United Bank for Africa Posts Highest-Ever N767 Billion Annual Profit
United Bank for Africa (UBA) has reported its highest net profit ever, driven by a surge in interest income. The bank’s audited financial report for 2024 shows that after-tax profit rose by 26.1% to N766.6 billion, up from N607.7 billion in the previous year.
Strong Market Reaction and Dividend Payout
Following the announcement, UBA’s stock price climbed 5% as of 12:47 WAT in Lagos. Investors were excited by the bank’s decision to pay a final dividend of N3 per share, bringing the total annual dividend to N5 per share. This results in a record payout of N171 billion to shareholders.
Higher Interest Income Boosts Profits
Like other Nigerian banks, UBA benefited from the Central Bank of Nigeria’s aggressive interest rate hikes. The central bank raised the benchmark lending rate by 875 basis points last year, allowing lenders to charge more on loans. As a result, UBA’s net interest income more than doubled, increasing by 116.4% to N1.5 trillion.
Managing Risks and Rising Expenses
To safeguard against potential loan defaults, UBA allocated N217 billion—50.6% more than in 2023—for credit losses. The country’s economic challenges have put pressure on borrowers, increasing the risk of missed payments.
UBA also saw significant growth in fee and commission income, which jumped 91.7%. This was largely due to a surge in e-banking transactions, including payments made through ATMs, POS terminals, mobile banking, and card transactions.
On the other hand, net trading and foreign exchange gains fell by 72.4% to N181.1 billion, impacted by a net fair value loss of N342.2 billion on derivatives. Additionally, employee benefits rose by 72.1%, while operating expenses increased from N372.8 billion to N682.9 billion.
Expanding Global Presence
UBA operates in 20 African countries, along with the UK, USA, and UAE. It also has a representative office in France and serves over 45 million customers. Pre-tax profit for 2024 grew to N803.7 billion, up from N757.7 billion in the previous year.
The bank also reported N590 billion in exchange differences from foreign operations, up from N435.9 billion. This contributed to its total comprehensive income reaching N1.5 trillion.
Record Growth in Assets
UBA’s total assets surged to N30.3 trillion, compared to N20.7 trillion a year earlier. This impressive growth highlights the bank’s strong financial position and ability to navigate Nigeria’s challenging economic environment.
With these record-breaking results, UBA continues to cement its position as a leading financial institution in Africa, delivering strong returns for investors while expanding its reach and services.
