Key Highlights
- The Group’s total assets rose by 27.2%, crossing the N10 trillion mark, to close at N10.9 trillion in December 2022; up from N8.5 trillion in 2021.
- The Bank proposed a final dividend of 90 kobos for every ordinary share of 50 kobos, for the financial year ended December 31, 2022, bringing the total dividend for the year to N1.10 per share.
- UBA recorded a 21.4% growth in loans to customers, moving up to N3.4 trillion in 2022, whilst customer deposits improved by 22.9% to N7.8 trillion, compared to N6.4 trillion recorded in the corresponding period of 2021.
United Bank for Africa (UBA) Plc, has released its audited financial results for the full year ended December 31, 2022, showing impressive performance across major indices.
The 2022 financials, filed by the Bank at Nigerian Exchange Limited (NGx) on Thursday, showed that gross earnings rose significantly to N853.2billion from N660.2billion recorded at the end of the 2021 financial year, representing a strong 29.2 percent growth.
Financial performance
Total assets rose by 27.2%, crossing the N10 trillion mark, to close at N10.9 trillion in December 2022; up from N8.5 trillion in 2021. This is a very significant achievement and milestone in the history of the powerhouse financial institution.
Despite the highly challenging global economic and business environment, UBA recorded a laudable profit before tax, with a 31.2% growth, to close the year under review at N200.8 billion, rising from N153.01 billion recorded at the end of the 2021 financial year; while profit after tax (PAT) grew by 43.5% to N170.2billion in 2022, compared to N118.7 billion recorded the year before. Consequently, UBA Group Shareholders’ Funds rose to N922.1 billion, as of December 2022, achieving an impressive growth of 14.6%, compared to the prior year.
In the year under consideration, UBA Group’s cost-to-income ratio dropped to 59.2%, from over 60% in the prior year, pointing to the Group’s improving efficiency.
Dividend
The Bank proposed a final dividend of 90 kobos for every ordinary share of 50 kobos, for the financial year ending December 31, 2022. The final dividend which is subject to the ratification of the shareholders during its upcoming Annual General Meeting (AGM) will bring the total dividend for the year to N1.10 per share, as the Bank had paid an interim dividend of 20 kobos, based on its audited 2022 half-year results.
Loans to customers
UBA recorded a 21.4% growth in loans to customers, moving up to N3.4 trillion in 2022, whilst customer deposits improved by 22.9% to N7.8 trillion, compared to N6.4 trillion recorded in the corresponding period of 2021, reflecting increased customer confidence, enhanced customer experience, successes from the ongoing business transformation program and the deepening of its retail banking franchise.
What the Group said
Commenting on the result, the Group’s Managing Director/CEO, Oliver Alawuba, said notwithstanding the tight and challenging operating environment, UBA continues to deliver significant performance.
- He said, “The Group delivered record headline earnings (+29.2%) and profitability (+31.2%) amid significant headwinds in markets where we are present and a heightened global risk environment. Our record earnings, growth, and robust capital levels supported higher returns for the shareholders. The Group is on course to achieve its strategic goals, and we are confident we will deliver our targets.
- “We have navigated unprecedented macroeconomic headwinds and made significant gains in our diversification strategy and Customer 1st philosophy as we build resilience in our operations across Africa and the Rest of the World to support the mission of providing superior value to our stakeholders. The Group’s Profit after Tax increased by 43.5% to N170.3 billion, with underlying growth in our key income lines and moderation in our cost of fund, resulting in robust growth of 14.6% in the Group’s Shareholders’ Funds and stronger liquidity. We continued to sharpen our risk management structure and practices to align with evolving risks”, Alawuba said.
Outlook
On the outlook for the year 2023, Alawuba said the bank is strategically positioned to increase its market share in our countries of presence, with expansion to Dubai, United Arab Emirates, and strong growth of its digital banking and payment businesses, which is pivotal to the evolving cashless economy in Nigeria.
“We strive to deliver increasingly attractive returns to our shareholders and continued positive impact in the geographies and economies in which we operate”.
UBA’s Executive Director, Finance and Risk Management, Ugo Nwaghodoh, said going by this recent performance, UBA remains on strong footing and is comfortably positioned to take on more opportunities in Nigeria, Africa, and beyond.
“UBA Group’s 2022FY performance was buoyed by strong balance sheet growth and improvement in Net interest margin, as Group’s Total Assets and customer deposits grew 27.2% and 22.9% respectively, whilst NIM grew to 5.61% from 5.57%. The continuous rejigging of the group’s risk management approach resulted in moderation of the NPL ratio, from 3.6% to 3.1%. The Group continued to rely on lower-cost funds, further reducing its cost funds to 2.1%.”
“We are delighted with the strategic progress we have made in FY22 riding on our customers’ trust, the dedication of our people, and the support of our wider partners and stakeholders. The bank remains committed to its business development drive, and prudent risk management practices, and we are optimistic to deliver the best value for our stakeholders in the days ahead,” he noted.
What you should know
United Bank for Africa Plc is a Pan-African financial institution, offering banking services to more than twenty-five million customers, across over 1,000 business offices and customer touch points, in 20 African countries and across 4 continents.
With a presence in the United States of America, the United Kingdom, France, and more recently the United Arab Emirates, UBA is connecting people and businesses across Africa through retail; commercial and corporate banking; innovative cross-border payments, and remittances; trade finance, and ancillary banking services.