UBA posts 40% earnings growth in H1 2024, declares N2.00 interim dividend

The bank announces a 40% rise in earnings for H1 2024, declaring an N2.00 interim dividend amidst challenging macroeconomic conditions

[dropcap]U[/dropcap]nited Bank for Africa (UBA) Plc, Africa’s global bank, has released its audited financial results for the first half of 2024, demonstrating significant growth across key financial indicators.

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The results, published on the Nigerian Exchange Limited (NGX), show a 39.6% rise in gross earnings, from N981.77 billion in 2023 to N1.37 trillion by June 2024, despite macroeconomic and geopolitical challenges.

Interest income surged by 134.3% to N1.003 trillion, up from N428.2 billion recorded the previous year. The bank’s total assets also grew by 37.2%, reaching N28.3 trillion in June 2024, compared to N20.6 trillion in December 2023. Customer deposits climbed 33.7%, from N17.3 trillion to N23.2 trillion within the same period.

However, profit before tax (PBT) saw a slight dip from N403 billion in June 2023 to N402 billion in June 2024, while profit after tax (PAT) fell from N378 billion to N316 billion.

Despite this, shareholders’ funds grew by 47%, increasing from N2.03 trillion in December 2023 to N2.99 trillion.

In recognition of its performance, UBA’s Board of Directors declared an interim dividend of N2.00 per share, a 300% increase from the N0.50 per share declared in the same period last year.

UBA’s Group Managing Director/Chief Executive Officer, Mr. Oliver Alawuba, expressed pride in the bank’s consistent growth.

He highlighted that UBA Group delivered strong double-digit growth in sustainable banking revenue streams, driven by a balanced growth across geographies. He noted that net interest income expanded by 143% year-on-year to N675 billion, reflecting the strength of UBA’s intermediation business.

Alawuba further emphasised UBA’s commitment to customer acquisition, investments in technology, and innovations aimed at enhancing customer experience.

Executive Director of Finance & Risk, Ugo Nwaghodoh, also lauded the bank’s operational efficiency, with the cost-to-income ratio stabilising around 50%. He underscored UBA’s efforts to manage credit, operational, and cyber risks while advancing its sustainability goals.

As UBA looks ahead, the bank is set to expand its capital base to meet regulatory requirements and support its long-term aspirations.

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UBA Plc remains a leading Pan-African financial institution, with over 35 million customers across 20 African countries and international operations in New York, London, Paris, and Dubai.

The bank continues to facilitate cross-border payments, trade finance, and innovative banking services across the continent.