United Bank for Africa (UBA) has reported a historic achievement in its deposit mobilisation efforts, growing total deposits by an impressive 93 percent to N17.36 trillion in the year ending 2023, up from N8.99 trillion in 2022. This significant increase in deposits bolstered the bank’s financial performance, contributing to a gross revenue of N2.08 trillion and a profit after tax of N607.69 billion.
In light of these robust results, UBA’s board of directors, led by Chairman Tony Elumelu, proposed a final dividend of N78.7 billion for the 2023 financial year, representing N2.30 per ordinary share. This proposal was unanimously approved at the bank’s Annual General Meeting (AGM) held on May 24 in Abuja. Combined with an interim dividend of N0.50 per share paid for the first half of 2023, shareholders will receive a total dividend of N2.80 per share, amounting to N95.8 billion.
Speaking at the AGM, Elumelu highlighted UBA’s enduring legacy of 75 years, emphasizing its commitment to catalyzing Africa’s growth and providing valuable services to its customers. “This legacy is woven from decades of insightful market understanding and a steadfast commitment to the communities we serve,” he stated. Elumelu also stressed the importance of creating job opportunities for African youth, describing youth unemployment as a “betrayal of generations.”
In 2023, UBA launched the Graduate Management Accelerated Programme (GMAP), inducting 700 graduates into the UBA Tribe after a rigorous six-month training program. This initiative underscores the bank’s dedication to grooming young African professionals and enhancing its talent pool.
UBA’s financial statement revealed a 61 percent expansion in its loan book to N5.55 trillion from N3.44 trillion, with potential plans to further grow this to N15 trillion to increase revenue from credit lending. Elumelu also emphasized UBA’s role in facilitating secure and convenient payment methods for businesses and supporting governments in distributing payments efficiently during critical times.
Oliver Alawuba, the Group Managing Director, reassured shareholders of UBA’s resilience and readiness to meet the Central Bank of Nigeria’s (CBN) recapitalization requirements. He noted that UBA maintained a well-structured and diversified balance sheet, with total assets and shareholders’ funds closing at N20.65 trillion and N2.03 trillion, respectively.
The bank experienced robust trading activity in 2023, with 9.63 billion shares exchanged, representing 28.2 percent of shares outstanding. The broader Nigerian equities market reached a 15-year peak, driven by market-friendly reforms and strong corporate performance. The NGX All-Share Index closed at a record high of 74,773.77 points, reflecting a substantial 45.90 percent year-to-date gain. Market capitalization surged to N40.92 trillion, marking a 31.8 percent increase from the end of 2022. UBA’s share price concluded the year at N25.65, translating to a remarkable 237.5 percent year-to-date increase.
In addition to these financial achievements, UBA’s continued focus on sustainability and corporate responsibility has further solidified its position as a leading financial institution in Nigeria and across Africa.