Nigerian tycoon Tony Elumelu’s UBA to reward shareholders with $63-million dividend

United Bank for Africa Plc (UBA), under the leadership of Nigerian businessman Tony Elumelu, is poised to reward its shareholders with a final dividend totaling N78.66 billion ($63.18 million).

This move underscores the bank’s commitment to returning value to its investors following a robust financial performance in 2023 that solidified its position among Nigeria’s biggest and most profitable financial services providers.

UBA reports 257 percent profit surge, recommends record dividend

The leading lender, led by Elumelu, one of Africa’s most influential business figures, reported a stellar 257-percent increase in profit to N607.7 billion ($468.8 million) compared to N170.3 billion ($131.4 million) in 2022.

This achievement, a testament to UBA’s resilience and sound financial management amidst economic challenges, prompted the board of directors to recommend a record final dividend payout of N2.3 ($0.00177) per share.

This represents a significant increase from the N0.9 ($0.00069) per share dividend recommended in the prior year, translating to a total payout of N78.66 billion ($63.18 million) to shareholders, compared to N30.8 billion ($24.72 million) in 2023.

Combining the proposed final dividend with the N0.5 ($0.0004) per share interim dividend paid in September 2023 (N17.1 billion or $13.73 million), the total dividend for the year reaches N95.76 billion ($76.91 million) or N2.8 ($0.00225) per share. The proposed dividend is subject to shareholder approval at the upcoming Annual General Meeting.

UBA’s strong 2023 performance

UBA’s exceptional 2023 performance reinforces its position as a leading financial institution driving economic growth and prosperity across Africa. The bank continues to leverage its extensive network and strategic initiatives under Elumelu’s visionary leadership.

The substantial profit surge was fueled by higher interest income and a notable rise in foreign exchange earnings throughout the year. Interest income jumped from N557.15 billion ($432.9 million) to N1.075 trillion ($832.35 million).

Fees and commission income also rose from N210.52 billion ($163 million) in 2022 to N307.31 billion ($238 million) by year-end 2023. Moreover, net trading and foreign exchange gain surged to N659.26 billion ($510.06 million) from N72.15 billion ($55.8 million) a year prior.

Group’s income skyrockets, assets double

The group’s exceptional performance propelled a surge in total comprehensive income, which soared from N150.5 billion ($116.4 million) in 2022 to an impressive N1.078 trillion ($832.4 million) in 2023.

Total assets also jumped, rising from N10.86 trillion ($8.39 billion) as of Dec. 31, 2022, to N20.65 trillion ($15.93 billion) by Dec. 31, 2023. Retained earnings also climbed remarkably, rising from N429.53 billion ($331.4 million) to N919.87 billion ($709.75 million).