UBA records 26.14% surge in its profit after tax to N766.5bn in FY 2024, its highest-ever profit
• proposes final dividend of N3.00
United Bank for Africa Plc (UBA) has released its audited financial statements for the year ended December 31, 2024, reporting a surge of 26.14% to N766.5 billion in post-tax profit for the group, from N607.6 billion in 2023.
The bank also made a pre-tax profit of N803.7 billion, a 6% increase from the N757.6 billion recorded in the previous year.
This represents the highest annual profit ever recorded by the bank, solidifying its status as one of Nigeria’s most consistently performing financial institutions.
Over the last two years alone, UBA has reported a cumulative profit of N1.37 trillion, a sharp contrast to the N570.4 billion it posted in the five-year period leading up to 2023.
As part of its earnings announcement, the bank proposed a final dividend of N3.00 per share, bringing its total dividend N5.00 as it had paid N2.00 per share interim dividend.
UBA also reported a significant increase in total assets, which grew to N30.3 trillion, representing an addition of N9.7 trillion from the N20.65 trillion reported in 2023.
The bank becomes the first among Nigeria’s Tier-1 lenders to release its 2024 full-year results, which had been highly anticipated by investors amid a declining stock market.
Key financial highlights
• Interest income: N2.3 trillion, +120.40% YoY
• Interest expenses: N839.2 billion, +128.18% YoY
• Net interest income: N1.5 trillion, +116.35% YoY
• Impairment charges on financial instruments: N253.565 billion, +22.71% YoY
• Net interest income after impairment on financial instruments: N1.277 trillion, +154.98% YoY
• Fees and commission income: N589 billion, +91.66% YoY
• Fees and commission expenses: N233.9 billion, +97.88% YoY
• Net trading and FX gain: N181.7 billion, -72.43% YoY
• Other operating income: N46 billion, +37.68% YoY
• Pre-tax profit: N803.7 billion, +6.08% YoY
• Post-tax profit: N766.5 billion, +26.14%
• Earnings per share: N21.73, +24.24% YoY
• Total Assets: N30.3 trillion, +46.82% YoY
• Retained earnings: N1.4 trillion, +54.92% YoY
• Total Equity: N3.419 trillion, +4=68.39% YoY
A breakdown of UBA’s numbers shows its earnings were driven primarily by interest income, as the bank benefitted from a high interest rate environment in 2024.
Net interest income stood at N1.5 trillion, driven by strong earnings from loans and advances, as well as significant investments in risk-free government securities such as treasury bills.
Investment securities alone delivered N1.1 trillion in gross interest income, accounting for nearly half of the bank’s N2.3 trillion in total interest earnings.
The elevated interest rate environment in Nigeria during the year led to strong demand for treasury instruments. While banks capitalized on the yield opportunity, borrowers became more cautious, leading to reduced demand for credit.
On the cost side, interest expenses nearly tripled, rising by 128.18% year-on-year to N839.2 billion, reflecting the increased cost of funds amid tight monetary conditions.
UBA also posted N355 billion in fees and commission income, largely driven by its electronic banking business.
The bank earned about N236 billion from electronic-related fees—charges on transactions conducted via ATMs, POS terminals, mobile banking, and card-based payments.
However, fees and commission expenses also rose significantly by 97.88%, reaching N233.9 billion, compared to N118.2 billion in 2023.
While 2023 saw the bank posting outsized profits from foreign exchange gains, this year’s performance was more subdued in that segment.
Net trading and forex gains dropped to N181.7 billion, a steep decline from N659.2 billion in the prior year, reflecting lower reliance on forex volatility for profitability.
UBA also proposed a dividend per share of N3 which when combined to its interim dividend of N2 takes its total dividend to N5 per share.
