- The United Bank for Africa lost N1.14 billion to fraud in 2024
- The losses were primarily from electronic fraud and unauthorised transfers
- The bank reported N766.6 billion as post-tax profit and a profit before tax of N803.72 billion for the 2024 financial year
United Bank for Africa (UBA) lost N1.14 billion to fraud in 2024, as N4.9 billion worth of transactions were linked to fraudulent activities with 23 per cent translating into actual losses.
This is according to the bank’s audited financial statement for the year ended December 31, 2024, which noted that the losses were primarily from electronic fraud and unauthorised transfers.
UBA disclosed that electronic fraud cost the bank N805 million, while fraudulent transfers led to losses of N314 million.
UBA’s reports N766.6 billion profit after tax
The bank’s financial statement also showed that it reported a profit after tax (PAT) of N766.6 billion, a 26 per cent increase from the N607.7 billion reported in 2023.
UBA also reported a profit before tax of N803.72 billion for the 2024 financial year, a 6.1 per cent rise from the N757.68 billion recorded in 2023.
The group’s total assets increased by 46.8 per cent to reach N30.4 trillion from N20.65 trillion in 2023.
UBA’s gross earnings soared by 53.6 per cent to N3.19 trillion, compared to N2.08 trillion recorded in 2023. Its total deposits stood at N24.7 trillion in 2024, a 42.03 per cent rise from N17.4 trillion recorded in the previous year.
The Group’s shareholders’ funds rose from N2.030 trillion as of December 2023 to N3.419 trillion as of December 2024, representing a 68.39 per cent increase.
The banking group also proposed a final dividend of N3.00 kobo for every ordinary share of 50 kobo for the financial year ended December 31, 2024, bringing the total dividend in the year to N5.00, subject to ratification at the bank’s upcoming Annual General Meeting (AGM).
UBA reiterates commitment to continued global expansion
UBA’s Group Managing Director/Chief Executive Officer, Oliver Alawuba, in his comments on the group’s result in the 2024 financial year, noted the contribution of its global operations of 51.7 per cent to the group’s revenue.
He stated that the group will continue its global investment to expand its customer base while delivering high-quality earnings.
“Our continued investment in our global network has allowed us to deliver high-quality earnings while expanding our customer base.
“With total deposits increasing by 42.03 per cent from N17.4 trillion in 2023 to N24.7 trillion in 2024, our growth remains broad-based across all core businesses despite macroeconomic challenges.
“Our ex-Nigeria (Rest of Africa & International) operations have expanded significantly over the past five years, now contributing 51.7 per cent of Group revenue, up from 31 per cent in 2019, delivering diversification benefits and further boosting long-term shareholder value.
“This will continue to grow as we further explore strategic markets that align with our overall vision.
“We are currently upgrading our business scope and authorisation in France and considering other viable markets in the short to medium term,” Alawuba stated.
‘UBA maintains a strong financial position’
UBA’s Executive Director, Finance & Risk Management, Ugo Nwaghodoh, noted that the bank maintains a strong financial position.
Nwaghodoh said the bank recorded triple-digit growth in net interest income, resulting in improvement in net interest margin from 6.83 per cent in 2023 to 9.02 per cent, while also recording strong double-digit growth in fee and commission income lines of 91.66 per cent.
He added that as the bank navigates evolving risks, its management remains focused on responsible growth, delivering customer-focused value propositions while ensuring compliance with regulatory requirements in all jurisdictions.
“UBA Group continues to demonstrate strong capital levels, with shareholders’ funds growth of 68.4 per cent to N3.42 trillion and a solid capital adequacy ratio of 31.0 per cent.
“And as we defensibly position the portfolio to navigate prevailing global and regional macroeconomic upheavals, asset quality improved, with the NPL ratio moderating to 5.58 per cent, with strong provision coverage at 81 per cent,” Nwaghodoh noted.
Rising cases of bank fraud
UBA’s loss to fraud, the first from the bank since 2012, comes at a time when financial institutions are battling rising cases of bank fraud.
Recall that in the second quarter (Q2) of 2024, Nigerian banks lost N42.6 billion to fraudulent activities, an 8,993 per cent increase from the N468.4 million recorded in the first quarter (Q1) of 2024, according to the Financial Institutions Training Centre (FITC) Q2 2024 Fraud and Forgeries report.
In the third quarter (Q3) of 2024, FITC also stated that Nigerian banks lost N10.1 billion to fraud, a 76.4 per cent decline from the previous quarter.
FITC noted that outsider involvement in fraud cases surged by 70.4 per cent between Q2 and Q3 2024, while staff-related fraud increased by 54 per cent during the same period.
Recall that the Nigeria Inter-Bank Settlement System (NIBSS) recently revealed that financial institutions in Nigeria lost N52.26 billion to fraud in 2024, which is N34.59 billion more than the N17.67 billion recorded in 2023.
The NIBSS Fraud Report stated that the annual fraud count reported decreased by 31 per cent from 101,624 in 2020 to 70,111 in 2024, however, the amount lost to fraud grew by 350 per cent from N11.61 billion in 2020 to N52.26 billion in 2024.
The NIBSS also disclosed that fraudsters stole approximately N400 million in 2024 through financial accounts opened with stolen identities.
It stated that the identities of senior citizens were stolen and accounts were opened in their names, adding that the estimated N400 million proceeds from fraud were transferred into these accounts and subsequently withdrawn.
The NIBSS also revealed that over N1 billion was moved using two accounts after Bank Verification Numbers (BVNs) were registered for two minors by compromised bank staff.
After France, UBA set to open a Saudi Arabia branch, launch other African subsidiaries
Meanwhile, TheRadar earlier reported that the United Bank for Africa (UBA) Group announced plans to open a branch in Saudi Arabia and launch additional African subsidiaries in 2025.
UBA’s Group Managing Director and Chief Executive Officer, Oliver Alawuba, stated this during a send-forth dinner held in Abuja on Wednesday night in honour of the bank’s retired non-executive directors.
