Alawuba reels out UBA’s exponential growth in H1 2004, focuses on market leadership
The Group Managing Director/ Chief Executive Officer of the United Bank for Africa Group, Oliver Alawuba, said the dedication the bank workers, customers’ trust, support of regulators, and confidence of shareholders were responsible to the group’s giant stride and growth in the in First Half year performance in 2024.
The GND spoke at the H1 2024 Financial Year Investors’ Conference of the bank on Thursday.
He noted that while the economic environment remained challenging across the regions where the group operated, UBA group demonstrated resilience to achieve success.
He said, “High inflation, rising debt levels, increasing interest rates, and tighter monetary policies created significant pressure on economies globally. Despite these headwinds, our Bank has demonstrated resilience.”
Speaking on the banks resilience, Alawuba said In H1 2024, UBA Group delivered strong double-digit growth across high-quality and sustainable revenue streams.
He explained that the bank achieved a “robust Profit before Tax of N401.6 billion, reflecting our ability to manage risks effectively amidst macroeconomic volatility.”
He added, that customer deposits grew by 34%, from N17.4 trillion at year-end 2023 to N23.2 trillion in H1 2024.
The bank GMD also told investors that the Total Assets of the bank saw a 37% growth in total assets, reaching N28.3 trillion, up from N20.7 trillion at FYE 2023, adding that the growth was driven by “strong customer relationships and our ability to capitalize on opportunities across geographies.”
Alawuba said the Net Interest Income posted impressive growth, with net interest income expanding by 143% year-on-year to N675 billion.
He said, “Digital Banking & Payments income surged by 107.8% YoY to N106 billion, while funds transfer and remittance fees rose 188.7% and 228%, respectively
“Also, Income from trade transactions grew 83% to N18 billion as we strengthened our role in facilitating intra-regional and international trade.
“Our strategy of investing in technology, innovation, and data analytics continues to yield significant returns, positioning us as a leader in digital transformation.”
The GMD said UBA Group’s efforts and achievement had been recognized through multiple awards, including; Global Finance’s Best Bank in Frontier Markets, Best SME Bank in Africa, Best SME Bank in Mozambique, The African Banker’s Regional Bank of the Year for West Africa.
“These accolades reflect our commitment to excellence and delivering sustainable growth across our markets.
“We continue to invest in building a better bank through improvements in People, Processes, and Technology:
“We recognize that our people are our greatest asset. In 2024, we promoted over 2,000 employees and paid the 2023 bonus to eligible staff across Nigeria and UBA Africa (ex-Nigeria).
“Our smart automation initiatives are simplifying service delivery. For instance, our website now offers self-service options for BVN and NIN linkage, account updates, card blocking, and more. Additionally, a comprehensive review of our procurement processes has led to significant cost optimization.
“Our ongoing investments in technology are enabling us to deliver superior customer experiences, drive operational efficiency, and unlock new growth opportunities,” Alawuba added.
The bank said it partnered with others of same ambition, adding that such remained central to its growth strategy.
Alawuba continues, “In 2024, UBA was one of six banks to sign a Memorandum of Understanding with the Pan-African Payment Settlement System (PAPSS), enhancing cross-border trade and financial integration across Africa. We successfully deployed instant payment systems in five African countries, with more to follow.
“Our collaborations with Telco partners have also expanded, with funds under management now exceeding $1 billion. These partnerships enable us to deliver impactful solutions such as micro-lending and savings products, enhancing financial inclusion.”
He added that the bank took time to remain committed to “our Environmental, Social, and Governance (ESG)” responsibilities, adding, “We have pledged to plant One Million Trees over the next one year as part of our environmental stewardship.
“We continue to roll out our Braille account opening packages to more countries, promoting inclusivity for visually impaired customers.
“Our loans to young entrepreneurs, women-led businesses, and SMEs across Africa are part of our broader commitment to driving inclusive growth.”
On the bank’s Capitalization process. Alawuba said UBA had submitted application to SEC and expected approval in few weeks.
“We enter the second half of 2024 from a position of strength. Our proven resilience, strong capital position, and market-leading capabilities position us to continue our growth trajectory. EXECUTION will remain our driving force as we focus on market leadership and delivering excellent customer experiences at every touchpoint,” Alawuba added.