Despite the challenging global economic climate and geopolitical uncertainties in Africa, UBA Group recorded a profit before tax of N404 billion, marking a remarkable increase of 371% compared to the same period in 2022. The annualized Return on Average Equity stood at an impressive 57.7%, reflecting substantial growth from the previous year's 17.1%.
Furthermore, the bank posted a profit after tax (PAT) of N378.24 billion, a significant leap of 437.8% over H1 2022. Operating Income witnessed a substantial growth of 206.6%, amounting to N783.96 billion in June 2023, surpassing the N255.67 billion reported a year earlier. Gross Earnings experienced a notable growth of 164%, reaching N981.78 billion in June 2023 compared to N372.36 billion in June 2022.
UBA demonstrated strong asset growth, with Total Assets surpassing the N15 trillion mark and reaching N15.38 trillion, representing a 41.7% increase from the previous year's N10.86 trillion. Customer Deposits also witnessed a sharp rise of 42.4%, amounting to N11.14 trillion in the period under review. Shareholders' Funds increased to N1.712 trillion, highlighting the bank's resilience in generating internal capital.
In line with its commitment to value creation for shareholders, UBA's Board approved an interim dividend of 50k per share, reflecting a significant increase of over 150% compared to the previous year.
Mr. Oliver Alawuba, the Group Managing Director/Chief Executive Officer of UBA, attributed the exceptional performance to the Group's dedication to delivering consistent value to its shareholders. He emphasized the bank's progress in digital payments, retail penetration, and the positive impact of revaluation gains resulting from the harmonization of foreign exchange rates in Nigeria.
Alawuba expressed satisfaction with UBA's strong revenue and profit growth, highlighting the benefits of the bank's diversification strategy across Africa and globally. He acknowledged the growth of the international business, particularly in the UAE, reinforcing the quality of earnings. Furthermore, he emphasized UBA's commitment to risk management practices, technological investments, and the facilitation of critical projects in various sectors across Africa.
Alawuba concluded by highlighting the significant contributions of UBA's three core geographical pillars (Nigeria, Rest of Africa, and Rest of the World) to the Group's profitability. He emphasized the bank's strategic positioning as a financial intermediary for Africa and the world, serving as a versatile last-mile distribution network for funds from donors and multilateral agencies.
Ugo Nwaghodoh, UBA's Executive Director Finance & Risk, emphasized the excellent performance seen in the financial numbers for H1 2023. The bank achieved a noteworthy annualized return on average equity of 57.7%, driven by improved operating income and revaluation gains.
Nwaghodoh also highlighted the bank's commitment to maintaining robust capital buffers to support business growth and sustain any potential losses. UBA's shareholders' funds amounted to an impressive N1.7 trillion, with a strong capital adequacy ratio of 36.4%.
It is important to note that UBA operates across 20 African countries, providing banking services to over thirty-seven million customers through its extensive network of 1,000 business offices and customer touch points.
UBA's outstanding financial performance in H1 2023 showcases its commitment to delivering excellence and providing reliable financial services across the African continent.
