Home » Bank led by Nigerian tycoon Tony Elumelu, posts $512-million half-year profit

Bank led by Nigerian tycoon Tony Elumelu, posts $512-million half-year profit

by Omokolade Ajayi
Tony Elumelu

United Bank for Africa Plc (UBA), the prominent pan-African financial services group led by Nigerian tycoon Tony Elumelu, has sent shockwaves through financial markets with its remarkable financial performance in the first half of 2023.

The bank’s stellar results, unveiled in its recently published financial report, exceeded expectations and have firmly entrenched its status as one of Nigeria’s largest financial services providers.

According to the disclosed figures, UBA, under the astute guidance of Elumelu, recorded a 437.8-percent surge in profits, skyrocketing from N70.34 billion ($94.7 million) in the first half of 2022 to a staggering N378.23 billion ($512.4 million) in the corresponding period of 2023.

This remarkable upswing can be attributed to the revaluation of investment securities in Naira terms. This occurred following the unification of the Naira in the second quarter of 2023, which resulted in a foreign exchange revaluation gain of N418.27 billion ($566.6 million) in the initial half of 2023.

Elumelu, who holds a 7.39-percent stake in UBA, equivalent to 2,527,372,285 ordinary shares, not only ranks as one of the wealthiest investors on the Nigerian Exchange but also stands as one of Nigeria’s most affluent individuals. Furthermore, he bears the distinction of being one of the country’s most prosperous bankers.

UBA’s remarkable financial performance is further underscored by a significant surge in interest income, which skyrocketed from N257.36 billion ($347.57 million) in H1 2022 to a commanding N428.29 billion ($578.42 million) in H1 2023.

The financial performance has spurred UBA’s board of directors to recommend an interim dividend of N0.50 ($0.00068) per share. This represents a remarkable 150-percent increase from the N0.30 ($0.00027) per share interim dividend distributed to shareholders in 2022. 

UBA, a dominant player in Nigeria’s financial services sector, with an extensive footprint spanning 24 countries across four continents, including the UK, the United States, France, and the United Arab Emirates, occupies a pivotal position in the African financial landscape.

Given its remarkable financial performance, the group has witnessed a substantial increase in total assets, surging from N10.85 trillion ($14.6 billion) on Dec. 31, 2022, to N15.38 trillion ($20.7 billion) on June 30, 2023. Concurrently, its retained earnings have escalated from N429.53 billion to N683.02 billion during the same period.

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