Recently, Africa’s global bank, United Bank for Africa (UBA) Plc released its audited financial results for the full year (FY) ended December 31, 2024 with all its major indicators witnessing significant improvement.
The FY’24 financial scorecard
Looking at the 2024 financials at the Nigerian Exchange Limited (NGX), it showed an impressive increase in UBA’s profit after tax (PAT) which went up by 26.14 percent to close the year at N766.6 billion, up from N607.7 billion recorded at the end of the 2023 fiscal year.
Also, UBA’s gross earnings grew significantly from N2.08trillion recorded at the end of the 2023 financial year to N3.19trillion in 2024, representing a 53.6 percent growth.
The banks’ total assets also rose remarkably by 46.8 percent, from N20.65 trillion in 2023, to close at N30.4 trillion in December 2024; signifying a milestone leap for the bank with the largest spread across the continent.
Despite the highly challenging global economic and business environment, UBA recorded a profit before tax (PBT) of N803.72 billion representing a 6.1 percent increase from N757.68 billion recorded at the end of the 2023 financial year. Likewise, UBA Group shareholders’ funds rose from N2.030 trillion as at December 2023 to close the 2024 financial year at N3.419 trillion, achieving an impressive growth of 68.39 percent.
Read also: UBA ranks among top 5 banks in KPMG customer experience survey
Analysts want you to buy UBA stocks
In their April 2 note, Oluwayemisi Sunmola, Lagos-based Vetiva Research analyst asked investors to buy UBA shares. In the note titled “UBA: Strong interest income boosts FY’24 earnings”, the Vetiva analyst said their target price (TP) for the stock is N48 as against current price of N36.90.
Also, Coronation Research analysts in their March 24 “Results First Look”, noted that core bank earnings supported United Bank for Africa full year 2024 performance.
While rating UBA stock a “BUY”, Coronation Research analysts said their target price (TP) for the stock is N45.36 as against N37.80 per share it traded on March 24. The analysts noted that their target price for UBA shares represents an upside potential of +20 percent.
Also, in their March 24 note, CardinalStone Research analysts asked investors to buy UBA stocks. CardinalStone Research analysts said their target price (TP) for UBA is N46.86, thereby rating the stock a “BUY”. UBA closed the trading week ended March 28 at N36.9 per share.
UBA dividend for the year 2024 totals N5
As a result of the impressive performance and in fulfilment of the promise made by Tony Elumelu, chairman, UBA Group to shareholders at the last Annual General Meeting, the bank proposed a final dividend of N3 kobo for every ordinary share of 50 kobo, for the financial year ended December 31, 2024. This brings the total dividend in the year to N5. The final dividend is subject to the ratification of the shareholders during its upcoming Annual General Meeting (AGM).
This proposed final dividend and the N2 per share interim dividend paid in October 2024, brings the total dividend for the year to N5, amounting to a pay-out ratio of 26.6 percent (December 31, 2023: 16.32 percent), and a yield of 13.1 percent (31 December 2023: 10.92 percent).
Here’s what UBA management said
Oliver Alawuba, group managing director/chief executive officer, UBA Plc said, “UBA’s 2024 financial performance demonstrates our continued focus on driving earnings growth, preserving asset quality, expanding business operations and deepening market share.
He noted the bank’s resolve to invest continuously in technology, data analytics, product innovation, staff training and development, which, according to him, will collectively enhance our customers’ experience.
“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 and expand our deposit base, allowing the Group to increase earnings, while maintaining strong spreads and margins.
“The Group made a profit before tax of N803.7billion, with total deposits increasing 42 percent from N17.4 trillion at FYE 2023 to N24.7 trillion. Total assets grew 47 percent to N30.3 trillion from N20.7 trillion reflecting broad-based growth across all core businesses. These results were achieved despite prevailing macroeconomic challenges, geopolitical uncertainties, and exchange rate volatilities.
“I am particularly pleased with the marked improvement in our core earnings profile, as the profit is derived from high-quality income streams from funding intermediation, fees and commissions. This reflects strong long-term, sustainable revenues generation capacity,” Alawuba said.
According to him, “Our ex-Nigeria (Rest of Africa & International) operations have expanded significantly over the past five years, now contributing 51.7percent of Group revenue, up from 31percent in 2019, delivering diversification benefits and further boosting long-term shareholder value. This will continue to grow, as we further explore strategic markets that align with our overall vision. We are currently upgrading our business scope and authorisation in France and considering other viable markets in the short to medium term”.
“We remain committed to continuous investment in technology, data analytics, product innovation, staff training and development, which collectively enhance our customers’ experience.”
Ugo Nwaghodoh, executive director, finance and risk management, UBA Plc said the bank recorded triple digit growth in net interest income, resulting in remarkable improvement in net interest margin from 6.83 percent in 2023 to 9.02 percent, while also recording strong double-digit growth in fee and commission income lines of 91.66 percent.
He noted that as the bank navigates evolving risks, its management remains focused on responsible growth, delivering customer-focused value propositions, whilst ensuring compliance with regulatory requirements in all jurisdictions.
“UBA Group continues to demonstrate strong capital levels, with shareholders’ funds growth of 68.4 percent to N3.42 trillion and a solid capital adequacy ratio of 31 percent, and as we defensibly position the portfolio to navigate prevailing global and regional macroeconomic upheavals, asset quality improved, with NPL ratio moderating to 5.58 percent, with strong provision coverage at 81 percent”, Nwaghodoh noted.
The bank’s register of members will be closed on Monday, April 14
The proposed dividend subject to applicable withholding tax, will be paid to shareholders whose names appear in the Register of Members as at the close of business on Friday, April 11, 2025. The bank’s register of members will be closed on Monday, April 14, 2025. Qualification date is Friday, April 11, 2025, while payment date is on Friday, April 25, 2025.
The final dividend will be paid electronically to shareholders whose names appear on the Register of Members as at close of business on Friday, April 11, 2025 and who have completed the e-dividend registration and mandated the Registrar to pay their dividends directly into their bank accounts.
