UBA Reports Strong N3.2tr Revenue
…Prioritizes Digital Expansion at AGM
By Patience Ikpeme
The United Bank for Africa (UBA) Group has announced impressive financial results for the past year, generating a gross revenue of N3.2 trillion and a profit after tax of N767 billion.
Addressing shareholders at the 65th Annual General Meeting (AGM) of the United Bank for Africa (UBA) held in Abuja, the Group Chairman, Tony Elumelu, revealed the bank’s success in deposit mobilization. “We successfully sustained our deposit mobilization efforts, growing total deposits by 42% to N24.6 trillion, up from N17.4 trillion in the corresponding period of 2023,” he stated.
Mr. Elumelu also noted the expansion of the bank’s lending activities. “Our loan book expanded by 35% to N7.5 trillion, up from N5.5 trillion, demonstrating our commitment to fund growth and make our contribution to Nigeria and Africa’s economic transformation.”
He further informed shareholders that UBA Group maintained a robust and diversified balance sheet, with total assets and shareholders’ funds closing at N30.3 trillion and N3.4 trillion respectively. To provide context, he clarified that the current N3.4 trillion in shareholders’ funds equates to $3.2 billion.
These strong results, according to Mr. Elumelu, “reflect the execution of our long-term strategy, the hard work of our dedicated staff, providing tangible solutions to real needs and delivering value, innovation, and service to all.”
He conveyed UBA’s pride in supporting businesses, governments, and consumers across Africa and globally. “We serve over 45 million people across four continents, in 24 countries, and with a corporate client base that is truly global. So when your bank is serving 45 million people, that is many countries put together as a population.”
Addressing shareholder concerns regarding the Central Bank of Nigeria’s (CBN) directive to increase the minimum capital requirement for international commercial banks to N500 billion, Mr. Elumelu provided an update on the bank’s compliance efforts.
“Our current capital in the year of 2024 was N116 billion. However, following the rights issue that we launched in November last year, which was oversubscribed, 251 billion has been verified and approved by the Central Bank of Nigeria,” he explained.
He further clarified, “However, given that it is a rights issue, we could only take up N240 billion in the amount we set out to raise. This left an oversubscribed position of N11.6 billion, which had to be returned to the shareholders. So we thank you, shareholders, for your unprecedented confidence and commitment to UBA.”
“With this success, our new capital is now N355.2 billion. The remaining N144.8 billion required to meet the regulatory threshold will be raised later this year, and the proceeds from the rights issue will be duly invested in additional technologies and Business Growth in Nigeria, across Africa and the globe. This will further strengthen our group’s seven decades of impressive performance,” Mr. Elumelu assured.
He positioned UBA as “not just a financial institution” but “an engaged and active corporate citizen,” emphasizing the bank’s commitment to social responsibility and integrating ESG principles into its operations. In 2024, UBA planted 4,550 seedlings and distributed over 13,000 books through its Read Africa Initiative.
Mr. Elumelu also celebrated the bank’s recognition, including being named Bank of the Year in five African countries by Bankers Magazine and Best Regional Bank West Africa at the African Bankers Award.
He expressed gratitude to the management, staff, boards, customers, shareholders, and regulators for their contributions to UBA’s journey.
The Group Managing Director/CEO, Oliver Alawuba, addressed shareholders, stating that the primary focus of UBA is the customer. He outlined the bank’s significant investments in digital banking to enhance customer experience, including the adoption of artificial intelligence.
Mr. Alawuba also spoke about UBA’s expansion plans into France and Saudi Arabia, noting that digital technology is crucial for serving its growing international presence. He addressed customer feedback, stating that the bank has established a customer fulfillment center and is improving technology to manage feedback and ensure prompt responses. He also assured shareholders of the bank’s commitment to securing customer accounts through technological investments.
Looking ahead, Mr. Alawuba expressed optimism about achieving the set target for shareholder returns, indicating a positive trajectory for the bank’s future performance.
