Written by SpringsNewsNG Media Limited, April 2, 2025

Africa’s global bank, United Bank for Africa (UBA) Plc, has released its audited financial results for the full year (FY) ended December 31, 2024, showcasing significant improvements across all major financial indicators. The robust financial performance has led to multiple analysts rating UBA stocks as a “BUY.”

FY’24 Financial Scorecard

UBA’s FY’24 financials at the Nigerian Exchange Limited (NGX) highlight impressive growth. The bank’s profit after tax (PAT) surged by 26.14 percent, closing the year at N766.6 billion, compared to N607.7 billion recorded in 2023.

Gross earnings also saw a remarkable increase, rising by 53.6 percent from N2.08 trillion in 2023 to N3.19 trillion in 2024. Total assets grew by 46.8 percent, reaching N30.4 trillion, up from N20.65 trillion in 2023, reinforcing UBA’s status as the bank with the largest footprint across Africa.

Despite a challenging global economic climate, UBA recorded a profit before tax (PBT) of N803.72 billion, a 6.1 percent increase from N757.68 billion in 2023. Additionally, shareholders’ funds grew significantly by 68.39 percent, climbing from N2.03 trillion in December 2023 to N3.419 trillion in 2024.

Analysts Recommend Buying UBA Stocks

Following the release of UBA’s FY’24 results, multiple research firms have placed a “BUY” rating on the stock, citing strong interest income and impressive financial performance.

• Vetiva Research: In an April 2 note, Lagos-based analyst Oluwayemisi Sunmola set a target price (TP) of N48 for UBA shares, which currently trade at N36.90.
• Coronation Research: In their March 24 report titled “Results First Look,” analysts noted that UBA’s strong core bank earnings drove its outstanding performance. They set a TP of N45.36, up from its trading price of N37.80 per share on March 24, representing a potential 20 percent upside.
• CardinalStone Research: Also on March 24, analysts from CardinalStone Research rated UBA stocks a “BUY,” setting a TP of N46.86. UBA shares closed at N36.90 per share on March 28.

UBA Dividend for FY’24 Totals N5

In line with its commitment to rewarding shareholders, UBA has proposed a final dividend of N3 per share for FY’24. This follows an interim dividend of N2 per share paid in October 2024, bringing the total dividend payout for the year to N5 per share.

The total dividend results in a payout ratio of 26.6 percent, up from 16.32 percent in 2023, with a yield of 13.1 percent (compared to 10.92 percent in 2023). The final dividend is subject to shareholder ratification at the upcoming Annual General Meeting (AGM).

UBA’s stellar FY’24 results and positive analyst outlook suggest a promising future for the bank and its investors, reinforcing its position as one of Africa’s leading financial institutions.