Africa’s Global Bank, United Bank for Africa (UBA) Plc, has released its audited financial results for the full year ended December 31, 2023, showing exceptional and impressive performance across all its major indicators.

The 2023 financials, filed by the Bank at Nigerian Exchange Limited (NGx) on Monday, showed an impressive leap in gross earnings, as it grew from $1.9 billion recorded at the end of 2022 to close at $2.9 billion; representing a strong 143 per cent growth.

The banks’ total assets also rose remarkably by 90.22 per cent, doubling the $11 billion mark, to close at $21.7 billion in December 2023; up from $11.5 billion in 2022.

This leap remains a very significant achievement and milestone in the history of the financial powerhouse.

Despite the highly challenging global economic and business environment, UBA recorded a laudable profit before tax, with an exponential growth of 277 per cent, to close the year under review at $1.06 billion, rising from $446 million recorded at the end of the 2022 financial year; while profit after tax (PAT) grew by 257 per cent from $378 million in 2022 to $849 million in the year under consideration.

Consequently, UBA Group Shareholders’ Funds rose from $969 million as of December 2022 to close the 2023 financial year at $2.1bn, achieving an impressive growth of 120.2%, compared to the prior year.

 In the year under consideration, UBA Group's cost-to-income ratio dropped from 59.2%, in 2022, to 37.2 per cent pointing to the Group’s improving efficiency.

In fulfilment of the promise made by the UBA Group Chairman, Tony Elumelu, to shareholders at the last Annual General Meeting, the Bank proposed a final dividend of 0.24 cents for every ordinary share of 0.05 cents, for the financial year ended December 31, 2023.

The final dividend is subject to the ratification of the shareholders during its upcoming annual general meeting (AGM).

Also worthy of note, UBA recorded a 61.3 per cent growth in loans to customers, moving up to $5.8 billion in 2023, whilst customer deposits improved by 90.31 per cent to $15.7 billion, compared to $8.2 billion recorded in the corresponding period of 2022, reflecting increased customer confidence, enhanced customer experience, successes from the ongoing business transformation programme and the deepening of its retail banking franchise.

 Commenting on the results, UBA’s Group Managing Director/Chief Executive Officer, Oliver Alawuba, said: “I am very pleased with the unprecedented results achieved by our Group in FY2023.

The Group made a profit before tax of $1.06 billion, from $446 million in the prior year. The balance sheet also grew to $21.7 billion from $11.5 billion in the previous year.

 He said, “The Group’s shareholder’s funds crossed $2.1 billion from $969m in 2022, whilst total assets crossed the $21 billion mark (90.2% YoY growth). The Group is well positioned for further business expansion in FY2024 having closed FY2023 with a Capital Adequacy Ratio of 32.6%.”

He added that the bank’s diversified business model (Pan-African and International strategy) is justified by the contribution of its Ex-Nigeria business to the Group’s results and reinforces its resolve to expand our market share of customers, funding, digital and transaction banking businesses across Africa.

 “Driven by our customer service and execution-led delivery model, we will continue to expand our market share, create value for our shareholders and meet the expectations of our various stakeholders,” the GMD stated.

 UBA’s Executive Director of Finance & Risk Management, Ugo Nwaghodoh, said the 2023 full year was a particularly eventful year, with galloping inflation and currency depreciation ravaging key markets, amidst pockets of regional conflicts and security challenges.

 “I am delighted however at the strong growth in earnings and profitability recorded in the year. The Group conservatively set up significant impairment reserves against its overall risk assets portfolio considering the latent impact of the macroeconomic headwinds on our credit portfolio.

"Consequently, Cost of Risk grew to 3.09% from 0.63% in the prior year,” Nwaghodoh noted.

 On the expectation for the 2024 financial year, he said, “The Group remains fervently committed to sustainable growth and maintaining its strong compliance and risk management practices culture even as we drive our business through the next phase of growth."