UBA’s Stellar Half-Year Performance: Setting the Gold Standard in African Banking – United Bank for Africa (UBA) Plc has outdone itself, demonstrating a formidable financial performance in the first half of 2023. These results solidify UBA’s position as one of Africa’s premier financial institutions, making it a prime choice for potential investors.
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A Look at the Numbers
UBA’s H1 2023 results have been nothing short of impressive. Profit before tax soared to N403.65 billion, a staggering 370.7% increase from H1 2022’s N85.75 billion. Furthermore, their post-tax profits skyrocketed by 437.8% year-on-year, reaching N378.24 billion.
In a notable achievement, UBA surpassed industry giants Guaranty Trust Holding Company Plc (GTCO) and Zenith Bank Plc in pre-tax profits, a testament to their exceptional performance.
Historical data further showcases UBA’s consistent growth. Their profit before tax has seen a steady rise, from N111.3 billion in 2019 to N200.88 billion in 2022.
For shareholders, the cherry on top has been the proposed interim dividend of N0.50 per share, a significant leap from the N0.20 per share of the previous year.
Breaking Down the Revenue Streams
UBA’s outstanding results can be attributed to various factors. The bank reported a net trading and foreign exchange gain of N418.28 billion in H1 2023, a substantial increase from the previous year’s N9.15 billion.
Furthermore, gross earnings for H1 2023 stood at N981 billion, marking a 164% increase from H1 2022’s N372 billion. Interest income also witnessed growth, fueled by a surge in the fixed income market and a rise in key earning assets.
On the expenses side, UBA saw a rise in operating expenses, primarily due to increased personnel costs and other levies. However, the bank’s operational efficiency improved, with a cost-to-income ratio of 35.9% in H1 2023, down from 65.4% in the previous year.
Asset and Deposit Growth
UBA’s total assets as of June 30, 2023, stood at a colossal N15.38 trillion, a 41.7% increase from the previous year. This growth was primarily driven by a rise in customer deposits, which increased by 42.4% year-on-year to reach N11.14 trillion.
The bank’s loan book also expanded, with net loans amounting to N4.68 trillion as of June 30, 2023, a 36.1% increase from 2022. Shareholders’ funds also experienced substantial growth, reaching N1.7 trillion by the end of H1 2023.
Words from the Helm
Mr. Oliver Alawuba, the Group Managing Director/CEO of UBA, expressed his satisfaction with the results. He highlighted the bank’s diversification strategy across Africa and globally, emphasizing UBA’s role as a leading Pan-African business.
Alawuba noted the growth of UBA’s international business, particularly in the UAE, and praised the bank’s diversification strategy. He also mentioned the bank’s commitment to financing landmark projects across Africa and facilitating intra-Africa trade.
He concluded by expressing confidence in UBA’s continued growth trajectory, emphasizing the bank’s commitment to delivering premium services to its customers and providing superior returns to shareholders.
UBA’s H1 2023 performance is a testament to its robust financial health, strategic positioning, and commitment to excellence. As one of Africa’s leading financial institutions, UBA continues to set the pace, promising even brighter days ahead for its stakeholders.
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