United Bank for Africa Plc has announced an interim dividend of N2 per share for the first half of 2024 (H1 2024), following a 40 percent year-on-year increase in gross earnings, which reached N1.37 trillion during this period.

The bank's pre-tax profit stood at N401.6 billion, reflecting a slight decrease of 1% compared to the N403.6 billion recorded in H1 2023. Additionally, the profit after tax for H1 2024 was N316.4 billion, marking a 16 percent decline from the N378.2 billion achieved in the same period last year.

This announcement signifies the largest interim dividend distribution among Nigerian banks for the first half of 2024, which has quickly bolstered investor confidence and resulted in a notable increase in UBA’s stock price.

The shareholders' equity of the banks rose by 47 percent, increasing from N2.03 trillion in December 2023 to N2.99 trillion.

During the review period, UBA experienced a significant increase in interest income, achieving N1 trillion, which represents an impressive 134% year-on-year growth compared to N428.3 billion recorded in H1 2023. Conversely, the group saw a 77% year-on-year decrease in net trading and foreign exchange gains, dropping to N98.2 billion from N418.3 billion in H1 2023.

The group reported a net interest income of N674.6 billion, reflecting a 143% year-on-year increase from N278.1 billion in H1 2023. Additionally, net fee and commission income grew by 85 percent to N145.1 billion, up from N78.3 billion in the same period of 2023.

In tandem with the rise in income, expenses also increased, with employee benefits expenses surging by 93 percent year-on-year from N69.4 billion in H1 2023 to N133.9 billion in H1 2024. UBA allocated N126.6 billion for wages and salaries over the six-month period, compared to N65.9 billion in H1 2023.

Operating expenses for the bank also saw a substantial increase of 122 percent, reaching N312.4 billion, up from N140.9 billion in H1 2023. The bank's expenditure on fuels, repairs, and maintenance amounted to N47.9 billion, which is 219 percent higher than the N15 billion spent in the first half of 2023.

In response to the group's performance, Oliver Alawuba, Managing Director of UBA Plc, stated, “The Group’s performance has been buoyed by consistent strong growth in all core and sustainable banking income lines.”

He further emphasized that to attract more customers, the bank has made significant investments in technology, data analytics, and product innovation to enhance their services and improve customer experience.

In the past six months, UBA's total assets increased from N20.7 trillion to N28.3 trillion. The bank's loans and advances to customers rose by 30% to N6.8 trillion, up from N5.2 trillion at the beginning of the year, while investment securities surged by 48% to N4.6 trillion, compared to N3.1 trillion previously. Customer deposits also saw a significant increase of 35%, reaching N20.1 trillion from N14.9 trillion at the start of the year.

Ugo Nwaghodoh, the Executive Director of Finance & Risk at UBA, expressed satisfaction with the bank's achievements in enhancing operational efficiency, as evidenced by a cost-to-income ratio stabilizing around 50%.

“Our focus on cost optimization allows for further improvements, as we seek to significantly reduce our foreign currency costs, implement robotic process automation, and integrate artificial intelligence into our operations.”

“The Group has made notable strides and is on track to strengthen its share capital to support its medium- to long-term goals, while also complying with recent regulatory requirements in Nigeria and other regions where we operate.”

According to the bank’s cash flow statement, UBA received N361.8 billion from borrowings but incurred N601.5 billion in principal and interest repayments over the six-month period.

In keeping with its tradition of distributing both interim and final cash dividends, UBA Plc's Board of Directors has announced an interim dividend of N2.00 per share for each ordinary share of N0.50 held by shareholders, marking a 300% increase from the N0.50 declared during the same period in 2023.

United Bank for Africa Plc stands as a prominent Pan-African financial institution, providing banking services to over thirty-five million clients through 1,000 business locations and customer service points across 20 African nations.

With offices in New York, London, Paris, and Dubai, UBA facilitates connections among individuals and businesses throughout Africa by offering retail, commercial, and corporate banking, along with innovative cross-border payment solutions, remittances, trade finance, and additional banking services.