Aduragbemi Omiyale
By Aduragbemi Omiyale
The board of United Bank for Africa (UBA) Plc has raised the bar in the interim dividend payout for the first half of 2023, increasing it to 50 Kobo from 20 Kobo in the same period of 2023.
This was after the bank recorded triple-digit growth in the bottom line, as the profit before tax (PBT) jumped by 371 per cent to N404 billion from the N85.75 billion recorded in the first half of 2022, translating to an annualised Return on Average Equity of 57.7 per cent as against 17.1 per cent a year earlier, as the profit after tax (PAT) went up by 437.8 per cent to N378.24 billion.
As for the balance sheet, the total assets continued a strong upward trajectory, rising by 41.7 per cent to N15.38 trillion from the N10.86 trillion recorded at the end of last year.
In the period under consideration, customer deposits also rose by a sharp 42.4 per cent to N11.14 trillion from N7.8 trillion recorded at the end of 2022, and shareholders’ funds increased to N1.712 trillion, reflecting the group’s strong capacity for internal capital generation.
As for the top line, UBA also delivered an outstanding performance for the half year ended June 30, 2023, according to the financial statements submitted to the Nigerian Exchange (NGX) Limited on Tuesday amid the tough global macroeconomic backdrop and geo-political challenges.
Gross earnings went up by 164 per cent to N981.78 billion from N372.36 billion in the first six months of 2022, with operating income growing by 206.6 per cent to N783.96 billion from N255.67 billion.
Commenting on the results, the Group Managing Director of UBA, Mr Oliver Alawuba, said the exceptional performance underscored the company’s commitment to consistently deliver value to its shareholders.
He added that UBA made progress in digital payments and retail penetration and also benefitted from the effect of revaluation gains arising from the harmonization of foreign exchange rates at the different access windows in Nigeria.
“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 to $1 as of June 30, 2023, compared with 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 providing a versatile last-mile distribution network for Africa-bound donor and multilateral agency funds.
“The three core geographical pillars of our business (Nigeria, Rest of Africa and Rest of the World) are making strong contributions to the Group profit, further justifying our global strategy and business positioning across Africa, UAE, France, UK and USA, and demonstrating the benefits of positioning UBA as the financial intermediary for Africa and the rest of the world,” Mr Alawuba stated.
On the plans for the rest of the year, he said, “As we approach the last quarter of the year, the Group remains strategically positioned to sustain the strong performance, consolidating on H1 2023 results, to deliver superior returns to our esteemed shareholders.”
On his part, the Executive Director of UBA for Finance and Risk, Mr Ugo Nwaghodoh, said, “Our HY2023 financial numbers reflect excellent performance across key metrics as we diligently execute our priorities for the year. Annualized return on average equity at 57.7 per cent was bolstered by improved operating income and revaluation gains.”
