The United Bank of Africa (UBA) achieved a new height in profit as the global bank recorded N2.1 trillion profit before tax and declared an N2.80 kobo dividend to its shareholders for the 2023 financial year, a feat the Group Managing Director of the UBA Group, Oliver Alawuba, said the bank would sustain.
Speaking at the 62nd yearly general meeting (AGM) of the bank in Abuja, Alawuba said the bank soared above prevailing economic circumstances to deliver excellent results.
He said: “Against a backdrop of challenging and volatile geopolitical and economic conditions, your Bank delivered another year of record earnings. In 2023, our gross earnings and profit before tax reached their highest levels in our history. Gross earnings grew year-on-year by 143.3 per cent to N2.08 trillion and our profit before tax increased by 277.2 per cent to N757.68 billion, asserting UBA’s position as a leading financial institution.”
Alawuba added that the phenomenal growth was principally fuelled by a significant increase in net interest income, due to a combination of a strong expansion in the loan portfolio, higher net interest margins, and a substantial contribution from foreign exchange operations.
He hinted that the bank’s FX operations benefited from increased business activity and improved profit margins.
On the increasing fraudulent practices in the banking sector, Alawuba cautioned customers against granting access to cards by family members and close relations.
He also said the bank has promoted about 4,000 staffers while efforts are ongoing to review staff salaries across the 20 countries it is currently operating.
Providing more insights, the board chairman of the bank, Tony Elumelu, said the group has successfully sustained its deposit mobilization efforts, growing total deposits by 93 per cent to N17.36 trillion from N8.99 trillion in the corresponding period of 2022.
The bank also expanded by 61 per cent to N5.55 trillion up from N3.44 trillion.
Elumelu added: “The bank maintained a well-structured and diversified balance sheet, with Total Assets and Shareholders’ Funds closing at N20.65 trillion and N2.03 trillion respectively.”
Elumelu paid glowing tributes to the staffers that made the growth possible, saying: “Behind each of these figures, is the everyday work of our dedicated staff, providing tangible solutions to real-world needs, delivering value to consumers, businesses, and governments.”
