- UBA records N804bn profit in 2024
At the beginning of the trading week on Monday, the local stock market closed on a positive note, with the All-Share Index rising by 0.56 per cent to 105,551.39 basis points.
This uptick also drove a 0.10 per cent increase in market capitalisation to N66.19 trillion, adding N368 billion to investors’ portfolios.
The positive sentiment at the Nigerian Exchange on Monday, driven by bargain hunting in banking names, including Guaranty Trust Bank, Zenith Bank and United Bank for Africa as their respective share prices appreciated by 6.5 per cent, 5.0 per cent and 2.7 percent.
As measured by market breadth, market sentiment was positive, as 25 tickers gained relative to 21 losers.
On the performance board, Royal Exchange and Livestock led the gainers having appreciated in value by 10.0 per cent and 9.9 per cent, respectively, while NEM Insurance and United Capital posted the most significant losses of the day after their respective share prices dipped by 9.6 per cent and 9.3 per cent.
Sectoral performance was mixed: the Banking, Consumer Goods, and Oil & Gas sectors gained 3.78 per cent, 0.07 per cent and 0.39 per cent, respectively, while the Insurance and Industrial Goods sectors declined by 1.49 per cent and 0.01 per cent.
The Commodity Index remained unchanged. Market breadth stayed positive, as 25 stocks advanced while 22 declined.
On Monday, trading activity was strong, with the number of deals and trading volume rising by 31.83 per cent and 10.90 per cent, respectively, despite a 26.12 per cent drop in transaction value. In total, 440.52 million shares worth N10.47 billion were traded across 13,314 transactions.
Zenith Bank was the most traded stock by volume and value, at 55.06 million units and N2.61 billion, respectively.
UBA records N804bn profit in 2024
Meanwhile, Africa’s Global Bank, United Bank for Africa Plc, has recorded a profit before tax of N803.72 billion representing a 6.1 per cent increase from N757.68 billion recorded at the end of the 2023 financial year.
This was contained in its audited financial results for the full year ended December 31, 2024, with all its major indicators witnessing significant improvement.
The 2024 financials, filed with the Nigerian Exchange Limited on Monday, showed an impressive rise in the bank’s profit after tax which went up by 26.14 per cent to close the year at N766.6 billion, up from N607.7 billion recorded at the end of the 2023 fiscal year.
The Bank’s gross earnings also grew significantly from N2.08tn recorded at the end of the 2023 financial year to N3.19trn in the period under consideration, representing a 53.6 per cent growth.
Like in the previous years, the banks’ total assets also rose remarkably by 46.8 per cent, from N20.65 trillion in 2023, to close at N30.4 trillion in December 2024; signifying a milestone leap for the bank with the largest spread across the continent.
Consequently, UBA Group Shareholders’ Funds rose from N2.030 trillion as at December 2023 to close the 2024 financial year at N3.419 trillion, achieving an impressive growth of 68.39 per cent.
As a result of the impressive performance and in fulfillment of the promise made by the UBA Group Chairman, Tony Elumelu, to shareholders at the last Annual General Meeting, the Bank proposed a final dividend of N3.00 kobo for every ordinary share of 50 kobo, for the financial year ended December 31, 2024.
This brings the total dividend in the year to N5.00. The final dividend is subject to the ratification of the shareholders during its upcoming Annual General Meeting.
UBA’s Group Managing Director/Chief Executive Officer, Oliver Alawuba, who expressed excitement at the results, stated that the 2024 financial performance demonstrates the bank’s continued focus on driving earnings growth, preserving asset quality, expanding business operations and deepening market share.
“Our continued investment in our highly diversified global network allows UBA to deliver high-quality, consistent earnings. Our businesses have been able to grow product and service income and expand our deposit base, allowing the Group to increase earnings while maintaining strong spreads and margins,” Alawuba highlighted.
According to him, “With total deposit increasing by 42.03 per cent from N17.4 trillion in 2023 to N24.7 trillion and total assets hitting N30.4 trillion from N20.7 trillion, the just-released results reflect broad-based growth across all core businesses and were achieved despite prevailing macroeconomic challenges, geopolitical uncertainties, and exchange rate volatilities.”
The GMD expressed excitement at the marked improvement recorded in the bank’s core earnings profile, as he explained that the profit is derived from high-quality income streams from funding intermediation, fees and commissions, thus reflecting strong long-term, sustainable revenue generation capacity.
“Our ex-Nigeria (Rest of Africa & International) operations have expanded significantly over the past five years, now contributing 51.7% of Group revenue, up from 31% in 2019, delivering diversification benefits and further boosting long-term shareholder value. This will continue to grow, as we further explore strategic markets that align with our overall vision. We are currently upgrading our business scope and authorization in France, and considering other viable markets in the short to medium term,” Alawuba noted.
He pointed out the bank’s resolve to invest continuously in technology, data analytics, product innovation, staff training and development, which, according to him, will collectively enhance our customers’ experience.
On his part, UBA’s Executive Director, Finance & Risk Management, Ugo Nwaghodoh, said the bank recorded triple-digit growth in net interest income, resulting in remarkable improvement in net interest margin from 6.83 per cent in 2023 to 9.02 per cent, while also recording strong double-digit growth in fee and commission income lines of 91.66 per cent.
“UBA Group continues to demonstrate strong capital levels, with shareholders’ funds growth of 68.4% to N3.42 trillion and a solid capital adequacy ratio of 31.0%., and as we defensibly position the portfolio to navigate prevailing global and regional macroeconomic upheavals, asset quality improved, with NPL ratio moderating to 5.58%, with strong provision coverage at 81%,” Nwaghodoh noted.
He explained that as the bank navigates evolving risks, its management remains focused on responsible growth, delivering customer-focused value propositions, whilst ensuring compliance with regulatory requirements in all jurisdictions.
United Bank for Africa is one of the largest employers in the financial sector on the African continent, with 25,000 employees group-wide and serving over 45 million customers globally.
Operating in twenty African countries and the United Kingdom, the United States of America, France and the United Arab Emirates, UBA provides retail, commercial and institutional banking services, leading financial inclusion and implementing cutting-edge technology.