The United Bank for Africa (UBA) Plc, Africa’s Global Bank, announced its audited financial results for the full year ending December 31, 2022, yesterday. The results demonstrate excellent success across key indicators.
In spite of the extremely difficult global economic and business environment, UBA recorded a commendable profit before tax in 2022, with a growth of 31.2 percent, to close the year under review at N200.8 billion, up from the N153.01 billion recorded at the end of the previous fiscal year. The financials were filed by the bank on the floor of the Nigerian Exchange Limited (NGX).
Its profit after tax (PAT) increased from N118.7 billion the previous year to N170.2 billion in 2022, a 43.5% increase. As a result, UBA Group Shareholders’ Funds increased to N922.1 billion as of December 2022, recording a remarkable gain of 14.6% from the previous year.
The findings revealed a huge increase in the bank’s gross earnings, from N660.2 billion at the end of the 2021 fiscal year to N853.2 billion in the most recent reporting period. This represents a robust 29.2 percent gain.
From N8.5 trillion in 2021, total assets increased dramatically by 27.2%, surpassing the N10 trillion threshold, and closing at N10.9 trillion in December 2022.
This was a huge accomplishment and a turning point in the history of the formidable financial organization, according to a statement.
In the year under review, UBA Group’s cost-to-income ratio declined to 59.2 percent, from over 60 percent in the preceding year, hinting at the Group’s growing efficiency.
For the fiscal year that ended on December 31, 2022, the bank proposed a final dividend of 90 kobos for every share of common stock valued at 50 kobos. The Bank had already given an interim dividend of 20 kobos, based on its audited 2022 half-year results, thus the final dividend, which is subject to confirmation by the shareholders during its next Annual General Meeting (AGM), would bring the total payout for the year to N1.10 per share.
Noteworthy figures include the fact that UBA increased customer loans by 21.4% to N3.4 trillion in 2022 from N6.4 trillion, and that customer deposits increased by 22.9% to N7.8 trillion from N6.4 trillion during the same period in 2021. This was a result of better customer satisfaction, higher customer satisfaction, successes in the ongoing business transformation effort, and a stronger retail banking franchise.
Oliver Alawuba, Group Managing Director and CEO commented on the outcome by saying that UBA continues to perform significantly despite the difficult and constrained operating environment.
He said, “Despite severe challenges in the markets where we operate and an elevated global risk climate, the Group generated record headline earnings (+29.2%) and profitability (+31.2%).
“Higher returns for the stockholders were underpinned by our record earnings, expansion, and strong capital levels. The Group is on track to meet its strategic objectives, and we have faith in our ability to meet our aims.
“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, we have navigated unprecedented macroeconomic headwinds and made significant improvements in our diversification strategy and Customer 1st philosophy.
“The Group’s profit after tax climbed by 43.5% to N170.3 billion, driven by underlying growth in our core revenue streams and moderation in our cost of capital, which led to substantial growth of 14.6% in the Group’s Shareholders’ Funds and improved liquidity. To keep up with changing threats, we kept honing our risk management structure and procedures, Alawuba added.
According to Alawuba, when it comes to the outlook for 2023, “we are strategically positioned to increase our market share in our 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 work to continue having a good impact in the regions and economies where we operate while also providing our shareholders with increasingly attractive profits.
According to UBA’s Executive Director of Finance and Risk Management, Ugo Nwaghodoh, the bank is still in good shape and well-positioned to take on additional opportunities in Nigeria, Africa, and elsewhere.
The full-year performance of the UBA Group in 2022 was boosted by robust balance sheet expansion and an increase in the net interest margin. The Group’s Total Assets and Customer Deposits both increased by 27.2% and 22.9%, respectively, while the NIM increased to 5.61% from 5.57%.
The NPL ratio was moderated, dropping from 3.6% to 3.1 percent as a result of the Groups’ ongoing risk management approach.
The Group kept using lower-cost sources of funding, bringing its cost funds down to 2.1%.
“We are thrilled with the strategic success we have made in FY22, which was made possible by the confidence of our customers, the commitment of our staff, and the help of our larger partners and stakeholders. The bank is still committed to its business development efforts and responsible risk management procedures, and we are certain that we will continue to provide our stakeholders with the best value possible, he added.
A renowned Pan-African financial institution, United Bank for Africa Plc provides banking services to more than 25 million customers through more than 1,000 business locations and customer touch points in 20 African nations and on 4 continents.
Through retail, commercial, and corporate banking, cutting-edge cross-border payments and remittances, trade finance, and ancillary banking services, UBA connects people and businesses across Africa. The company is also present in the United States of America, the United Kingdom, France, and most recently the United Arab Emirates.