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HomeTop NewsUBA grows loans portfolio by 21% to N3.4 trln, deposits base to...

UBA grows loans portfolio by 21% to N3.4 trln, deposits base to N7.8 trln in 2022

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… Declares 90 kobo Final Dividend
… Total assets Rise by 27.2 percent, Close at N10.9 trn

… Posts N201 bln profits

United Bank for Africa (UBA) Plc on Thursday said it grew its loans portfolio by 21.4 percent to N3.4 trillion at the end of the 2022 financial year and its deposit base by 22.9 percent in the same period.

In a statement, the lender disclosed that its customer deposits grew to N7.8 trillion by December 31, 2022, compared N6.4 trillion in the previous year.

Also worthy of note, UBA recorded a 21.4 percent growth in loans to customers, moving up to N3.4 trillion in 2022, whilst customer deposits improved by 22.9 percent to N7.8 trillion, compared to N6.4 trillion recorded in the corresponding period of 2021,

The bank said the increase in both loans portfolio and customer deposits reflected growing customer confidence, an enhanced customer experience, successes from the ongoing business transformation programme, and the deepening of its retail banking franchise.

Also, the bank in its audited financial results for the full year ended December 31, 2022, released to the Nigerian Exchange limited (NGX) on Thursday, showed that UBA posted impressive performance with profit rising to N201 billion and declaring a N0.90 dividend per share.

In a regulatory filing with the Nigerian Exchange Limited (NGX), the lender’s financial results showed that gross earnings rose significantly to N853.2 billion from N660.2 billion posted at the end of the 2021 financial year, representing a strong 29.2 percent growth.

Total assets rose remarkably by 27.2 percent, crossing the N10 trillion mark to close at N10.9 trillion in December 2022, up from N8.5 trillion in 2021. This is a very significant achievement and milestone in the history of the financial institution.

Despite the highly challenging global economic and business environment, UBA recorded a laudable profit before tax, with a 31.2 percent growth, to close the year under review at N200.8 billion, rising from N153.01 billion recorded at the end of the 2021 financial year, while profit after tax (PAT) grew by 43.5 percent to N170.2 billion in 2022, compared to N118.7 billion recorded the year before.

Consequently, UBA Group Shareholders’ Funds rose to N922.1 billion as of December 2022, achieving impressive growth of 14.6 percent compared to the prior year.

In the year under consideration, the UBA Group’s cost-to-income ratio dropped to 59.2 percent from over 60 percent in the prior year, pointing to the group’s improving efficiency.

In its usual tradition of rewarding shareholders, the Bank proposed a final dividend of 90 kobo for every ordinary share of 50 kobo for the financial year ended December 31, 2022.

READ ALSO: A total of N318.52 bln securities, including shares, bonds listed on NGX in Q1.

The final dividend, which is subject to the ratification of the shareholders during its upcoming Annual General Meeting (AGM), will bring the total dividend for the year to N1.10 per share, as the bank had paid an interim dividend of 20 kobo based on its audited 2022 half-year results.

Commenting on the result, the Group Managing Director and CEO, Oliver Alawuba, said notwithstanding the tight and challenging operating environment, UBA continues to deliver significant performance.

“The Group delivered record headline earnings (+29.2 percent) and profitability (+31.2 percent) amid significant headwinds in markets where we are present and a heightened global risk environment. Our record earnings, growth, and robust capital levels supported higher returns for shareholders.

“The group is on course to achieve its strategic goals, and we are confident we will deliver on our targets.

“We have navigated unprecedented macroeconomic headwinds and made significant gains in our diversification strategy and customer-first philosophy as we build resilience in our operations across Africa and the rest of the world to support the mission of providing superior value to our stakeholders.

“The group’s profit after tax increased by 43.5 percent to N170.3 billion, with underlying growth in our key income lines and moderation in our cost of funds, resulting in robust growth of 14.6 percent in the group’s shareholder funds and stronger liquidity. We continued to sharpen our risk management structure and practices to align with evolving risks”, Alawuba said.

On the outlook for the year 2023, Alawuba said, “We are strategically positioned to increase our market share in our countries of presence, with expansion to Dubai, the United Arab Emirates, and strong growth of our digital banking and payment businesses, which are pivotal to the evolving cashless economy in Nigeria. We strive to deliver increasingly attractive returns to our shareholders and continued positive impact in the geographies and economies in which we operate.”

UBA’s Executive Director, Finance and Risk Management, Ugo Nwaghodoh, said going by this recent performance, UBA remains on strong footing and is comfortably positioned to take on more opportunities in Nigeria, Africa, and beyond.

“UBA Group’s 2022FY performance was buoyed by strong balance sheet growth and an improvement in net interest margin, as the Group’s total assets and customer deposits grew 27.2 percent and 22.9 percent, respectively, whilst NIM grew to 5.61 percent from 5.57 percent.

“The continuous rejigging of the groups’ risk management approach resulted in a moderation of the NPL ratio, from 3.6 percent to 3.1 percent. The group continued to rely on lower-cost funds, further reducing its cost funds to 2.1 percent.

“We are delighted with the strategic progress we have made in FY22, riding on our customers’ trust, the dedication of our people, and the support of our wider partners and stakeholders. The bank remains committed to its business development drive and prudent risk management practices, and we are optimistic about delivering the best value for our stakeholders in the days ahead,” he noted.

(omayowa@globalfinancialdigest.com; Newsroom: +234 8033 964 138)

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