UBA Plc Achieves Record-Breaking ‘Best Ever’ Financial Performance In 2023

United Bank for Africa (UBA) Plc, Africa’s premier financial institution, has set a new benchmark in its financial performance for the year ending December 31, 2023. The audited financial results unveiled by UBA at the Nigerian Exchange Limited (NGX) showcase exceptional growth across all key metrics, solidifying its position as a leading player in the financial sector.

The 2023 financial report reveals a remarkable surge in gross earnings, skyrocketing from N853.2 billion in 2022 to an impressive N2.08 trillion, representing an extraordinary 143 percent increase. Additionally, the bank’s total assets witnessed a significant rise of 90.22 percent, surpassing the N10 trillion mark to reach N20.65 trillion by the end of 2023, a substantial leap from N10.86 trillion in the previous year.

Despite the challenging global economic environment, UBA achieved a commendable profit before tax, soaring by 277 percent to N758 billion in 2023 from N201 billion in 2022. Similarly, the profit after tax (PAT) surged by 257 percent from N170 billion to N608 billion during the same period.

Furthermore, UBA Group’s Shareholders’ Funds grew from N922 billion in December 2022 to close the 2023 financial year at N2.0 trillion, marking an impressive growth of 120.2% compared to the preceding year.

The bank’s cost-to-income ratio also improved significantly, dropping from 59.2% in 2022 to 37.2% in 2023, underscoring enhanced operational efficiency within the Group.

In line with the commitment made by UBA Group Chairman, Tony Elumelu, the Bank proposed a final dividend of N2.30 kobo per ordinary share of 50 kobo for the financial year ended December 31, 2023, subject to shareholders’ approval at the upcoming annual general meeting (AGM).

UBA’s achievements include a 61.3 percent increase in loans to customers, reaching N5.5 trillion in 2023, and a 90.31 percent growth in customer deposits to N14.9 trillion compared to N7.8 trillion in 2022, reflecting heightened customer confidence and successful business transformation initiatives.

UBA’s Group Managing Director/Chief Executive Officer, Oliver Alawuba, expressed satisfaction with the outstanding performance in FY2023, highlighting a substantial profit before tax of N758 billion and a robust balance sheet growth to N20.7 trillion. Alawuba emphasized the Group’s readiness for further expansion in FY2024, boasting a Capital Adequacy Ratio of 32.6% and reaffirming its commitment to market share growth and value creation across Africa.

Acknowledging the challenging macroeconomic environment in 2023, UBA’s Executive Director of Finance & Risk Management, Ugo Nwaghodoh, commended the bank’s strong earnings and profitability growth amidst inflation and currency fluctuations. The Group’s cautious risk management approach, including setting up impairment reserves to mitigate potential losses, has resulted in an increase in the Cost of Risk to 3.09% compared to the previous year.

Looking ahead to the 2024 financial year, UBA remains focused on sustainable growth while upholding strong compliance and risk management practices. Despite the prevailing challenges, the bank is committed to driving its business forward through the next phase of growth.

As UBA continues its strategic journey towards sustainable growth and customer-centric innovation, it remains dedicated to delivering exceptional value to its stakeholders and solidifying its position as a leading financial powerhouse in Africa and beyond.

UBA, a prominent Pan-African financial institution with a wide reach, serves millions of customers across multiple countries, offering a comprehensive range of banking services. With a presence in key global financial centers, UBA plays a pivotal role in connecting people and businesses across Africa.