Earnings Update: United Bank for Africa FY 2024 – Strong Earnings Momentum Sustained, with Solid Asset Growth

Event

United Bank for Africa (“The Group”) has once again demonstrated resilience and growth in its full-year financial results, highlighting key achievements despite a challenging economic environment. For the period ending December 2024, the Group delivered a solid performance, marking growth in both its top-line and bottom-line results. The Group reported a 54% year-on-year jump in gross earnings to N3.19trn from N2.08trn in FY 2023, driven mainly by strong interest income performance. Non-interest income saw a decline during the year, primarily due to a loss on net fair value on derivatives. Despite this, UBA managed to maintain overall profitability.

Dividend Information

UBA declared a final dividend of N3.00 per share for FY 2024, bringing the total dividend for the year to N5.00, inclusive of the N2.00 interim dividend paid earlier. This represents a 79% increase from the total dividend of N2.80 per share declared for FY 2023 (N0.50 interim and N2.30 final). The qualification date is April 11, 2025, while the payment is scheduled for April 25, 2025.

Valuation

We raise our fair value estimate on UBA to N46.82 (previously: N37.17), reflecting its strong earnings momentum and sustained balance sheet growth. We maintain our BUY rating on the stock, supported by an attractive total return potential of 48%, comprising a healthy 16% dividend yield and 32% capital upside.

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