According to its 2024 financial year report, United Bank for Africa (UBA) generated N284.7 billion from electronic business transactions.
Electronic transaction fees include earnings from ATM withdrawals, card transactions, interbank transfers, online and mobile banking services, SMS/email alerts, and merchant payments.
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85.9% surge in e-transaction revenue
Compared to the N157.1 billion the bank recorded in 2023, this indicates an 85.9 percent increase in its e-transaction revenue.
These figures were disclosed in the bank’s audited financial statement for the year that ended on December 31, 2024.
The breakdown of the 2024 e-transaction revenue is N236.3 billion from electronic banking income and N48.4 billion from funds transfer fees, up from N125.6 billion and N31.5 billion, respectively, in 2023.
In 2024, the bank spent N199.2 billion on electronic transactions, an increase from N107.1 billion in 2023.
Remittance revenue increases by 158%
In 2024, United Bank for Africa saw a 158 per cent increase in remittance fee revenue.
Banks charge remittance fees when handling cross-border money transfers, such as when businesses send money abroad or when Nigerians living abroad send money home.
Remittance fees for the top-tier lender brought in N39.91 billion, a significant increase over N15.45 billion in 2023.
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UBA’s pre-tax profit surges to ₦803.7 billion by 6%
In 2024, UBA reported a pre-tax profit of N803.7 billion, up 6 per cent from 2023’s N757.6 billion. The bank’s post-tax profit reached N766.5 billion, the highest level in its history, a 26.14 per cent increase.
The bank proposed a final dividend of N3.00 per share as part of its earnings announcement, increasing its total dividend payout from 2024 profits to over N170 billion.
Strong loan earnings and N1.1 trillion from investment securities, such as treasury bills, were the main drivers of the N1.5 trillion net interest income. Although it also caused cautious borrowing behaviour, Nigeria’s high interest rate environment helped to boost returns on government securities.
Due to increased funding costs, interest expenses nearly tripled, increasing by 128.18 per cent year over year to N839.2 billion.
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