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Half Year: UBA Grows Earnings by 40% to N1.37 trillion, Declares Interim Dividend of N2.00 Per Share

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Total Assets up by 37.2% to N28.3 trillion
Customer Deposits hits N23.2 trillion, climbs 34%
Makes Profit Before Tax of N401.6bn

Africa’s Global Bank, United Bank for Africa (UBA) Plc has released its audited financial results for the half year ended June 30, 2024, showing impressive performance across some key financial indicators.

The audited financials released to the Nigerian Exchange Limited (NGX) on Monday, showed that the bank recorded double-digit growth in its gross earnings and operating incomes.

At the end of the first two quarters of the year, and despite the tough global macroeconomic climate in Nigeria as well as the geo-political environment challenges across major countries in Africa where the bank has subsidiaries, UBA recorded a 39.6 per cent increase in its gross earnings, which rose from N981.77 billion in 2023 to N1.371 trillion in June 2024.

Interest income also increased by 134.3 per cent to N1.003 trillion up from N428.2 billion recorded in June last year, while total assets went up by 37.2 per cent from N20.6 trillion in December 2023 to close at N28.3 trillion. Customer deposits, also leapt by 33.7 per cent in the same period to close at N23.2 trillion up from N17.3 trillion recorded at the end of 2023.

The results filed showed that profit before tax(PBT) which stood at N403 billion in June 2023, closed the half year at N402 billion, while profit after tax(PAT)dropped slightly from N378 billion to N316 billion in the year under consideration. However, the banks’ shareholders funds increased by 47 per cent from N2.03 trillion in December 2023, to N2.99 trillion.

In line with the bank’s culture of paying both interim and final cash dividend, the Board of Directors of UBA Plc has declared an interim dividend of N2.00 per share for every ordinary share of N0.50 each held by its shareholders, representing 300% increase compared to the N0.50 declared in the similar period of 2023.

UBA’s Group Managing Director/Chief Executive Officer, Mr. Oliver Alawuba, while commenting on the results underscored the bank’s commitment to consistently deliver value to its shareholders. He said, “UBA Group has continued to deliver strong double-digit growth in high quality and sustainable banking revenue streams, driven by a focused growth in balance sheet, transaction and digital banking businesses across geographies in line with our strategic goals.”

Continuing, the GMD said, “The Group’s performance has been buoyed by consistent strong growth in all core and sustainable banking income lines. Our intermediation business showed strong growth with net interest income expanding by 143% YoY to N675billion”.

On the plans for the rest of the year, Alawuba said, “As the Group intensifies its customer acquisition drive, we are making significant investments in technology, data analytics, product research and innovation to enhance our value proposition and customer experience.”

The Executive Director Finance & Risk, Ugo Nwaghodoh, expressed delight at the milestone achieved by the bank in driving operational efficiency, as reflected in cost-to-income ratio normalizing around the 50% range.

“Our cost optimization provides scope for further moderation, as we explore options towards a drastic reduction of our foreign currency denominated cost components, robotizing and automation of processes and application of artificial intelligence to our operations,” he stated.

He disclosed that the Group will focus on effectively managing the heightened credit, operational, cyber and information security risks, as it continues to conduct its business within the tenets of our moderate risk appetite in alignment with our sustainability goals.

“The Group has made significant progress and is on course to shore up its share capital to support its medium to long term aspirations, whilst aligning with the recent regulatory requirement in Nigeria and other jurisdictions. that we operate in,” Nwaghodoh further explained.

United Bank for Africa Plc is a leading Pan-African financial institution, offering banking services to more than thirty-five million customers, across 1,000 business offices and customer touch points in 20 African countries. With presence in New York, London, Paris and Dubai, UBA is connecting people and businesses across Africa through retail, commercial and corporate banking, innovative cross-border payments and remittances, trade finance and ancillary banking services.

Ramon​​​​ Nasir
Head, Media & External Relations
United Bank for Africa Plc

Business

Why we did not increase passport fees for Nigerians in diaspora — FG

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The Federal Government has explained its decision to maintain the current passport fee for Nigerians living abroad, unlike the recent increase implemented for those residing in the country.

The Minister of Interior, Olubunmi Tunji-Ojo, made this clarification while speaking to newsmen in Abuja.

Tunji-Ojo explained that the booklet used for Nigerian passports is imported and priced in dollars, meaning that as the naira-to-dollar exchange rate rises, the cost of the passport will also increase.

However, he noted that since Nigerians living abroad already deal in foreign currencies like the dollar, there is no need for an upward revision of their passport fees, so the price remains unchanged for them.

The Minister added that the goal of their ministry is to provide service, and not add to the burden of Nigerians with increase in prices.

“The booklet is imported which is dollar denominated. And at a time when you look at conversion rate of the dollar, there is no way the old price wouldn’t have led to subsidy. As a matter of fact, it was leading to subsidy.

“And we cannot do that. That’s why you realize that we didn’t increase the price of the passport in diaspora because the passport price in diaspora is dollar-dominated. Regardless of exchange, it has no effect.

“We are not looking at making profits off Nigerians. We are looking at serving the people. But when you look at how much a passport is supplied for beyond the logistics and the immigration officers, and convert it to naira, you’ll realize that the price when dollar N400 and when dollar is now N1,600 cannot be the same. That’s why we increased it from N34,000 to N60,000.

“When you look at even the rate of increase in terms of the exchange rate, the rate is lower.We increased to about 45%, but meanwhile the exchange rate has increased even more than that,” Tunji-Ojo said.

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Business

NRC to probe ticket racketeering on Abuja-Kaduna train service

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The Nigerian Railway Corporation (NRC) says it will address allegations of ticket racketeering on the Abuja-Kaduna train service (AKTS).

In a statement on Saturday, Yakub Mahmood, NRC’s deputy director of public relations, said some officials take advantage of the difficulties some passengers have with the online booking platform to engage in ticket racketeering.

He also appealed to the public, especially the passengers, to bear with the NRC, saying that the situation would soon be brought under control.

“Information has reached the management of the NRC on difficulties of passengers in obtaining tickets online resulting in ticket racketeering on the Abuja-Kaduna Train Service (AKTS) in recent times,” NRC said.

He also appealed to the public, especially the passengers, to bear with the NRC, saying that the situation would soon be brought under control.

“Information has reached the management of the NRC on difficulties of passengers in obtaining tickets online resulting in ticket racketeering on the Abuja-Kaduna Train Service (AKTS) in recent times,” NRC said.

“In order to arrest the ugly situation, the management has set up a team headed by the deputy director of ICT to investigate.

“In the meantime, the Managing Director of NRC, Mr Freeborn Okhiria, has directed Mr Mohammed Modibo Ibrahim to report and take over as the Manager of the AKTS with immediate effect.

“The Managing Director also directed the director of operation to increase train service frequencies on the route within the next two weeks.”

On January 22, 2021, the federal government launched the N900 million e-ticketing platform for the online purchase of train tickets on the Abuja-Kaduna service.

NRC said the e-ticketing platform was introduced to reduce the physical contact between passengers and staff of the corporation.

In November, the corporation launched the electronic ticketing platform for the Lagos-Ibadan and Itakpe-Warri train services.

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Business

World Bank okays $1.57bn loan for Nigeria

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The World Bank has approved three new loan requests totalling $1.57bn in financing for Nigeria.

According to a statement released on Monday, the approval is to support the Federal Government in strengthening human capital through better health for women, children and adolescents.

It added that the approved projects would also help build resilience to the effect of climate change such as floods and drought through improving dams safety and irrigation.

The statement read, “The World Bank has today approved three operations for a total of $1.57bn to support the Government of Nigeria in strengthening human capital through better health for women, children and adolescents and building resilience to the effects of climate change such as floods and droughts through improving dam safety and irrigation.”

The international lender stated that this new financing includes $500m for addressing governance issues that constrain the delivery of education and health, $570m for the Primary Healthcare Provision Strengthening Programme and $500m for the Sustainable Power and Irrigation for Nigeria Project.

“The HOPE-GOV and HOPE-PHC programmes combined will support the Government of Nigeria to improve service delivery in the basic education and primary healthcare sectors which are critical towards improving Nigeria’s human capital outcomes.

“The SPIN project will support improvement of dams’ safety and management of water resources for hydropower and irrigation in selected areas of Nigeria.

“The HOPE-GOV Programme will support Nigeria to address underlying governance weaknesses in the systems and procedures of government in two key human development sectors,” it noted.

The approval, made on September 26, 2024, highlights the World Bank’s commitment to strengthening Nigeria’s human capital and building resilience in the face of climate threats.

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Bodex F. Hungbo, SPMIIM is a multiple award-winning Nigerian Digital Media Practitioner, Digital Strategist, PR consultant, Brand and Event Expert, Tv Presenter, Tier-A Blogger/Influencer, and a top cobbler in Nigeria.

She has widespread experiences across different professions and skills, which includes experiences in; Marketing, Media, Broadcasting, Brand and Event Management, Administration and Management with prior stints at MTN, NAPIMS-NNPC, GLOBAL FLEET OIL AND GAS, LTV, Silverbird and a host of others

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