.As shareholders hail bank’s early interim dividend
.’It’s committed to delivering returns on investment
COMFORT EKELEME, Business Editor
Shareholders of United Bank for Africa (UBA) Plc have applauded the management and Board of of the bank for the earlier interim dividend of N2 while proposing a final dividend of N3 bringing the total dividend to N5.
President, Pragmatic Shareholders Association, Mrs. Bisi Bakare who spoke on behalf of the bank’s numerous shareholders said that this development is a demonstration of commitment to deliver returns to shareholders which the bank has been consistently doing.
According to her, UBA has given good returns to the shareholders year on year.
She commended an impressive rise in the bank’s Profit After Tax which grew by 26.14per cent to close at N766.6billion, and the gross earnings of N3.19 trillion in 2024 compared to N2.08 trillion in the previous year.
In addition she said, UBA Group Shareholders’ funds grew by 68.39per cent, from N2.03 trillion to N3.419 trillion.
Mrs Bakare said, “No doubt this is an improved result and I give kudos to the board and management for the excellent results.
UBA on Monday, released 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 (NGx) 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 N2.08trillion recorded at the end of the 2023 financial year to N3.19trillon 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.
Despite the highly challenging global economic and business environment, UBA recorded a Profit Before Tax PBT of N803.72 billion representing a 6.1 per cent increase from N757.68 billion recorded at the end of the 2023 financial year.
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 fulfilment 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 however subject to the ratification of the shareholders during its upcoming Annual General Meeting (AGM).
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, geo-political 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 revenues generation capacity.
“Our ex-Nigeria (Rest of Africa & International) operations have expanded significantly over the past five years, now contributing 51.7 per cent of Group revenue, up from 31per cent 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 68.4per cent to N3.42 trillion and a solid capital adequacy ratio of 31.0per cent ., and as we defensibly position the portfolio to navigate prevailing global and regional macroeconomic upheavals, asset quality improved, with NPL ratio moderating to 5.58per cent, with strong provision coverage at 81per cent”, 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.
