The United Bank for Africa has released its audited result for the 2023 financial year, reporting profit before tax of N757.680 billion.
The figure represents a growth of N556.804 billion or 277.19 per cent compared with N200.876 billion recorded in the preceding year.
The bank’s group result submitted at the Nigerian Exchange showed that interest income went to N1.075 trillion from N557.152 billion reported in the comparative period of 2022.
The bank paid tax of N149.984 billion as against the N30.599 billion it paid in the preceding year, bringing total profit for the year to N607.696 billion from N170.277 billion, representing a growth of N437.419 billion or 256.89 per cent
An analysis of the result showed that interest expenses rose from N177.663 billion to N367.807 billion, while net interest income rose from N379.489 billion from N707.540 billion achieved in the preceding year.
Total assets also went to N20.633 billion at end of December 31, 2023 from N10.857 billion recorded in the preceding year.
The directors proposed a final dividend of N2.30 per share against N0.90 per share it paid for 2022 financial year
This proposed final dividend and the N0.50 per share interim dividend paid in September 2023, brings the total dividend for the year to N2.80, amounting to a pay-out ratio of 16.32 per cent against ratio of 28.14 per cent in 2022, and a yield of 10.92 per cent compared with a yield of 14.47 per cent recorded in the previous year.
The bank said the proposed dividend will be presented to shareholders for approval at the next Annual General Meeting and paid subsequently subject to withholding tax at an appropriate rate.
…Zenith posts N2.132trn in gross earnings
Also, Zenith Bank Plc recorded significant growth at the end of 2023 financial year, posting gross earnings of N2.132 trillion.
The bank’s financial result presented to Nigerian Exchange showed that the earnings grew by N1.186 trillion or 125.56 per cent from N945.554 billion reported the previous year.
Profit after tax also went up faster from N223.911 billion to N676.053 billion, representing an increase of N452.142 billion or 201.93 per cent for the period.
The directors proposed a final dividend of N3.50 per share for approval by shareholders at the next annual general meeting.
The recommended final dividend, up from N2.90 in the previous year, brings total payout per share for the year to N4.00 each, from N3.20 each recorded in 2022.
The dividend is payable to shareholders whose names appear on the register of members as of close of business on April 25, and payable electronically on May 8, when the meeting is held in Lagos.
A breakdown of the result showed that interest and similar income rose by N604.508 billion or 111.91 per cent from N540.166 billion in 2022 to N1.144 trillion at end of December 2023, with interest and similar expense jumped to N408.492 billion from N174.539 billion achieved in the preceding year.
Net interest income stood at N736.182 billion from N366.627 billion.
Impairment charge for the period rose to N409.616 billion from N123.252 billion in the comparable period, resulting in net interest income after impairment loss on financial and non financial instruments of N326,568 billion from N243.375 billion recorded previously.
Net income on fees and commission dropped from N132.795 billion to N109.307 billion; operating income soared to N242.588 billion from N35.494 billion achieved in the previous year.
Depreciation of property and equipment increased marginally from N26.63 billion to N29.857 billion while amortisation of intangible assets stayed flat at N3.469 billion from N3.678 billion; followed by personnel expenses of N124.415 billion from N86.417 billion reported last year.
Operating expenses rose to N291.731 billion from N222.972 billion; resulting in a profit before tax of N795.962 billion from N284.65 billion; just as income tax expenses increased to N119.053 billion from N60.739 billion.
On the balance sheet, Total Assets grew to N20.368 billion from N12.285 billion in the prior full year, lifted by the N6.556 trillion in loans and advances, which climbed to N4.013 trillion Total liabilities, amounted to N18.045 trillion from N10.906 trillion which customer deposits amounting to N15.167 trillion from N8.975 trillion recorded in the corresponding period of 2022.
