By Lateef Adegbite
In spite of the down turn in the nation’s economy because of the harsh economic policies of President Bola Ahmed Tinubu, which has to do with the removal of Petrol subsidy and unification of the official and parallel, popular, Black market exchange rates, on assumption of duties on May 29, 2023, the nation’s Banking sector, appears to have been the greatest beneficiary as it had helped the Money Deposit Banks, MDBs, and other financial institutions operating in the sector in boosting their profit margins and growing their assets.
This is evident going by the enormous Profit After Tax, PAT, that had been announced or yet to made public by some of the MDBs, in their audited financial results for the year 2024. From UBA plc, popular Pan African Bank, Guaranty Trust Holding Company plc, GTCO, Zenith Bank plc, Access Holdings plc, First Bank Nig. Plc, to other banks the story is the same: significant improvement in their 2024, audited financial reports.
UBA plc, which has Tony Elumelu, as the Chairman, going by its 2024, Financial results filed on the floor of the Nigerian Exchange Limited, NGX, on Monday, March 23, 2025, clearly shows that the bank had recorded astronomical profit growth rate in its 2024, financial year results.
Going by the 2024, financial results filed at the NGX on March 23, 2025, the bank’s Profit After Tax, PAT, was said to have witnessed an impressive growth rate from N607.7 billion, recorded at the end of the 2023, fiscal year to N766.6.
An elated Elumelu, a multi-billionaire business mogul had said the bank, 2024, PAT, was 26.4%, higher than the 2023, figure, described as significant improvement by financial analysts. The Banks Gross Earnings was said to have also grown from N2.08 trn, recorded at the end of 2023, financial year to N3.19trn, within the same trading period in 2024, showing a growth rate of 53.6 %.
Even the bank total assets were said to have also climbed roof top as it rose remarkably by 46.8%, from N20.65 trn in December 2023, Financial year to N30.4 trn as at December 31, 2024, which financial experts, had said signifies a leap for the bank with the largest spread in the African Continent.
Operating in 20 African countries, and the United Kingdom, UK, North American country of the United States, US, France, and the United Arab Emirate , UAE, the leading financial inclusion in Africa, which provides retail, commercial and institutional banking services , and cutting edge technology, the bank was said to have recorded a Profit Before Tax, PBT, of N803.72 billion , which the bank Chairman, Elumelu, had said represent 6.1% from the N757.68 billion that was said to have been achieved at the end of the 2023, financial year.
More interesting was how the Bank Group Shareholders’ funds rose immeasurably from N2.030 trn recorded as at December 31, 2023, to close at N N3.419 trn, as December 31, 2024, showing an impressive growth rate of 68.39%.
The impressive performance of the leading Commercial Bank in Nigeria, may may encourage Elumelu led Board of Directors in fulfillment of its promises to shareholders at the 2023, Annual General Meeting, AGM, that the bank has proposed final dividend of N3.00 for every ordinary share of 50 kobo, for the year of 2024.
True to his words, the Board, had approved the N3.00 dividend for every ordinary share thus bringing the total dividend in the year to N5.00, which the multi-billionaire business mogul and UBAplc, Chairman had said would still be subject ‘’to the ratification of the shareholders during its forthcoming AGM.
Oliver Alawuba, the Bank Group Managing Director, GMD, who could hide his feelings over the bank’s outstanding performance in its trading results in the 2024, fiscal year, which is close to hitting the trn mark in its yearly Profit, had said that the impressive performance demonstrates the bank’s continued focus on ‘’driving earnings growth, preserving asset quality, expanding business operations and deepening market share’’.
The GMD, noted that the bank under his leadership continued investment in highly diversified global economy network had allowed it ‘’to deliver high quality consistent earnings’’, stating that the bank’s businesses have been able to grow product and service income and expand its deposit base , allowing the group to increase earnings while maintaining strong spreads across the African Continent and other parts of the world and margins.
Giving an insider information, of the bank’s total deposit increasing by 42.3% from N17.4 trn in 2023 to N24.7 trn in 2024 and total assets hitting N30.4 trn from N20.7 trn, he had said that the released audited account of the bank filed on the floor of NGX, on Monday, March 23, 2025, ‘’reflect a broad-based growth across all its businesses across the country despite ‘’the country’s economic challenges, geopolitical uncertainties and exchange volatilities’’. He did not stop there.
He was said to further said that the improvement which was recorded by the bank in its 2024, core earnings profile is derived from high-quality income streams from funding intermediation, fees and commissions from the Nigeria. Note that the Pan African Bank is one of the Duty collecting banks of the Nigeria Customs Service, NCS, under the close watch of Bashir Adewale Adeniyi, MFR, which he had said further reflect its strong -term sustainable revenues generating capacity.
The had been declared as one of ‘’the Best Duty Collecting Bank in volume and remittances’’ to the Federal Government coffers at the November 29, 2024, Comptroller of Customs Award Night at Abuja, Federal Capital Territory, FCT, described as a major boost to the bank operations.
Besides getting outstanding payments from fees and Commissions for its services to NCS and other government agencies both at both the state and Federal levels, Alawuba, UBA plc, GMD, may have gladdened heart of shareholders when he stated that its ex-Nigeria(Rest of Africa & International ) operations have expanded significantly over the past years , and now contributing 51.7% of the Group earning revenues , up from 31% in 2019, delivering diversification benefits and further boosting long-term shareholder value.
The UBA plc, GMD, was said o have given assurance to shareholders that ‘’the revenue will continue to grow in the years ahead as it further explores strategic markets that align with the bank’s overall vision. He had alluded to the upgrading of the bank’s business scope and authorization in France and considering other viable markets in the short and medium -term.
Being ahead of its competitors in cutting edge technology, may have informed why the bank had resolved to continuously invest in digital technology, data analytics, product innovation, staff training and development, which the UBA plc, GMD, had repeatedly said will collectively ‘’enhance customers’ experience’’.
Ugo Nwaghodoh, Executive Director, Finance, Risk Management had said that bank recoded triple digit growth in interest income, resulting in remarkable improvement in margin from 6.83% in 2023 to N9.02 percent in 2024, while also recording strong double-digit growth in fee and commission income lines of 91.66%, clearly shows that its services are been reckoned by Organizations serviced.
Nwaghodoh, may have shocked many when he disclosed that as the bank navigates evolving risks , its management team remains focused on responsible growth , delivering customer- focused propositions , whilst ensuring compliance with the Central Bank of Nigeria, under the close watch of Olayemi Michael Cardoso, and other regulatory agencies requirements in all jurisdictions. Vintage UBA.
