The United Bank for Africa (UBA) has reported a remarkable surge in profits, boasting a profit before tax (PBT) of N757.7 billion for the fiscal year 2023. This substantial increase from N201 billion in 2022 marks a staggering 277 percent growth year-on-year, despite the daunting challenges posed by the global economic headwinds.
Addressing the release of its 2023 financial reports in a statement on Tuesday, UBA noted this unprecedented growth as a significant milestone in the annals of the company’s history. Notably, the bank’s profit after tax (PAT) also soared by 257 percent, ascending from N170 billion in 2022 to an impressive N608 billion in the year under review.
Moreover, UBA’s gross earnings experienced a meteoric rise, scaling from N853.2 billion at the close of 2022 to a substantial N2.08 trillion by the end of the previous year. This surge in earnings underscores the bank’s robust performance amidst a challenging economic milieu.
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An excerpt from the statement reads: “The Group’s shareholder’s funds crossed N2 trillion from N922 billion in 2022, whilst total assets crossed the N20 trillion mark (90.2% YoY growth). The Group is well positioned for further business expansion in FY2024 having closed FY2023 with a capital adequacy ratio of 32.6%.”
Oliver Alawuba, UBA’s group managing director and chief executive officer, expressed his satisfaction with the outstanding results achieved by the Group, stating, “I am very pleased with the unprecedented results achieved by our Group in FY2023.”
Commenting further on the results, Alawuba affirmed the bank’s commitment to expanding its market share and creating value for its shareholders.
He added, “Driven by our customer service and execution-led delivery model, we will continue to expand our market share and create value for our shareholders and meet the expectations of our various stakeholders.”
Ugo Nwaghodoh, UBA’s executive director of finance and risk management, highlighted the challenges encountered in 2023, including rampant inflation and currency depreciation.
“The Group conservatively set up significant impairment reserves against its overall risk assets portfolio considering the latent impact of the macroeconomic headwinds on our credit portfolio,” he said.
However, he expressed delight at the substantial growth in earnings and profitability recorded during the year.
“I am delighted however at the strong growth in earnings and profitability recorded in the year,” Nwaghodoh said.
He also emphasized the Group’s prudent management of risk assets in light of prevailing macroeconomic headwinds.
Looking ahead to the 2024 financial year, Nwaghodoh reiterated the bank’s commitment to sustainable growth and maintaining robust compliance and risk management practices.
Nigerian banks recorded significant financial gains in 2023, according to their financial reports.
With this extraordinary feat, UBA has now joined Zenith Bank and Access Corporation in the coveted N20 trillion club (20TC) in terms of total assets, underscoring its position as a powerhouse in the financial sector. Access Bank leads the pack with a total asset base of N26.66 trillion, followed by UBA with approximately N20.65 trillion, and Zenith Bank with a total asset of about N20.36 trillion.
Similarly, Access Corporation and Zenith Bank experienced significant growth in total assets, further solidifying their standing within the financial landscape. Access Corporation witnessed a remarkable increase in total assets to reach N26.7 trillion in 2023 FY, while Zenith Bank’s total assets surged to N20.4 trillion during the same period.