By Biodun Durojaiye
United Bank for Africa (UBA) Group has demonstrated remarkable resilience in the face of challenging economic conditions, reporting double-digit growth across various key financial metrics for the first half of 2024, according to the Group Managing Director/CEO, Oliver Alawuba.
Speaking at the H1 2024 Investors’ Conference, Alawuba highlighted the impact of global economic instability characterized by high inflation, rising interest rates, and geopolitical tensions. Despite these headwinds, UBA Group has maintained its focus on its core strategic goals, achieving significant financial growth.
Strong Financial Highlights
UBA Group’s financial performance for H1 2024 underscores its sustained profitability and growth. Profit Before Tax surged to N401.6 billion, showcasing the bank’s effective risk management strategies amidst macroeconomic volatility. The Group also saw a notable 34% increase in customer deposits, reaching N23.2 trillion from N17.4 trillion at the end of 2023, signaling strong customer loyalty and confidence.
Total assets grew by 37% to N28.3 trillion, driven by robust customer relationships and the Group’s ability to capitalize on diverse opportunities. Net interest income, a core indicator of the Group’s banking operations, expanded by an impressive 143% year-on-year to N675 billion.
Growth in Digital Banking and Trade Facilitation
UBA’s digital banking operations continued to excel, with income from digital banking services surging by 107.8% year-on-year to N106 billion. Funds transfer and remittance fees also recorded substantial growth, increasing by 188.7% and 228%, respectively, as the bank continued to leverage technology to enhance financial inclusion across Africa.
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The Group further strengthened its position in trade facilitation, with income from trade transactions growing by 83% to N18 billion. Alawuba attributed these gains to UBA’s commitment to innovation, particularly in digital transformation, and the Group’s role in facilitating intra-regional and international trade.
Awards and Recognition
UBA Group’s performance has earned it several prestigious awards, including the “Best Bank in Frontier Markets” from Global Finance, “Best SME Bank in Africa,” and “Best SME Bank in Mozambique.” It also won the “Regional Bank of the Year for West Africa” at the African Banker Awards, reflecting its dedication to excellence and sustainable growth.
Strategic Focus on People, Processes, and Technology
In his address, Alawuba emphasized UBA’s continued investment in its people, processes, and technology. The Group promoted over 2,000 employees and paid bonuses to eligible staff across its operations in Nigeria and Africa. It also introduced smart automation initiatives to streamline service delivery, including new self-service options on its website for account updates and card management.
The bank’s commitment to technological advancements has enabled it to improve operational efficiency and deliver superior customer experiences. Alawuba noted that strategic partnerships are crucial to UBA’s growth, particularly its collaborations under the Pan-African Payment Settlement System (PAPSS), which enhance cross-border trade and financial integration.
Outlook for the Second Half of 2024
Looking ahead, UBA Group remains optimistic about its growth trajectory in the second half of the year. The Group is revising its 2024 guidance upwards for several key metrics, including deposit growth to 45% (up from the initial 20%) and loan growth to 40%. The Group expects a continued focus on “EXECUTION,” aiming for market leadership while delivering excellent customer experiences at all touchpoints.
Alawuba concluded by expressing gratitude to UBA’s employees, customers, regulators, and shareholders for their continued support. He stated, “We remain committed to achieving even greater milestones with your support.”
About UBA Group
UBA Group is a leading Pan-African financial institution providing banking services to more than 35 million customers across 20 African countries, as well as the United Kingdom, the United States, France, and the United Arab Emirates.
