By Mike Abbah
United Bank for Africa (UBA) Plc on Wednesday declared a 31 per cent increase in profit before tax to N204.27 billion in first quarter (Q1) ended March 2025 from N156.34 billion declared in the first quarter (Q1) ended March 31, 2024.
The Pan-African financial institution announced profit after tax grew by 33.1 per cent to N189.8 billion in Q1 2025, from N142.58 billion in Q1 2024, after a 4.8 per cent increase in income tax expense.
The group recorded a 36.1per cent growth in interest income to N599.83 billion, supported by the still elevated yields amid an increase in the group’s earning assets (+3.1per cent YTD to N26.26 trillion).
Analysing by contributory lines, UBA recorded higher income from investment securities (+45per percent to N291.86 billion), loans to customers (+17.4per cent to N229.35 billion), placement with banks (+17per percent to N47.42 billion), and loans to banks (+770.6 per cent to N31.20 billion).
UBA recorded a 77per percent growth in interest expense to N247.96 billion, as the high interest rates also resulted in higher funding costs.
Accordingly, the group’s net interest income grew by 17per cent to N351.88 billion, while net interest income ex-LLE settled 13.6per cent higher at N337.70 billion after accounting for the N14.18 billion in impairment charges.
Further down, operating expenses grew by 12.3per cent to N245.79 billion, triggered by increasing regulatory costs and persistent inflationary pressures.
The Group in audited financial results for the full year ended December 31, 2024, declared 6.1 per cent increase in profit before tax over N757.68 billion declared in 2023 financial year.
As a result of the impressive performance and in fulfilment of the promise made by the UBA Group Chairman, Tony Elumelu, to shareholders at the last Annual General Meeting, the Bank proposed a final dividend of N3.00 kobo for every ordinary share of 50 kobo, for the financial year ended December 31, 2024. This brings the total dividend in the year to N5.00.
The final dividend is subject to the ratification of the shareholders during its upcoming Annual General Meeting (AGM).
Like in the previous years, the banks’ total assets also increased significantly to N30.4 per cent, about 46.8 per cent increase from N20.65 trillion in 2023; signifying a milestone leap for the bank with the largest spread across the continent.
Consequently, UBA Group Shareholders’ Funds rose from N2.030 trillion as at December 2023 to close the 2024 financial year at N3.419 trillion, achieving an impressive growth of 68.39 percent.
UBA’s Group Managing Director/Chief Executive Officer, Oliver Alawuba, who expressed excitement at the results, stated that the 2024 financial performance demonstrates the bank’s continued focus on driving earnings growth, preserving asset quality, expanding business operations and deepening market share.
“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 highlighted.
According to him, “With total deposit increasing by 42.03 per cent from N17.4 trillion in 2023 to N24.7 trillion and total assets hitting N30.4 trillion from N20.7 trillion, the just released results reflect broad-based growth across all core businesses and were achieved despite prevailing macroeconomic challenges, geopolitical uncertainties, and exchange rate volatilities.”
The GMD expressed excitement at the marked improvement recorded in the bank’s core earnings profile, as he explained that the profit is derived from high-quality income streams from funding intermediation, fees and commissions, thus reflecting strong long-term, sustainable revenues generation capacity.
“Our ex-Nigeria (Rest of Africa & International) operations have expanded significantly over the past five years, now contributing 51.7per cent of Group revenue, up from 31per percent in 2019, delivering diversification benefits and further boosting long-term shareholder value. This will continue to grow, as we further explore strategic markets that align with our overall vision. We are currently upgrading our business scope and authorization in France, and considering other viable markets in the short to medium term,” Alawuba noted.
He pointed out the bank’s resolve to invest continuously in technology, data analytics, product innovation, staff training and development, which, according to him, will collectively enhance our customers’ experience.
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