UBA Group Posts Impressive H1 2024 Report, Demonstrates Resilience Amidst Challenging Economic Environment

UBA Group Posts Impressive H1 2024 Results, Demonstrates Resilience Amidst Challenging Economic Environment 

United Bank for Africa (UBA) Group has released its audited financial results for the first half of 2024, showcasing strong double-digit growth across key performance indicators.

Despite the challenging economic environment, the bank’s Profit Before Tax (PBT) stood at N401.6 billion, demonstrating its ability to effectively manage risks.

UBA Group’s financial highlights include a 34% growth in customer deposits to N23.2 trillion, a 37% growth in total assets to N28.3 trillion, and a 143% year-on-year growth in net interest income to N675 billion.

Digital banking and payments income surged by 107.8% year-on-year to N106 billion, while trade facilitation income grew by 83% to N18 billion.

Managing Director/CEO of UBA, Oliver Olawiba, said the bank’s success can be attributed to its disciplined execution of strategic goals, focusing on balance sheet expansion, transaction banking, and digital banking businesses across its markets.

UBA’s commitment to innovation, technology, and data analytics has yielded significant returns, positioning it as a leader in digital transformation.

UBA Group has received multiple awards, including Global Finance’s Best Bank in Frontier Markets, Best SME Bank in Africa, Best SME Bank in Mozambique, and The African Banker’s Regional Bank of the Year for West Africa.

To build a better bank, UBA continues to invest in people, processes, and technology. The bank has promoted over 2,000 employees and paid 2023 bonuses, simplified service delivery through smart automation, and comprehensively reviewed procurement processes for cost optimization.

Strategic partnerships remain central to UBA’s growth strategy.

Recent collaborations include partnering with the Pan-African Payment Settlement System (PAPSS) for enhanced cross-border trade, expanding instant payment systems across African countries, and collaborating with Telco partners for micro-lending and savings products.

UBA remains committed to its Environmental, Social, and Governance (ESG) responsibilities, focusing on inclusivity and environmental sustainability.

Initiatives include planting one million trees over the next year, providing Braille account opening packages for visually impaired customers, and offering loans to young entrepreneurs, women-led businesses, and SMEs.

The bank is at an advanced stage with its recapitalization process, expecting approval from the Securities and Exchange Commission (SEC) in the coming weeks.

UBA enters the second half of 2024 from a position of strength, with a proven resilience and market-leading capabilities.

For FY 2024, UBA projects deposit growth of 45%, loan growth of 40%, a cost of risk of 2.8%, and a non-performing loan ratio of 6.5%.

The bank also expects a return on average equity of 28%, return on average assets of 2.8%, capital adequacy ratio of 28%, cost-to-income ratio (ex-impairment) of 50%, and net interest margin of 8.5%.

UBA Group’s impressive H1 2024 results demonstrate its ability to navigate challenging economic environments while delivering sustainable growth and excellent customer experiences.