Tony Elumelu, a Nigerian banker and multimillionaire businessman, is poised to receive N1.26 billion ($1.61 million) in interim dividends from his stake in United Bank for Africa Plc (UBA), solidifying his status as one of Africa’s most influential business executives.
The payout, set to be deposited into Elumelu’s bank account on Fri., Oct. 6, comes on the heels of a N2.14 billion ($2.78 million) dividend windfall earlier this year when UBA’s retained earnings exceeded the $500-million mark.
This remarkable dividend announcement mirrors the exceptional financial performance of UBA, one of Nigeria’s leading financial services groups. The surge in profits during the first half of 2023 exceeded expectations and has firmly entrenched its status as one of Nigeria’s largest financial services providers.
According to recently disclosed financial statements, UBA experienced an astounding 437.8-percent profit surge, leaping from N70.34 billion ($94.7 million) in H1 2022 to a staggering N378.23 billion ($512.4 million) during the same period in 2023.
The primary driver of this unprecedented financial growth can be attributed to the revaluation of investment securities in naira terms. This valuation adjustment came on the heels of the naira’s unification in the second quarter of 2023, resulting in a foreign exchange revaluation gain of N418.27 billion ($566.6 million) in the first half of the year.
The group’s financial performance has prompted its 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.
Furthermore, UBA has seen a substantial uptick in its total assets, surging from N10.85 trillion ($14.6 billion) on Dec. 31, 2022, to an impressive N15.38 trillion ($20.7 billion) as of June 30, 2023. Simultaneously, the bank’s retained earnings have soared from N429.53 billion to N683.02 billion during the same period, underscoring the bank’s remarkable growth trajectory.
As Elumelu stands to reap the benefits of this interim dividend, it reaffirms his position as one of Nigeria’s richest bankers. It serves as a testament to the financial prowess of UBA in an ever-evolving banking landscape.
