UBA Records 43.5% Rise in Profit, Loan Portfolio Spur to N605 Billion

…Shareholders Approve N1.10

United Bank for Africa (UBA) Plc has reported a 43.5% increase in profit after tax from N119 billion in 2021 to N170 billion in 2022.

The bank noted that in line with the bank’s overall objective of stimulating growth in the real sector, the bank grew its loan portfolio by N605 billion, or 21.4 % from the previous year.

Shareholders of United Bank for Africa (UBA) Plc have also approved the Board’s proposal to pay a dividend of N1.10 per share for the financial year ending December 31, 2022.

The shareholders gave their approval at the bank’s 61st Annual General Meeting (AGM) which was held virtually on Thursday, April 27th.

The bank had earlier paid an interim dividend of 20 kobo per share during the 2022 half-year, while a dividend of 90k was declared at the end of the 2022 financial year bringing the total to N1.10 per share.

In his address, UBA Group Chairman, Tony Elumelu, took time out to appreciate shareholders who have stood by the bank in the past years, as he noted that this continues to encourage the board to do more.

Elumelu said, “We appreciate all our regulators, customers and shareholders who have partnered with us in this exciting journey of growth, and 2023, we hope to do even better than we did in the year 2022. We have therefore prioritised our plans for the year which is very clear – it is all about execution, especially as this year marks a significant milestone for the group.”

At the end of the 2022 financial year, UBA delivered gross earnings of N853 billion, up 29.2 per cent on the prior year, and an operating income of N593 billion, representing an increase of 33.8 per cent from N443 billion in 2021. Profit Before Tax increased by 31.2 per cent to N201 billion from N153 billion recorded in 2021 while Profit After Tax rose by 43.5 per cent to close the year at N170 billion from N119 billion in 2021. In line with the bank’s overall objective of stimulating growth in the real sector, the bank grew its loan portfolio by N605 billion, or 21.4 per cent, from the prior year.

Commenting, UBA’s Group Managing Director/Chief Executive Officer, Oliver Alawuba, said the bank was positioned to take Africa to the world and bring the world to Africa through the capital, investment funds, trade flows and remittances flows.

Mr Alawuba said that UBA remains on the trajectory of achieving and even surpassing its targets for the 2023 financial year.

He added that the bank would continue to maintain a close focus on cost efficiency and strictly control operating expenses across the group, which included its new strategic investments.

“We are committed to delivering improved performances in the years ahead and also remain focused on simplifying trade and cross-border payment across the continent.

“With UBA as one of the leading banks championing the Pan-African Payment and Settlement System (PAPSS).

“An AfCFTA agenda and brainchild of Afreximbank which is currently operating in six pilot countries in West Africa – Nigeria, Ghana, Sierra Leone, Guinea Liberia and Gambia,” Mr Alawuba said.

Commenting, a shareholder of the bank, Faruk Umar, commended the management of UBA for the excellent results which culminated in a good dividend payout.

“I am very impressed by the growth in our bank’s earnings which is now very competitive and shows that our share price is currently grossly undervalued.

“We are happy that the bank’s presence is strengthened with its widespread into the African continent and sure that the dividend would increase next year,” he said.