Our global investments driving consistent earnings growth

Group Managing Director/Chief Executive Officer of United Bank for Africa (UBA) Oliver Alawuba, has expressed confidence in the bank’s ability to sustain growth through strategic expansion, improved asset quality, and increased market share.

He disclosed this on Monday while commenting on the strong financial results posted by the Bank in 2024.

The 2024 audited financial results, filed with the Nigerian Exchange Limited (NGX) on Monday, reveal that UBA’s profit after tax surged by 26.14 per cent to close the year at N766.6 billion, up from N607.7 billion in 2023.

The bank’s gross earnings also recorded an outstanding 53.6 per cent growth, rising from N2.08 trillion in 2023 to N3.19 trillion in 2024.

Despite prevailing global economic uncertainties and financial headwinds, UBA continued its upward trajectory, posting a profit before tax of N803.72 billion, a 6.1 per cent increase from N757.68 billion in the previous year.

The bank also witnessed a remarkable 46.8 per cent growth in total assets, which expanded from N20.65 trillion in 2023 to N30.4 trillion in December 2024.

This milestone further cements UBA’s status as one of the leading financial institutions with the widest footprint across Africa.

In addition, UBA’s Shareholders’ Funds experienced substantial growth, soaring by 68.39 per cent from N2.03 trillion in December 2023 to N3.419 trillion in 2024.

“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 stated.

The bank recorded a 42.03 per cent increase in total deposits, from N17.4 trillion in 2023 to N24.7 trillion in 2024, reflecting strong customer confidence and business growth.

Alawuba also highlighted UBA’s global expansion strategy, revealing that the bank’s operations outside Nigeria, particularly in the Rest of Africa and international markets, now contribute 51.7 per cent of total Group revenue, up from 31 per cent in 2019.

“We are currently upgrading our business scope and authorization in France and considering other viable markets in the short to medium term,” he added.

UBA remains dedicated to digital transformation, financial inclusion, and technology-driven services, Alawuba stated. The bank is continuously investing in data analytics, product innovation, and staff training to enhance customer experience and expand its reach.

UBA’s Executive Director of Finance & Risk Management, Ugo Nwaghodoh, provided further insights into the bank’s performance, noting a triple-digit growth in net interest income, which led to an improvement in net interest margin from 6.83 per cent in 2023 to 9.02 per cent in 2024.

“UBA Group continues to demonstrate strong capital levels, with shareholders’ funds rising by 68.4 per cent to N3.42 trillion and a solid capital adequacy ratio of 31.0 per cent.

“As we defensibly position the portfolio to navigate prevailing global and regional macroeconomic upheavals, our asset quality has improved, with the Non-Performing Loan (NPL) ratio moderating to 5.58 per cent and strong provision coverage at 81 per cent,” Nwaghodoh noted.