United Bank for Africa (UBA) recently announced its half-year financial results for 2024, revealing a pre-tax profit of N401.5 billion. This figure shows a slight decline from the N403.6 billion reported in the same period last year. Despite this decrease, the bank’s strong financial performance is primarily attributed to a significant rise in net interest income.
For the first half of the year, UBA reported net interest income of N614.4 billion after impairments, marking an impressive 395% increase from the N124.1 billion recorded in the first half of 2023. This surge indicates that the bank’s profitability is fundamentally grounded in its core business operations rather than relying on foreign exchange gains.
In the second quarter alone, UBA’s net interest income reached N317 billion, an extraordinary 2,640% increase compared to the previous year’s quarter. However, pre-tax profits for the same period fell to N245.2 billion, down 28% from the previous year. This decline can be attributed to substantial forex gains that had bolstered profits in the second quarter of 2023. When adjusted for these forex effects, the bank’s second-quarter performance is considered one of its strongest to date.
Key performance metrics from the second quarter highlight the bank’s resilience. Net fees and commissions increased by 68% to N82.9 billion, and operating income rose by 8% to N496.7 billion. However, operating expenses surged by 111% to N251.5 billion, reflecting the challenges of a dynamic economic environment.
Further demonstrating UBA’s growth trajectory, loans and advances reached N6.9 trillion, up 49%, while total deposits soared by 84% to N23.2 trillion. The bank’s total assets also grew significantly, reaching N28.3 trillion, a rise of 84%. Notably, borrowings increased by 110%, indicating a strategic move to bolster its lending capacity.
As a reflection of its strong performance, UBA declared a record interim dividend of N2 per share, signaling confidence in its operational health and commitment to returning value to shareholders.
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