Global financial institution, United Bank for Africa (UBA) Plc grew its pre-tax profit by 371 per cent to N404 billion in the first half.
The audited results for the first half ended June 30, 2023 released yesterday at the Nigerian Exchange (NGX) showed that UBA recorded triple-digit growths across major income lines, as the pan-African banking group continued to show substantial progress in increasing the contribution and market share from its subsidiaries in Africa and globally.
The six-month report showed that UBA’s profit before tax rose from N85.75 billion in first half 2022 to N404 billion in first half 2023. Profit after tax jumped by 437.8 per cent to N378.24 billion in first half 2023. Gross earnings leapt by 164 per cent to N981.78 billion in June 2023 as against N372.36 billion in comparable period of June 2022.
The impressive performance prompted the board of the bank to increase interim dividend payouts by 150 per cent. Shareholders will receive N17.1 billion as interim dividend for the first half 2023 as against N6.84 billion paid for first half 2022. This implies a dividend per share of 50 kobo in first half 2023 as against 20 kobo paid for first half 2022.
The balance sheet indicated that total assets continued on upward trajectory, rising above the N15 trillion mark. It hit N15.38 trillion, representing a 41.7 per cent leap up from N10.86 trillion recorded at the end of last year. Customer deposits also rose by 42.4 per cent to N11.14 trillion in the period under consideration; as against N7.8 trillion recorded at the end of 2022 while shareholders’ funds increased to N1.712 trillion reflecting the group’s strong capacity for internal capital generation.
The bank’s operating income equally grew by 206.6 per cent to N783.96 billion in June 2023; higher than N255.67 billion reported a year earlier.
The report indicated annualised return on average equity of 57.7 per cent as against 17.1 per cent it recorded last year.
Group Managing Director, United Bank for Africa (UBA) Plc, Oliver Alawuba said the exceptional performance underscored the group’s commitment to consistently deliver value to its shareholders.
According to him, the group made progress in digital payments, retail penetration and also benefitted from the effect of revaluation gains, arising from the harmonization of foreign exchange rates at the different access windows.
He said: “The group recorded strong double-digit growth in revenues and profits from its operations, the result also reflects the effect of sizeable revaluation gains, arising from the harmonization of currency exchange rates in Nigeria.
“Our reporting currency found a new exchange level at about N756 per dollar as of 30th June, compared to N465 at the beginning of the year. The results again demonstrate the benefits of our long-held diversification strategy across Africa and globally. The growth of our international business, most recently in the UAE, only reinforces this earnings quality.
“Our business is on a steady growth trajectory, as we further strengthen our risk management traditions and practices necessary technology investments to deliver premium service to our customers.
“We have also continued to finance landmark projects in critical sectors of the economies across Africa, facilitating intra-Africa trade with our valuable offerings and provide a versatile last-mile distribution network for Africa-bound donor and multilateral agency funds.”
UBA’s Executive Director Finance & Risk, Ugo Nwaghodoh, said the half year financial numbers reflect an excellent performance across key metrics, as the bank diligently executes its strategic priorities.
“Our half year 2023 financial numbers reflect excellent performance across key metrics, as we diligently execute our priorities for the year. Annualised return on average equity at 57.7 per cent was bolstered by improved operating income and revaluation gains.”
“It also pointed out that the group maintains robust capital buffers to support business growth and loss absorbency. The group’s shareholders’ funds stood at N1.7 trillion, with a capital adequacy ratio of 36.4 per cent,” Nwaghodoh said.
Credit: thenationonlineng.net
