The Group Managing Director, United Bank for Africa (UBA) Group, Mr Oliver Alawuba, has announced that commitment to the principles of enterprise, excellence, and execution, as well as technology and data analytics, contributed to the impressive first half of 2024 performance.
During the bank’s Investors’ Conference held on Thursday, Alawuba stated that despite global economic challenges, including high inflation and political instability across some regions in Sub-Saharan Africa, UBA achieved double-digit growth, strengthening its position in the banking industry.
During the conference, Alawuba highlighted the economic environment, both globally and regionally, and the strategic execution that has driven the bank’s strong financial performance. “We have remained resilient and focused on executing our strategy, driven by our commitment to the principles of enterprise, excellence, and execution,” he stated.
According to him, looking ahead, the group is confident of a positive outlook for the second half of 2024.
As UBA enters the second half of the year, it does so from a position of strength, he said, adding that the bank is well-positioned to continue its growth trajectory, with an emphasis on market leadership and customer satisfaction.
UBA is committed to full-year targets of 45 per cent deposit growth, 40 per cent loan growth, and a return on average equity of 28 per cent.
Giving a breakdown of the bank’s financial performance, Alawuba noted that UBA recorded strong growth across all key metrics.
Profit Before Tax surged to N401.6 billion, an impressive reflection of the bank’s effective risk management despite macroeconomic pressures.
Customer deposits grew by 34 per cent, increasing from N17.4 trillion at the end of 2023 to N23.2 trillion in H1 2024, a sign of strong customer trust and loyalty.
Total assets rose by 37 per cent, reaching N28.3 trillion, up from N20.7 trillion at the end of 2023. Net Interest Income experienced significant growth, expanding by 143 per cent year-on-year to N675 billion, further demonstrating the bank’s strength in its core banking operations.
Further breakdowns show that in digital banking, UBA reported a 107.8 per cent year-on-year growth in income, highlighting the bank’s leadership in digital transformation and financial inclusion.
On digital banking and innovation, UBA’s investment in technology and innovation has paid off significantly, as income from digital banking and payments saw a dramatic increase, with fund transfer fees rising by 188.7 per cent and remittance fees jumping by 228 per cent.
Alawuba emphasised that UBA’s strategy of leveraging technology and data analytics is a key driver of this growth, helping to boost financial inclusion across Africa.
UBA’s focus on trade facilitation also showed promising results, with income from trade transactions growing by 83 per cent to N18 billion, reaffirming the bank’s pivotal role in regional and international trade.
According to the GMD, the bank’s strategic partnerships continue to propel its growth. UBA is a key partner in the Pan-African Payment Settlement System (PAPSS), enhancing cross-border trade and financial integration across Africa.
Additionally, UBA has expanded its collaborations with telecommunications companies, with funds under management now exceeding $1 billion.
“UBA’s commitment to Environmental, Social, and Governance (ESG) initiatives remains strong. The bank has pledged to plant one million trees over the next year and continues to roll out Braille account opening packages to promote inclusivity for visually impaired customers,“ he stated.
UBA’s achievements in the first half of 2024 have been recognised through several prestigious awards, including Global Finance’s Best Bank in Frontier Markets and Best SME Bank in Africa.
These accolades affirm UBA’s leadership in the banking sector and its focus on delivering value across its diverse markets.
In his closing remarks, Alawuba expressed gratitude to UBA’s employees, customers, and shareholders, pledging continued dedication to achieving even greater milestones in the months ahead.
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