The Group Managing Director of the United Bank for Africa Group, Oliver Alawuba, has offered reasons why the first half results of the group were good.
The Group Managing Director offered the reasons in his address on Thursday during the Investors’ Conference of the group.
Alawuba said commitment to the principles of enterprise, excellence, and execution, as well as technology and data analytics were behind the impressive performance in the first half of 2024.
He said this was despite global economic challenges, including high inflation and political instability across some regions in Sub-Saharan Africa, adding that the turmoil did not stop UBA from achieving double-digit growth and strengthening its position in the banking industry.
“We have remained resilient and focused on executing our strategy, driven by our commitment to the principles of enterprise, excellence, and execution,” he said.
According to Alawuba, the group is confident of a positive outlook in the second half of 2024.
Giving a breakdown of the bank’s financial performance, he said UBA recorded strong growth across all key metrics.
Profit Before Tax surged to N401.6 billion, an impressive reflection of the bank’s effective risk management despite macroeconomic pressures.
Customer deposits grew by 34 percent, increasing from N17.4 trillion at the end of 2023 to N23.2 trillion in H1 2024, a sign of strong customer trust and loyalty.
Total assets rose by 37 percent, reaching N28.3 trillion, up from N20.7 trillion at the end of 2023.
Net Interest Income experienced significant growth, expanding by 143 percent year-on-year to N675 billion, further demonstrating the bank’s strength in its core banking operations.
Further breakdowns showed that in digital banking, UBA reported a 107.8 percent year-on-year growth in income, highlighting the bank’s leadership in digital transformation and financial inclusion.
On digital banking and innovation, UBA’s investment in technology and innovation has paid off significantly, as income from digital banking and payments saw a dramatic increase, with fund transfer fees rising by 188.7 percent and remittance fees jumping by 228 percent.
Alawuba emphasised that UBA’s strategy of leveraging technology and data analytics is a key driver of this growth, helping to boost financial inclusion across Africa.
UBA’s focus on trade facilitation also showed promising results, with income from trade transactions growing by 83 percent to N18 billion, reaffirming the bank’s pivotal role in regional and international trade.
According to the GMD, the bank’s strategic partnerships continue to propel its growth.
UBA is a key partner in the Pan-African Payment Settlement System, enhancing cross-border trade and financial integration across Africa.
UBA has also expanded its collaborations with telecommunications companies, with funds under management now exceeding $1 billion.
Alawuba said: “UBA’s commitment to Environmental, Social, and Governance (ESG) initiatives remains strong.
“The bank has pledged to plant one million trees over the next year and continues to roll out Braille account opening packages to promote inclusivity for visually impaired customers.”
Alawuba expressed gratitude to UBA’s employees, customers, and shareholders, pledging continued dedication to achieving even greater milestones in the months ahead.
