United Bank for Africa (UBA) generated an impressive N284.7 billion from electronic business transactions in the 2024 financial year, underscoring the growing adoption of digital banking services across Nigeria and its global markets.
This marks an impressive 85.9 per cent growth from the N157.1 billion generated in 2023, as revealed in the bank’s audited financial statement for the year ended December 31, 2024.
UBA’s electronic transaction fees encompass revenue from various digital banking channels, including ATM withdrawals, card transactions, online and mobile banking services, interbank transfers, SMS/email alerts, and merchant payments.
Despite this growth, electronic transaction expenses also surged, climbing to N199.2 billion in 2024 from N107.1 billion in 2023, indicating increased investments in digital infrastructure and payment processing networks.
UBA’s remittance fee income saw a remarkable 158 per cent increase, rising to N39.91 billion in 2024 from N15.45 billion in the previous year.
In this segment, UBA outperformed several industry peers.
For example, Zenith Bank generated N13.48 billion in foreign currency transaction fees in 2024—significantly lower than UBA’s remittance earnings—highlighting UBA’s dominance in cross-border payments.
The top-tier lender posted a pre-tax profit of N803.7 billion in 2024, marking a modest 6 per cent increase from the N757.6 billion reported in 2023.
However, its post-tax profit surged by an impressive 26.14 per cent to N766.5 billion, the highest in the bank’s history. To reward shareholders, UBA announced a final dividend of N3.00 per share, bringing its total 2024 dividend payout to over N170 billion.
Net interest income stood at N1.5 trillion, fueled by strong earnings from loans and N1.1 trillion from investment securities, including treasury bills.
Nigeria’s high-interest rate environment contributed to increased returns on government securities but also led to cautious borrowing among customers.
However, the bank’s interest expenses nearly tripled, soaring by 128.18 per cent year-on-year to N839.2 billion due to higher funding costs, reflecting the broader impact of monetary policy tightening by the Central Bank of Nigeria.
Economic analyst, Dr. Samuel Adeyemi, noted, “UBA’s significant growth in digital transaction revenue highlights the increasing reliance on electronic banking in Nigeria. The bank’s ability to leverage digital platforms effectively has positioned it as a leader in the fintech-driven banking revolution.”
Similarly, fintech consultant, Dr. Amina Yusuf, emphasized the broader implications of UBA’s remittance income growth.
“With Nigeria being one of the largest recipients of diaspora remittances, UBA’s expansion in this area underscores the bank’s strategic positioning in cross-border payments. However, sustaining this growth may depend on regulatory policies and foreign exchange stability.”