UBA Offers Shareholders N3 Dividend as PBT Grows N803.7bn in FY2024

The cash reward if for the 2024 financial year, the company revealed in its audited financial statements for the period under review.

In the results filed to the Nigerian Exchange (NGX) Limited on Monday, the proposed final dividend and the N2.00 per share interim dividend paid in October 2024 brings the total dividend for the year to N5.00, amounting to a payout ratio of 26.6 per cent versus the 16.32 per cent recorded in the previous financial year and a yield of 13.1 per cent versus 10.92 per cent in 2023.

The proposed dividend was a result of the impressive performance and in fulfillment of the promise made by the UBA Group Chairman, Mr Tony Elumelu, to shareholders at the last AGM.

The lender recorded a profit before tax of N803.72 billion, 6.1 per cent higher than the N757.68 billion recorded in the 2023 financial year and the profit after tax went up by 26.14 per cent to N766.6 billion from N607.7 billion.

The bank’s gross earnings also grew significantly, 53.6 per cent, from N2.08 trillion to N3.19 trillion, while the total assets rose remarkably by 46.8 per cent from N20.65 trillion to N30.4 trillion.

The chief executive of UBA, Mr Oliver Alawuba, stated that the 2024 financial performance demonstrates the bank’s continued focus on driving earnings growth, preserving asset quality, expanding business operations and deepening market share.

“Our continued investment in our highly diversified global network allows UBA to deliver high-quality, consistent earnings. Our businesses have been able to grow product and service income and expand our deposit base, allowing the Group to increase earnings while maintaining strong spreads and margins,” Mr Alawuba highlighted.

According to him, “With total deposit increasing by 42.03 per cent from N17.4 trillion in 2023 to N24.7 trillion and total assets hitting N30.4 trillion from N20.7 trillion, the just-released results reflect broad-based growth across all core businesses and were achieved despite prevailing macroeconomic challenges, geopolitical uncertainties, and exchange rate volatilities.”

He expressed excitement at the marked improvement recorded in the bank’s core earnings profile, as he explained that the profit is derived from high-quality income streams from funding intermediation, fees and commissions, thus reflecting strong long-term, sustainable revenue generation capacity.

“Our ex-Nigeria (Rest of Africa & International) operations have expanded significantly over the past five years, now contributing 51.7% of Group revenue, up from 31% in 2019, delivering diversification benefits and further boosting long-term shareholder value.

“This will continue to grow, as we further explore strategic markets that align with our overall vision. We are currently upgrading our business scope and authorization in France, and considering other viable markets in the short to medium term,” Mr Alawuba noted.

He pointed out the bank’s resolve to invest continuously in technology, data analytics, product innovation, staff training and development, which, according to him, will collectively enhance our customers’ experience.

On his part, UBA’s Executive Director of Finance and Risk Management, Mr Ugo Nwaghodoh, said the bank recorded triple-digit growth in net interest income, resulting in a remarkable improvement in net interest margin from 6.83 per cent in 2023 to 9.02 per cent, while also recording strong double-digit growth in fee and commission income lines of 91.66 per cent.

“UBA Group continues to demonstrate strong capital levels, with shareholders’ funds growth of 68.4% to N3.42 trillion and a solid capital adequacy ratio of 31.0%., and as we defensibly position the portfolio to navigate prevailing global and regional macroeconomic upheavals, asset quality improved, with NPL ratio moderating to 5.58%, with strong provision coverage at 81%”, Mr Nwaghodoh noted.