Tony Elumelu’s UBA reports record-breaking revenue and highest profit in history

The United Bank for Africa (UBA) has announced a 143% rise in its gross revenue to N2.08 trillion for the 2023 financial year.

The record bank’s highest ever, including a pretax profit of N607.69 billion.

UBA’s pretax profit rose 277.2% to N757.68 billion, showing its leading position in the financial services sector.

The bank’s chairman, Tony Elumelu, presented the report to the Board of Directors during its 62nd Annual General Meeting (AGM).

Elumelu revealed that UBA sustained deposit mobilization efforts, growing deposits by 93% to N17.36 trillion from N8.99 trillion, which it reported in 2022.

According to reports, UBA maintained a diversified balance sheet, with total assets and shareholders’ funds of N20.65 trillion and N2.03 trillion, respectively.

The bank’s financial records were affected by growth in net interest income, which resulted from several strong expansions in its loan portfolio, higher net interest margins, and a substantial contribution from forex operations.

UBA’s forex operations also benefited from increased business activity and improved profit margins.

In addition, its loan book grew by 61% to N5.55 trillion from N3.44 trillion, and the non-performing loan ratio reached 5.85%.

Elumelu said: “Behind each of these figures, is the everyday work of our dedicated staff, providing tangible solutions to real-world needs, delivering value to consumers, businesses, and governments.”

He said UBA aids consumers across Africa and globally, seeking secure and convenient payment methods.

Elumelu said the bank facilitates governments in distributing payments to persons during crucial periods of need.

UBA’s Group Managing Director and Chief Executive, Oliver Alawuba, stressed that cost discipline was sustained, with operating costs rising by 69% and in line with guidance.

Alawuba said: “This outcome indicates steady business-as-usual expenses, the impact of inflationary trends, deliberate increments related to planned strategic investments, and the establishment of new business ventures.”

UBA proposed an N2.80 kobo per share dividend to shareholders to be ratified shortly at the meeting.