UBA maintains strong financial growth trajectory — Posts 203% increase in profit for 2023
United Bank for Africa (UBA), one of the leading banks in Ghana, continued its sterling financial performance trajectory in the 2023 financial year.
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The bank, noted to be one of the most resilient in the industry, posted a profit-before-tax for 2023 of GH¢276 million in the year under review.
This represents a whopping 203 per cent year-on-year increase from GH¢91.2 million recorded the previous year.
Total assets of UBA Ghana grew by GH¢1.7 billion to GH¢7.9 billion for 2023, representing a 28 per cent increase despite the economic challenges. In line with the bank’s strategic goal of capturing a significant market share, it succeeded in growing deposits by 34 per cent to GH¢6.3 billion at year-end 2023.
Addressing shareholders at the bank’s Annual General Meeting (AGM) in Accra yesterday, the Managing Director of the UBA Ghana, Uzoechina Molokwu, attributed the increase in profit to a notable increase in interest income.
“This improvement in interest earnings significantly contributed to the overall growth observed in the profit-before-tax for the year. Following an increase in net operating income, the cost-to-income ratio remained constant, thus, 27 per cent for both 2023 and 2022, evidencing operational efficiency.
“The performance of the bank in the phase of the challenging economic conditions in the country is a testament to its resilience and prudent management practices.
As a result of the implementation of the government’s Domestic Debt Exchange Programme (DDEP) which resulted in the impairment of the balance sheets of many within the financial services sector, the solvency of some banks, according to analysts, is being seriously threatened.
Focus
“Our primary focus remains to consistently deliver superior returns to our shareholders, developing employees, upholding our commitment to the success of our customers, the advancement of our community and the overall growth of the economy in which we operate,” Mr Molokwu, who is also the Chief Executive Officer of the bank, said.
Performance highlights
The Board Chairman of the Bank, Kweku Andoh Awortwi, in his statement, gave a breakdown of the bank’s performance in the year under review. “Despite all the economic challenges, the balance sheet grew by 28 per cent to GH¢7.9 billion (GH¢6.2 billion in 2022), driven by 34 per cent customer deposits to GH¢6.4 billion from GH¢4.7 billion in 2022,” he said.
According to him, as part of the bank’s commitment to creating value for its shareholders, “we increased our Shareholders’ funds by 15 per cent from GH¢1.2billion in 2022 to GH¢1.4 billion in 2023. Bank liquidity was 75.8 per cent in 2023, a slight growth from 2022’s position of 75.4 per cent, indicating the strength and health of its balance sheet.