UBA Soars to New Heights in 2024, Demonstrating Pan-African Strength

United Bank for Africa (UBA) has delivered a stellar performance in its audited financial results for the year ended December 31, 2024, showcasing robust growth across all key financial indicators. The pan-African banking giant has navigated a complex global economic landscape to achieve significant increases in profitability, earnings, and asset base, solidifying its position as a leading financial institution on the continent.

UBA’s financial statement reveals a remarkable 26.14% surge in profit after tax, climbing to approximately $522 million from $414 million in the previous year. This impressive bottom-line growth is underpinned by a substantial 53.6% increase in gross earnings, which reached $2.17 billion compared to $1.42 billion in 2023. The bank’s scale and reach are further emphasized by the significant expansion of its total assets by 46.8%, growing from $14.1 billion to $20.7 billion over the year.

This strong financial performance is mirrored in the growth of shareholders’ funds, which saw an exceptional 68.39% increase, rising from $1.38 billion to $2.33 billion. This substantial growth underscores UBA’s financial strength and its capacity to generate sustainable value for its investors. In recognition of this performance and commitment to shareholder returns, the board has proposed a final dividend of $4.08 per share, bringing the total dividend for the year to an attractive $6.80 per share, inclusive of the interim dividend.

Oliver Alawuba, the Group Managing Director/CEO of UBA, attributed this success to the bank’s diversified global network, strategic investments in key areas, and a consistent focus on driving earnings growth while diligently maintaining asset quality. He emphasized the bank’s ongoing commitment to leveraging technology, data analytics, fostering product innovation, and investing in staff development to continuously enhance the customer experience.

A significant highlight of UBA’s performance is the increasing contribution of its operations outside Nigeria, which now account for an impressive 51.7% of group revenue, a substantial increase from 31% in 2019. This demonstrates the effectiveness of UBA’s pan-African strategy and its ability to tap into growth opportunities across the continent and beyond. The bank is actively exploring strategic markets, including an upgrade of its business scope in France, and is considering further expansion into other viable regions.

Further analysis of the financial results reveals a triple-digit growth in net interest income, leading to a significant improvement in the net interest margin from 6.83% in 2023 to an impressive 9.02%. The bank also witnessed strong growth in its fee and commission income, which increased by a notable 91.66%.

Ugo Nwaghodoh, the Executive Director for Finance and Risk Management at UBA, highlighted the bank’s strong capital levels, with shareholders’ funds growing by 68.4% to $2.33 billion and a robust capital adequacy ratio of 31.0%. This solid capital position provides a strong foundation for continued growth and success, ensuring the bank’s resilience and ability to capitalize on future opportunities. Nwaghodoh emphasized the bank’s unwavering focus on responsible growth, delivering customer-centric value propositions, and ensuring strict adherence to all regulatory requirements.

Benchmarking Against Peers:

UBA’s impressive performance aligns with a broader trend of resilience and growth observed in other leading African financial institutions. For instance, Access Bank, another major player in the Nigerian and pan-African banking space, also reported significant growth in its recent financial year, driven by similar factors such as strategic expansion, digital innovation, and a focus on diverse revenue streams. Similarly, Standard Bank Group, with its extensive presence across Southern Africa, has demonstrated its ability to navigate economic headwinds and deliver strong results through its diversified operations and customer-centric approach.

Looking Ahead:

With a presence in 20 African countries, along with operations in the UK, the US, France, and the UAE, UBA stands as one of the largest and most geographically diversified financial institutions in Africa, serving over 45 million customers globally. The bank’s strong 2024 performance underscores its resilience, adaptability, and the effectiveness of its strategic initiatives. As UBA continues to invest in technology, expand its reach, and deepen its engagement with customers, it is well-positioned to maintain its growth trajectory and further solidify its leadership position in the African financial landscape. The proposed dividend payout will undoubtedly be welcomed by shareholders, reflecting the bank’s commitment to sharing its success and building long-term value.