How UBA recorded the highest profit in 75 years, breaks own record

The United Bank for Africa (UBA) has announced a 143% rise in its gross revenue to N2.08 trillion for the 2023 financial year.

The record bank’s highest ever, including a pretax profit of N607.69 billion.

UBA’s pretax profit rose 277.2% to N757.68 billion, showing its leading position in the financial services sector.

The bank’s chairman, Tony Elumelu, presented the report to the Board of Directors during its 62nd Annual General Meeting (AGM).

Elumelu revealed that UBA sustained deposit mobilization efforts, growing deposits by 93% to N17.36 trillion from N8.99 trillion, which it reported in 2022.

According to reports, UBA maintained a diversified balance sheet, with total assets and shareholders’ funds of N20.65 trillion and N2.03 trillion, respectively.

The bank’s financial records were affected by growth in net interest income, which resulted from several strong expansions in its loan portfolio, higher net interest margins, and a substantial contribution from forex operations.

UBA’s forex operations also benefited from increased business activity and improved profit margins.

In addition, its loan book grew by 61% to N5.55 trillion from N3.44 trillion, and the non-performing loan ratio reached 5.85%.

Elumelu said:

He said UBA aids consumers across Africa and globally, seeking secure and convenient payment methods.

Elumelu said the bank facilitates governments in distributing payments to persons during crucial periods of need.

UBA’s Group Managing Director and Chief Executive, Oliver Alawuba, stressed that cost discipline was sustained, with operating costs rising by 69% and in line with guidance.

Alawuba said:

UBA proposed an N2.80 kobo per share dividend to shareholders to be ratified shortly at the meeting.

UBA’s report comes amid another record-breaking record set by Guaranty Trust Bank (GTB), which recorded the highest profit in Nigeria’s banking history in 2023.

Guaranty Trust Holding Company Plc (GTCO), the parent company of Guaranty Trust Bank (GTBank), recorded a profit after tax of N509.3 billion in the first quarter of 2024.

The amount is a 587.4% or six times increase when compared to N74 08 billion reported in the same period of 2023.

The profit recorded by GTBank is also the largest ever pre-tax profits in Nigerian banking history.