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Half Year 2024: UBA Posts N1.37trn Gross Earnings as Customers Deposits Hit N23.2 trn

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▪︎UBA’s GMD, Mr Oliver Alawuba

The United Bank for Africa (UBA) Plc has released its audited financial results for the half year ended June 30, 2024.

Here are the highlights of its financial performances for the half year: “UBA Grows Earnings by 40% to N1.37 trillion, declares interim dividend of N2.00 Per Share.
Total Assets up by 37.2% to N28.3 trillion
Customer Deposits hits N23.2 trillion, climbs 34%. Makes Profit Before Tax of N401.6 billion.”

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.

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.

Further, interest income 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.

This represents a 300 per cent increase compared to the N0.50 declared in the similar period of 2023. 

Commenting on the results, UBA’s Group Managing Director/Chief Executive Officer, Mr. Oliver Alawuba, said that 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.”

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”.

Regarding the bank’s other 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.

He said: “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 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,” said  Nwaghodoh.

35 Million Customers
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.▪︎

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Uber, Bolt, inDrive workers to down tools in Lagos on May 1

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The Amalgamated Union of App-Based Transporters of Nigeria (AUATON), Lagos State Chapter, is planning a 24-hour protest on May Day over alleged anti-labour practices by app-based companies including Uber, Bolt.

In a statement signed by AUATON Public Relations Officer Steven Iwindoye on Tuesday, the union said members would be staying off the apps, refusing to work, and demanding that their rights be respected.

According to Iwindoye, the union is protesting against alleged poor wages, unjust deactivations, insecurity and unsafe working conditions.

Others are excessive commissions taken by app companies, lack of proper rider profiles, mandatory facial recognition systems and harmful and exploitative work policies.

He alleged that app-based companies like Uber, Bolt, Lagride, inDrive, and Rida had ignored the union’s concerns and disrespected its rights.

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BACITI Advocates Market Shift for Nigerian Exporters

Nigerian agricultural and manufacturing SMEs that have carved out a market in the U.S.now face a price disadvantage.

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The Bashir Adeniyi Centre for International Trade and Investment (BACITI) says that Nigerian fertilizers manufacturers and industrial goods had better consider exporting regionally under the AfCFTA .

BACITI also urges the Nigerian Export Promotion Council (NEPC) and Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) to help exporters cope with the tariff’s cost through rebates, tax breaks, or low-interest loans to affected exporters.

BACITI , in its Economic Insight April 2025, noted that the U.S. tariff will hit Nigeria’s non-oil export sector hardest.

Said the report: ” Many African countries rely on preferential access to the U.S.market under AGOA (African Growth and Opportunity Act), which granted duty-free treatment to thousands of African exports.African manufacturers who invested with AGOA preferences in mind are now at risk.

Textiles, leather, and agro-processing exports from countries like Kenya,Ethiopia, Ghana, Lesotho, and Nigeria may now face 10–14%tariffs, rendering the uncompetitive.

This could lead to job losses in export zones and industrial park.

Nigerian agricultural and manufacturing SMEs that have carved out a market in the U.S.now face a price disadvantage.

Niche products like Nigerian cocoa butter, dried fruits, or textiles and apparels which entered the U.S. duty-free will become costlier and uncompetitive.

Fertilizer makes up 2–3% of Nigeria’s exports to the U.S. A 10-14% tariff on fertilizer could lead U.S. buyers to seek cheaper suppliers, thus Nigerian producers might lose that market or have to accept lower net prices.

While crude oil is less likely to be directly impacted by the new tariffs, the broader uncertainty stemming from the ongoing trade war is likely to exert downward pressure on global oil prices, thereby affecting Nigeria’s export revenues and fiscal stability.

Indirect macro impact via oil prices: fallin oil prices due to slow global trade and economic uncertainty.

This would further reduce Nigeria’s export earnings and government revenue. A $10 drop in oil price, for example, costs Nigeria billions in export earnings.

Fiscal and FX pressures: A decline inNigeria’s export earnings would reduce dollar inflows, placing pressure on the naira.

In times of global uncertainty or trade wars, investors often retreat from riskier markets. As a result, Nigeria could face capital outflows, further currency depreciation, and rising inflationary pressure.”

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CPPE Spots Flaws in RMRDC Raw Materials Bill, Calling for its Withdrawal

Dr Muda Yusuf, the Director/ CEO of CPPE, said: ” The RMRDC involvement in trade policy matters is an aberration.  Besides, the bill has a very weak value proposition.

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The Centre for the Promotion of Private Enterprise (CPPE) has critiqued the Raw Materials Research and Development Council [RMRDC] Bill in the National Assembly, calling for its withdrawal.

The RMRDC Bill proposed by Senator Peter Onyekachi Nwaebonyi, which aims to ensure local processing of at least 30 percent of Nigeria’s raw materials before exportation, has received overwhelming support from the Manufacturers Association of Nigeria, and other stakeholders during the public hearing organized by the Senate Committee on Science and Technology, held on Wednesday, March 5, 2025.

However, Dr Muda Yusuf, the Director/ CEO of CPPE, said: ” The RMRDC involvement in trade policy matters is an aberration.  Besides, the bill has a very weak value proposition.

The CPPE advises the RMRDC to withdraw the bill.

Dr Yusuf urged the National Assembly to encourage the RMRDC to focus on its core mandate of raw materials research to offer the most cost-effective raw materials option for manufacturers.

Dr Yusuf explained that the RMRDC Bill currently before the National Assembly has the prospect of creating significant adverse and unintended consequences for Nigerian exporters and manufacturers.

What study has been done to determine the local processing capacity for each category of primary products currently being exported?

What metrics would be used to determine raw materials that manufacturers would be allowed to import into the country?

What is the effective time frame for implementation?Is it within the mandate of the RMRDC to promote the ban on exports or imports?

The position of the CPPE is that this bill raises more questions than answers.

It is a very simplistic proposition that has not taken into account the critical challenges of manufacturing, processing,, and value addition in the Nigerian economy. “

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