The shareholders of United Bank for Africa (UBA) Plc on Thursday approved the Board’s proposal to pay a dividend of N1.10 per share for the financial year ended December 31, 2022, commending the management for maintaining stronger performance in the period under review amid challenges in the banking sector.
The bank had earlier paid an interim dividend of N0. 20 kobo per share during the half year ended 2022, while a final dividend of N0.90k was declared at the end of the 2022 financial year, bringing the total dividend to N1.10 per share.
Faruk Umar of Advancement of Shareholder Rights Association speaking at the bank’s 61st Annual General Meeting (AGM) which was held virtually, commended the bank for the excellent results which culminated into an impressive dividend payout.
According to him, “I am very impressed by the growth in our bank’s earnings which is now very competitive; and which goes to show that our share price is currently grossly undervalued. We are happy that the bank’s presence is strengthened with its widespread into the African continent, and we are sure that the dividend will increase next year.”
In his address to shareholders, UBA Group Chairman, Mr. Tony Elumelu, took time out to appreciate shareholders who have stood by the bank in the past years, as he noted that this continues to encourage the board to do more.
He commended fellow board members for their striving effort in making the bank achieved impressive performance over the years.
According to him, “Shareholders must be very proud of your directors as they work very hard. They are extremely committed. The impressive results you see is largely due to direction the board continued to set for UBA.”
He stated further that “We appreciate all our regulators, customers and shareholders who have partnered with us in this exciting journey of growth, and in 2023, we hope to do even better than we did in the year 2022. We have therefore prioritised our plans for the year which is very clear – it is all about execution, especially as this year marks a significant milestone for the group.”
He noted that the bank looks to the future with great optimism, assuring shareholders of surpassing 2022 performance and continued to deliver value.
UBA’s Group Managing Director/Chief Executive Officer, Oliver Alawuba, who spoke on plans to consolidate the bank’s investments in Africa, said, “We are positioned to take Africa to the world and bring the world to Africa through capital, investment funds, trade flows and remittances flows.
“We also remain focused on simplifying trade and cross-border payment across the continent with UBA as one of the leading banks championing the Pan-African Payment and Settlement System (PAPSS), an AfCFTA agenda and brainchild of Afrexibank which is currently operating in six pilot countries in West Africa – Nigeria, Ghana, Sierra Leone, Guinea Liberia and Gambia,” Alawuba stated
He explained that UBA remains on the trajectory of achieving and even surpassing its targets for the 2023 financial year, adding, “We continue to maintain a close focus on cost efficiency and strictly control operating expenses across the group, including our new strategic investments. We are committed to delivering improved performances in the years ahead.”
At the end of the 2022 financial year, UBA delivered gross earnings of N853 billion, up 29.2 per cent on the prior year, and an operating income of N591 billion, representing an increase of 33.6 per cent from N443 billion in 2021. “
“Profit Before Tax increased by 31.2per cent to N201 billion from N153 billion recorded in 2021 while Profit After Tax rose by 43.5 per cent to close the year at N170 billion from N119 billion in 2021. In line with the bank’s overall objective of stimulating growth in the real sector, the bank grew its loan portfolio by N605 billion, or 21.4per cent, from the prior year.
