UBA Reports Record-Breaking N803.7 Billion Pre-Tax Profit in 2024

UBA Pre-Tax Profit Hits N803.7 Billion in 2024, Setting a New Benchmark

United Bank for Africa (UBA) has released its audited financial report for the year ending December 31, 2024, revealing a pre-tax profit of N803.7 billion. This reflects a 6% growth compared to the N757.6 billion recorded in 2023.

Additionally, the bank’s post-tax profit soared to N766.5 billion, marking a 26.14% increase from the N607.6 billion reported the previous year. This milestone cements UBA’s reputation as one of Nigeria’s most profitable financial institutions.

Over the past two years alone, the bank has accumulated N1.37 trillion in profits, a stark contrast to the N570.4 billion reported over a five-year period leading to 2023.UBA Pre-Tax Profit Surge Fuels Dividend Growth

As part of its 2024 financial performance, UBA proposed a final dividend of N3.00 per share, bringing its total dividend payout to over N170 billion for the year. This is the bank’s highest-ever dividend payout, reinforcing investor confidence.

UBA, a member of the elite FUGAZ banking group (FirstBank, UBA, GTBank, Access Bank, and Zenith Bank), also reported a substantial rise in its total assets. The bank’s assets increased by N9.7 trillion, reaching a record N30.3 trillion, up from N20.65 trillion in 2023.

Key Financial Highlights: UBA Pre-Tax Profit Breakdown

A closer analysis of UBA’s financials reveals the primary factors behind its record-breaking N803.7 billion pre-tax profit:

• 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: N253.565 billion (+22.71% YoY)

• Pre-Tax Profit: N803.7 billion (+6.08% YoY)

• Post-Tax Profit: N766.5 billion (+26.14% YoY)

• Total Assets: N30.3 trillion (+46.82% YoY)

• Total Equity: N3.419 trillion (+68.39% YoY)

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How UBA Achieved Its Record-Breaking Pre-Tax Profit

The bank’s financial success in 2024 was largely fueled by interest income, as UBA capitalized on Nigeria’s high-interest-rate environment.

• Net interest income surged to N1.5 trillion, primarily from loans, advances, and investments in government-backed securities such as treasury bills.

• Investment securities alone contributed N1.1 trillion to total interest earnings, accounting for nearly half of UBA’s N2.3 trillion interest income.

• The demand for treasury instruments remained strong, as banks leveraged rising yields while borrowers exercised caution in taking loans.

On the expenditure side, interest expenses skyrocketed by 128.18%, reaching N839.2 billion due to rising funding costs. Additionally, the bank’s electronic banking fees contributed N236 billion, further solidifying its revenue base.

UBA Expands Pan-African Operations Amid Rising Pre-Tax Profit

A key driver of UBA’s growth is its African subsidiaries, which accounted for 51.7% of group revenue in 2024. This marks a significant shift from 2019, when non-Nigerian operations contributed only 31% of total earnings.

With a presence in over 20 African countries, UBA is positioning itself as one of Nigeria’s most successful cross-border banks.

At home, the Nigerian economy experienced moderate currency stability in the latter half of 2024, though the naira still depreciated by over 40% for the full year. This impacted the bank’s forex-related earnings, leading to a 72.43% drop in net trading and FX gains compared to 2023.

UBA’s Share Price Gains Following Pre-Tax Profit Announcement

UBA’s total assets now stand at N30.3 trillion, making it one of Nigeria’s largest financial institutions, trailing only Access Holdings and Zenith Bank.

To strengthen its capital base, UBA launched a N239.4 billion rights issue in November 2024, priced at N35 per share. This move aligns with the Central Bank of Nigeria’s N500 billion minimum capital requirement for commercial banks.

Following the release of its earnings report, UBA’s stock price surged by 4.48%, closing at N38.45 per share. This positive response reflects investor confidence in the bank’s sustained growth and record dividend payout.

Conclusion: UBA’s Financial Strength Continues to Grow

UBA’s N803.7 billion pre-tax profit in 2024 underscores its dominance in Nigeria’s banking industry. The bank’s strategic investments, robust interest income, and expanding pan-African presence have fueled its record-breaking financial performance.

With a strong balance sheet, aggressive capital-raising initiatives, and consistent dividend growth, UBA remains a top performer among Nigeria’s Tier-1 banks. Investors and stakeholders can expect continued profitability and expansion in 2025.