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UBA Surpasses Hurdles to Deliver N401.6 Billion Profit Amid Challenging Global Landscape

Strong leadership, strategic execution, and digital innovation drive UBA’s impressive financial performance, including 34% growth in customer deposits and a 143% surge in net interest income amidst volatile market conditions.

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By Kirk Leigh

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United Bank for Africa (UBA) has defied global economic headwinds to post a remarkable Profit Before Tax (PBT) of N401.6 billion for the first half (H1) of 2024. This achievement was unveiled during the bank’s Investors Conference, where Group Managing Director/CEO Oliver Alawuba detailed the financial results and strategic moves that cemented UBA’s resilience and growth.

Despite operating in an environment characterized by high inflation, rising interest rates, and global geopolitical uncertainties, UBA’s solid leadership, combined with a commitment to excellence and execution, enabled the bank to navigate these challenges successfully. Alawuba highlighted the bank’s ability to stay focused on its core principles, encapsulated in the “EXECUTION” mantra, which helped position UBA as a leader in several markets.

“We have demonstrated resilience, driven by our Customer-First (C1st) philosophy, delivering value to our customers while navigating a turbulent global economic environment,” said Alawuba.

UBA Corporate Headquarters in Marina, Lagos

Key Financial Achievements

In a period when many financial institutions were grappling with market volatility, UBA achieved several key milestones, with notable double-digit growth across its revenue streams:

Customer Deposits surged by 34%, growing from N17.4 trillion at the end of 2023 to N23.2 trillion by mid-2024. This reflects the continued confidence and loyalty of UBA’s customer base.

Total Assets saw an impressive 37% growth, rising to N28.3 trillion from N20.7 trillion at the end of 2023, demonstrating UBA’s ability to capitalize on cross-geographical opportunities and strong customer relationships.

Net Interest Income expanded by a remarkable 143% year-on-year to N675 billion, a testament to the strength of the bank’s core operations.

Digital Banking Income surged by 107.8% year-on-year to N106 billion, underscoring UBA’s leadership in the digital banking space. This growth was mirrored by significant rises in remittance and trade facilitation income, as the bank strengthened its role in regional and international trade.

Awards and Recognition

UBA’s outstanding performance did not go unnoticed, with the bank receiving numerous accolades, including Global Finance’s Best Bank in Frontier Markets and Best SME Bank in Africa. The recognition extends beyond profitability, highlighting the bank’s commitment to small and medium enterprises (SMEs) and sustainable growth across the continent.

Building a Better Bank

Alawuba emphasized that UBA’s ongoing success is rooted in its investments in people, processes, and technology. In 2024 alone, the bank promoted over 2,000 employees and optimized its operations through smart automation and digital service innovations, such as self-service options for customers.

Technology remains at the forefront of UBA’s strategy, with significant investments aimed at enhancing customer experience and operational efficiency. Partnerships have also been central to UBA’s growth, with the bank signing a Memorandum of Understanding with the Pan-African Payment Settlement System (PAPSS), bolstering cross-border trade across Africa.

Looking Ahead

As UBA moves into the second half of 2024, the bank is poised to continue its growth trajectory, buoyed by its strong capital position and market-leading capabilities. While the economic landscape remains uncertain, UBA’s focus on disciplined execution and customer-centricity promises sustained success.

“We are in a position of strength as we enter the second half of 2024, and our proven resilience will guide us in delivering excellent customer experiences and achieving market leadership,” Alawuba concluded.

With a clear vision and strong fundamentals, UBA remains one of Africa’s leading financial institutions, committed to building a better bank for the future.

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