partners and stakeholders. The bank remains committed to its business development drive, prudent risk management practices, and we are optimistic to deliver best value for our stakeholders in the days ahead,” he noted.

United Bank for Africa Plc is a significant Pan-African financial institution, serving over 25 million customers through over 1,000 business offices and consumer touch points in 20 African nations and on four continents.

UBA connects people and businesses across Africa through retail, commercial and corporate banking, innovative cross-border payments and remittances, trade finance, and ancillary banking services, with offices in the United States of America, the United Kingdom, and France, and, more recently, the United Arab Emirates.

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