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UBA Plc Shatters Financial Records with 143% Surge in Gross Earnings, Total Assets Exceed N20 Trillion in 2023

UBA Plc Shatters Financial Records with 143% Surge in Gross Earnings, Total Assets Exceed N20 Trillion in 2023

09 April, 2024

In a groundbreaking display of financial prowess, Africa's leading financial institution, United Bank for Africa (UBA) Plc, has unveiled its audited financial results for the full year ending December 31, 2023, showcasing remarkable performance across all key metrics.

The 2023 financial report, filed by UBA at the Nigerian Exchange Limited (NGx) on Monday, revealed a staggering surge in gross earnings, catapulting from N853.2 billion in 2022 to an impressive N2.08 trillion, marking an extraordinary 143 percent growth.

Furthermore, the bank's total assets witnessed a remarkable ascent of 90.22 percent, breaching the N10 trillion threshold to reach N20.65 trillion by December 2023, a substantial leap from N10.86 trillion in the previous year.

Despite the turbulent global economic landscape, UBA achieved a commendable profit before tax, soaring by 277 percent to N758 billion in 2023 from N201 billion in 2022. Similarly, the profit after tax (PAT) surged by 257 percent from N170 billion to N608 billion during the same period.

Moreover, UBA Group's Shareholders' Funds surged from N922 billion in December 2022 to close the 2023 financial year at N2.0 trillion, marking an impressive growth of 120.2% compared to the preceding year.

During the year under review, UBA Group's cost-to-income ratio plummeted from 59.2% in 2022 to 37.2%, underscoring the Group's enhanced operational efficiency.

In line with the commitment made by UBA Group Chairman, Tony Elumelu, at the previous Annual General Meeting, the Bank proposed a final dividend of N2.30 kobo per ordinary share of 50 kobo for the financial year ended December 31, 2023, pending shareholders' ratification at the upcoming annual general meeting (AGM).

Noteworthy achievements include a 61.3 percent surge in loans to customers, reaching N5.5 trillion in 2023, and a 90.31 percent increase in customer deposits to N14.9 trillion compared to N7.8 trillion in 2022, reflecting heightened customer confidence and successful business transformation initiatives.

Commenting on the stellar results, UBA's Group Managing Director/Chief Executive Officer, Oliver Alawuba, expressed his satisfaction with the unprecedented performance in FY2023, highlighting a substantial profit before tax of N758 billion and a robust balance sheet growth to N20.7 trillion.

Alawuba emphasized the Group's readiness for further expansion in FY2024, boasting a Capital Adequacy Ratio of 32.6% and reaffirming its commitment to market share growth and value creation across Africa.

UBA's Executive Director of Finance & Risk Management, Ugo Nwaghodoh, acknowledged the challenging macroeconomic environment in 2023 but lauded the bank's strong earnings and profitability growth amidst inflation and currency fluctuations.

The statement highlights the Group's cautious approach to managing risks in its credit portfolio by setting up impairment reserves to account for potential losses due to macroeconomic headwinds. This has led to an increase in the Cost of Risk to 3.09% compared to the previous year.

Looking ahead to the 2024 financial year, the Group is focused on sustainable growth while maintaining strong compliance and risk management practices. Despite challenges, UBA remains committed to driving its business forward through the next phase of growth.

As UBA continues its strategic journey towards sustainable growth and customer-centric innovation, the bank remains poised to deliver exceptional value to its stakeholders and consolidate its position as a leading financial powerhouse in Africa and beyond.

UBA is a prominent Pan-African financial institution with a wide reach, serving millions of customers across multiple countries. The bank offers a range of banking services, including retail, commercial, and corporate banking, as well as innovative cross-border payments, trade finance, and other ancillary services. With a presence in key global financial centers, UBA plays a crucial role in connecting people and businesses across Africa.