UBA shares rally on N1.37tr half-year earnings

United Bank for Africa (UBA) Plc’s share price recorded nearly the highest possible gain yesterday at the Nigerian stock market after the banking group released its latest audited results showing impressive growths across key performance indicators.

UBA’s share price rose by 9.90 per cent to N28.30 per share as investors scrambled for the shares of the bank in immediate reactions to the half-year audited results. At the stock market, share prices are allowed to move, up or down, within the limit of 10 per cent daily.

Key extracts of the audited report and accounts for the six-month period ended June 30, 2024 released at the Nigerian Exchange (NGX) showed that UBA’s gross earnings crossed the trillion naira mark to N1.37 trillion within the first six months of this year, an increase of 39.6 per cent N981.77 billion recorded in comparable period of 2023. Interest income had increased by 134.3 per cent to N1.003 trillion in first half 2024, from N428.2 billion in first half 2023, underlining the fact that the group’s top-line performance was driven by core banking operations.

The balance sheet of the bank showed that total assets grew by 37.2 per cent from N20.6 trillion in December 2023 to close at N28.3 trillion by June 2024. Customer deposits increased by 33.7 per cent in the same period to close at N23.2 trillion up from N17.3 trillion recorded at the end of 2023. Shareholders’ funds increased by 47 per cent from N2.03 trillion in December 2023 to N2.99 trillion in June 2024.

In line with the bank’s culture of paying both interim and final cash dividend, the board of UBA has declared a record-breaking interim dividend of N2 per share, 300 per cent increase on interim dividend of 50 kobo paid for the first half 2023. This is also the highest interim dividend ever paid by any bank in Nigeria. UBA’s pre and post tax profits had closed first half 2024 at N402 billion and N316 billion respectively as against N403 billion and N378 billion in comparable period of 2023.

Group Managing Director, United Bank for Africa (UBA) Plc, Mr. Oliver Alawuba said the half-year 2024 results underscored the bank’s commitment to consistently deliver value to its shareholders.

He said: “UBA Group has continued to deliver strong double-digit growth in high quality and sustainable banking revenue streams, driven by a focused growth in balance sheet, transaction and digital banking businesses across geographies in line with our strategic goals.”

According to him, the group’s performance has been buoyed by consistent strong growth in all core and sustainable banking income lines with the intermediation business showing strong growth as net interest income expanded by 143 per cent to N675 billion.

On the plans for the rest of the year, Alawuba said: “As the group intensifies its customer acquisition drive, we are making significant investments in technology, data analytics, product research and innovation to enhance our value proposition and customer experience.”

Executive Director, Finance & Risk, United Bank for Africa (UBA) Plc, Mr. Ugo Nwaghodoh, expressed delight at the milestone achieved by the bank in driving operational efficiency, as reflected in cost-to-income ratio normalizing around the 50 per cent range.