UBA’s global expansion fuels strong earnings growth in 2024 – GMD Alawuba

United Bank for Africa (UBA) has reinforced its position as a leading pan-African financial institution with a robust financial performance in 2024, driven by global expansion, improved asset quality, and a growing market share.

Group Managing Director/Chief Executive Officer, Oliver Alawuba, expressed confidence in the bank’s growth trajectory, attributing its success to strategic investments and operational efficiency.

Alawuba made these remarks on Monday while commenting on UBA’s 2024 audited financial results, filed with the Nigerian Exchange Limited (NGX), which showcased impressive growth in key financial metrics.

UBA’s profit after tax surged by 26.14% to N766.6 billion in 2024, up from N607.7 billion in 2023. The bank’s gross earnings also soared by 53.6%, reaching N3.19 trillion, compared to N2.08 trillion recorded the previous year.

Despite global economic uncertainties, UBA maintained its upward momentum, posting a profit before tax of N803.72 billion, a 6.1% increase from N757.68 billion in 2023.

The bank’s total assets recorded remarkable growth, expanding by 46.8% from N20.65 trillion in 2023 to N30.4 trillion by December 2024. This milestone further cements UBA’s status as one of Africa’s most dominant financial institutions.

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Additionally, UBA’s Shareholders’ Funds experienced 68.39% growth, soaring from N2.03 trillion in December 2023 to N3.419 trillion in 2024.

Alawuba emphasized that UBA’s diverse global footprint has significantly contributed to its consistent earnings and operational success.

“Our continued investment in our highly diversified global network allows UBA to deliver high-quality, consistent earnings. Our businesses have been able to grow product and service income, expand our deposit base, and increase earnings while maintaining strong spreads and margins,” Alawuba stated.

The bank’s total deposits surged by 42.03%, rising from N17.4 trillion in 2023 to N24.7 trillion in 2024, reflecting strong customer confidence and an expanding business portfolio.

Alawuba further highlighted the success of UBA’s international operations, revealing that the bank’s subsidiaries outside Nigeria, particularly in the Rest of Africa and global markets, now contribute 51.7% of total Group revenue—up from 31% in 2019.

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“We are currently upgrading our business scope and authorization in France and considering other viable markets in the short to medium term,” he disclosed.

UBA’s Executive Director of Finance & Risk Management, Ugo Nwaghodoh, also provided insights into the bank’s capital strength and digital transformation strategy.

He noted that net interest income recorded triple-digit growth, leading to an increase in net interest margin from 6.83% in 2023 to 9.02% in 2024.

“UBA Group continues to demonstrate strong capital levels, with shareholders’ funds rising by 68.4% to N3.42 trillion and a solid capital adequacy ratio of 31.0%,” Nwaghodoh said.

He also stated that the bank has strengthened its asset quality, with the Non-Performing Loan (NPL) ratio improving to 5.58% and strong provision coverage at 81%. “As we defensively position the portfolio to navigate prevailing global and regional macroeconomic upheavals, our asset quality has significantly improved,” he added.

UBA remains committed to digital transformation, financial inclusion, and technology-driven banking services. The bank continues to invest in data analytics, product innovation, and employee training to enhance customer experience and expand its global reach.

With its sustained growth and expansion strategy, UBA is set to reinforce its position as a dominant player in Africa’s financial sector while driving long-term value for shareholders.