UBA increases gain, records N201bn profit in 2022

The United Bank for Africa has recorded N201bn profit before tax in its 2022 financial period.

A statement on Thursday said the bank’s  audited financial results for the full year ended December 31, 2022, filed at the Nigerian Exchange Limited, showed that gross earnings rose significantly to N853.2bn from N660.2bn recorded at the end of the 2021 financial year, representing a 29.2 per cent growth. 

The bank’s assets also by 27.2 per cent, crossing the N10tn mark, to close at N10.9tn in December 2022. This is up from N8.5trn in 2021.

The statement added, “Despite the highly challenging global economic and business environment,  UBA recorded a laudable profit before tax, with a 31.2 per cent growth, to close the year under review at N200.8bn, rising from N153.01bn recorded at the end of the 2021 financial year.

“Profit after tax (PAT) grew by 43.5 per cent to N170.2bn in 2022, compared to N118.7bn recorded the year before.

“Consequently, UBA Group Shareholders’ Funds rose to N922.1bn as at December 2022, achieving an impressive growth by 14.6 per cent, compared to prior year.

“In the year under consideration, UBA Group cost-to-income ratio dropped to 59.2 pee cent, from over 60 per cent in prior year, pointing at the Group’s improving efficiency.”

The bank said in its usual tradition of rewarding shareholders, it proposed a final dividend of 90 kobo for every ordinary share of 50 kobo, for the financial year ended December 31, 2022.

“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.

“Also worthy of note, UBA recorded a 21.4 per cent growth in loans to customers, moving up to N3.4tn in 2022, while customer deposits improved by 22.9 per cent to N7.8trn, compared to N6.4trn recorded in the corresponding period of 2021, reflecting increased customer confidence, enhanced customer experience, successes from the ongoing business transformation programme and the deepening of its retail banking franchise,” the statement added.

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

He said, “The Group delivered record headline earnings (+29.2%) and profitability (+31.2%) 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 the shareholders.  The Group is on course to achieve its strategic goals, and we are confident we will deliver our targets.

“We have navigated unprecedented macroeconomic headwinds and made significant gains in our diversification strategy and Customer 1st 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 per cent to N170.3bn, with underlying growth in our key income lines and moderation in our cost of fund, resulting in robust growth of 14.6 pee cent in the Group’s Shareholders’ Funds and stronger liquidity. We continued to sharpen our risk management structure and practices to align with evolving risks.”

On the outlook for the year 2023, Alawuba said the bank is strategically positioned to increase its market share in its countries of presence, with expansion to Dubai, United Arab Emirates and strong growth of our digital banking and payment businesses, which is 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,” he added.

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 improvement in Net interest margin, as Group’s Total Assets and customer deposits grew 27.2 per cent and 22.9 per cent, respectively, while NIM grew to 5.61per cent from 5.57 per cent The continuous rejigging of the Groups’ risk management approach resulted in moderation of the NPL ratio, from 3.6 per cent to 3.1 per cent.  The Group continued to rely on lower cost funds, further reducing its cost funds to 2.1 per cent.”