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UBA reports staggering 438% surge in H1 2023 profit, driven by forex revaluation

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United Bank for Africa (UBA) has made significant financial strides in the first half of 2023, with a remarkable 438 percent increase in profit after tax, soaring to N378.24 billion compared to N70.34 billion in the same period last year.

The lender in a regulatory filing with the Nigerian Exchange Limited (NGX) disclosed details of its interim consolidated and separate financial statements for the period ending June 30, 2023, which revealed these stellar results.

Gross Revenue Skyrockets by 164%

UBA’s financial prowess was further demonstrated by an impressive 164 percent surge in gross revenue, totaling N981.78 billion as of June 2023, compared to N372.36 billion recorded in June 2022.

These robust financials have reaffirmed the bank’s position as a key player in the Nigerian and international financial markets.

Total Assets and Profit Before Tax Surge

The bank’s total assets witnessed a substantial increase, rising to N15.38 trillion, marking a substantial 41.68 percent jump from N10.86 trillion at the close of December 2022. UBA’s profit before tax also experienced remarkable growth, reaching N404 billion, a substantial 371 percent increase compared to N85.75 billion recorded in H1 2022.

This growth translates to an annualized return on average equity of 57.7 percent, a significant leap from the 17.1 percent reported a year earlier.

Impressive Customer Deposits and Shareholders’ Funds

In addition to these remarkable financial milestones, customer deposits surged by 42.4 percent to N11.14 trillion during the review period, a stark contrast to the N7.8 trillion recorded at the end of 2022.

Shareholders’ funds also witnessed a substantial increase, reaching N1.712 trillion, reflecting the bank’s robust internal capital generation capabilities.

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The board of directors has proposed an interim dividend of $50,000 per share, a substantial increase from the $20,000 declared in 2022.

Commitment to value delivery

In response to these outstanding results, UBA’s Group Managing Director and Chief Executive Officer, Oliver Alawuba, reiterated the bank’s commitment to consistently deliver value to its shareholders.

He highlighted the group’s progress in digital payments and retail penetration and emphasized the positive impact of revaluation gains stemming from the harmonization of foreign exchange rates in Nigeria.

Alawuba commented, “The Group recorded strong double-digit growth in revenues and profits from its operations; the result also reflects the effect of sizeable revaluation gains arising from the harmonisation of currency exchange rates in Nigeria.

He said, “The Group recorded strong double-digit growth in revenues and profits from its operations; the result also reflects the effect of sizeable revaluation gains arising from the harmonisation of currency exchange rates in Nigeria.

“Our reporting currency found a new exchange level at about N756 to $1 as of June 30, 2023, compared to N465 at the beginning of the year.

“The results again demonstrate the benefits of our long-held diversification strategy across Africa and globally. The growth of our international business, most recently in the UAE, only reinforces this earnings quality.”

UBA’s exceptional financial performance in H1 2023 signals a promising outlook for the bank and underscores its ability to navigate a dynamic and evolving financial landscape.

(Edited by Oludare Mayowa; omayowa@globalfinancialdigest.com; Newsroom: +234 8033 964 138)

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