Nigerian tycoon Tony Elumelu’s UBA records $570 million in profit in 9 months

Omokolade Ajayi -

Building on its financial performance in the first half of 2023, United Bank for Africa Plc (UBA), the pan-African financial services group led by Nigerian businessman Tony Elumelu, has reported a remarkable profit of $570 million in the nine-month period of its 2022 fiscal year.

According to figures contained in the group’s recently published financial results, UBA’s profit after tax increased by a staggering 287.2 percent, rising from N116.04 billion ($147.27 million) in the nine-month period of its 2022 fiscal year (9M 2022) to N449.3 billion ($570.2 million) in the nine-month period of its 2023 fiscal year (9M 2023).

The triple-digit percent growth in the group’s profit 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, resulting in net trading and foreign exchange income of N450.25 billion ($571.4 million) during the period under review.

The enhanced value of the group’s assets also improved its interest and non-interest income during the nine-month period of its 2023 fiscal year.

The group’s net interest income increased from N282.5 billion ($358.5 million) to N443.1 billion ($563.3 million), while its net fee and commission income increased from N82.2 billion ($104.3 million) to N114.3 billion ($145.1 million).

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.

Elumelu, who owns 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 as one of Nigeria’s most affluent individuals.

As a result of its impressive financial performance, the group’s total assets in the first nine months of 2023 expanded from N10.85 trillion ($13.77 billion) on Dec. 31, 2022, to N16.24 trillion ($20.6 billion) as of September 30, 2023. While its retained earnings also surged from N429.53 billion ($545.11 million) to N750.8 billion ($952.8 million).