United Bank for Africa (UBA) Q4 2024 earnings summary

Executive summary

• FY24 profit after tax rose 26.1% to ₦767bn, supported by higher net interest and fee income; total assets grew 46.8% to ₦30.3tn.

• Gross earnings reached ₦3.187tn, up 53.6% YoY, while deposits increased 42.0% to ₦24.65tn.

Financial highlights

• Net interest income more than doubled to ₦1.531tn, up 116.4%; operating income rose 33.0% to ₦2.114tn.

• Operating expenses increased 69.0% to ₦1.056tn amid talent and technology investment, inflation, naira devaluation and foreign-operation costs.

• Profit before tax was ₦804bn, up 6.1%; profit after tax was ₦767bn, up 26.1% from ₦608bn.

• Net fee and commission income grew 92% to ₦589bn; digital banking income rose 91.9% to ₦253bn.

Outlook and guidance

• FY25 guidance: deposits +45%, loans +40%, cost of risk 2.8%, NPL ratio 6.5%, ROAE 25% and ROAA 2.4%.

• FY25 targets include CAR 28%, cost-to-income ratio excluding impairment 50% and NIM 8.5%.

• Guidance follows FY24 outcomes of deposit growth 42.0%, loan growth 35.3%, CAR 31.0% and NIM 9.02%.