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UBA soars to the Pinnacle: Nigeria’s most profitable bank sets new standards in H1 ’23

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By Temi Olowu


In the ever-evolving landscape of Nigerian banking, one institution has risen above the rest, and its name resounds with authority: the United Bank for Africa (UBA).

As the dust settles on the first half of 2023, UBA stands tall, setting new benchmarks for profitability, resilience, and global reach within the Nigerian banking space.

Record-Breaking Profitability

UBA’s financial performance in H1 2023 has sent ripples through the industry, firmly establishing the bank as the most profitable in Nigeria. The numbers speak volumes: a staggering profit-before-tax of N404 billion, representing an awe-inspiring 371 percent increase in six months to June 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.

A Beacon of Returns

A bank’s ability to generate returns is a testament to its financial prowess. UBA has not only excelled in this arena but has set a new standard with an annualized return on average equity (ROAE) of 57.7 percent. This remarkable achievement underscores UBA’s commitment to delivering value to its shareholders.

A rock-solid foundation

In the world of banking, a strong foundation is paramount, and UBA’s Shareholders’ Funds of N1.712 trillion attest to the group’s robust internal capital generation capabilities. This financial bedrock ensures that UBA is not just a leader today but will probably remain one for years to come.

Deposits Surge

Customer confidence is pivotal in banking, and UBA has garnered it in abundance. Customer deposits have surged to N11.14 trillion, reflecting an impressive growth rate of 42.4 percent. This not only reflects the trust customers place in UBA but also highlights the bank’s efficient customer-centric operations.

A Titanic of Assets

Total assets are the lifeblood of a bank, and UBA boasts an impressive N15.38 trillion in assets. This financial muscle cements UBA’s position as a financial juggernaut, capable of taking on any challenge.

Dividends that Delight

For shareholders, UBA’s performance translates into tangible rewards. The bank has declared an interim dividend of 50 kobo per share, a substantial increase from the 20 kobo offered the previous year. This represents an annualized interim dividend yield of 7.2 percent, demonstrating UBA’s commitment to sharing its success with its investors.

A Global Footprint

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UBA’s influence extends far beyond Nigerian shores, as evidenced by the strong contributions to group profit from its operations in 20 African countries: UBA America, UBA UK, UBA UAE, and UBA France.

This global presence underscores the effectiveness of UBA’s overarching strategy and its pivotal role as the financial intermediary for Africa and the rest of the world.

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.

“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 harmonization of currency exchange rates in Nigeria.

“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 harmonization 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,” Alawuba said.

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.

As the banking world looks on in admiration, UBA’s meteoric rise in H1 2023 serves as a testament to the bank’s unwavering commitment to excellence, innovation, and global expansion.

In a sector where competition is fierce, UBA has not only thrived but also set new standards that will undoubtedly shape the future of Nigerian banking. Underpinning this monumental success is the Tony Elumelu strategy, which continues to drive UBA to new heights and solidify its position as Nigeria’s most profitable bank.

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

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