UBA records its highest-ever profit of N766.5 billion in FY 2024

Post-tax profit for the group surged by 26.14% to N766.5 billion, up from N607.6 billion in 2023. This represents the highest annual profit ever recorded by the bank, solidifying its status as one of Nigeria’s most consistently performing financial institutions.

Over the last two years alone, UBA has reported a cumulative profit of N1.37 trillion, a sharp contrast to the N570.4 billion it posted in the five-year period leading up to 2023, according to Naijaonpoint estimates.

As part of its earnings announcement, the bank proposed a final dividend of N3.00 per share, bringing its total dividend payout from 2024 profits to over N170 billion.

UBA, one of Nigeria’s FUGAZ banks (FirstBank, UBA, GTBank, Access Bank, and Zenith Bank), also reported a significant increase in total assets, which grew to N30.3 trillion, representing an addition of N9.7 trillion from the N20.65 trillion reported in 2023.

The bank becomes the first among Nigeria’s Tier-1 lenders to release its 2024 full-year results, which had been highly anticipated by investors amid a volatile macroeconomic environment.

A breakdown of UBA’s numbers shows its earnings were driven primarily by interest income, as the bank benefitted from a high interest rate environment in 2024.

The elevated interest rate environment in Nigeria during the year led to strong demand for treasury instruments. While banks capitalized on the yield opportunity, borrowers became more cautious, leading to reduced demand for credit.

While 2023 saw the bank posting outsized profits from foreign exchange gains, this year’s performance was more subdued in that segment.

Net trading and forex gains dropped to N181.7 billion, a steep decline from N659.2 billion in the prior year, reflecting lower reliance on forex volatility for profitability.

UBA also proposed a dividend per share of N3 which when combined to its interi dividend of N2 takes its total dividend to N5 per share. This is also a record dividend for the bank, per Naijaonpoint research.

An interesting trend in UBA’s 2024 results is the growing contribution from its pan-African operations. According to the bank’s disclosures, about 51.7% of group revenue came from its Rest of Africa segment—businesses located outside Nigeria but within the African continent.

UBA’s total assets of N30.3 trillion place it among the top three largest financial institutions in the country, trailing only Access Holdings and Zenith Bank. First Bank Holding Company (FirstHoldCo) is yet to release its full-year 2024 results.

It is worth noting that under current regulations, banks are not permitted to count retained earnings or profits as part of share capital for recapitalization purposes.

Following the release of its earnings, UBA’s share price gained 4.48%, closing at N38.45 per share, as investors responded positively to the bank’s strong financial performance and dividend declaration.