Despite global and economic challenges, the 2023 Financial Year was great for the United Bank For Africa Sierra Leone Limited – UBA –SL.
The Pan-African bank posted outstanding performance records for the 2023 financial year demonstrating significant improvements across all indices.
Based on UBA’s remarkable across the board performance, on 28th March this year the central Bank of Sierra Leone (BSL) gave UBA-SL’s management the red light, receiving a “No Objection” approval to publish its audited financial statement for the year ended 2023.
Under the able leadership of the Chief Executive Officer (CEO) / Managing Director (MD) Mohamed Alhajie Samoura the dedicated UBA Sierra Leone team posted notable Profit Before Tax (PBT) of Le487.8 million and Profit After Tax (PAT) of Le271 million, a growth of 79.9 per cent year on year. The improved profit performance led to an average return on equity of 73 per cent, up 20.8 per cent from the previous year’s average of 52.2 per cent.
The Bank maintained a capital adequacy ratio of 85.4 per cent, up 2.5 per cent from the 2022 posting of 82.9 per cent, well above the regulatory minimum of 15 per cent resulting to UBA remaining well-positioned to drive financial inclusion in Africa through its innovative and extensive network making great use of its strong capital buffer and internally generated earnings. Making its contribution to government’s tax collecting effort, UBA’s corporate tax responsibility to the government of Sierra Leone increased to Le122 million, from Le67.9 million in 2022.
Meanwhile UBA Sierra Leone experienced a 42.4 per cent increase in operating expenses in 2023 due to growth in the bank’s business operations, general inflationary trends, and its commitment to maintaining personnel satisfaction. Driven by an increase in revenue, the bank performed better in its cost-to-income ratio from 20.8 per cent in 2022 to 23.6 per cent in 2023. UBA Sierra Leone hopes to maintain this improvement through increased digitalisation of products, services, and other process improvement initiatives.
2023 remains a great year for UBA Sierra Leone as the bank witnessed substantial increase of 68 per cent on its gross earnings leading to a 68.2 per cent year on year rise in net interest income (from Le278.9 million to Le469.3 million). Non-interest income grew by 72.5 per cent after the bank capitalised on transaction banking channels, digital banking products, trade, and foreign exchange offerings, hoping to make maximum use of its alternative channels for sustained growth in non-interest income and gross earnings in the medium term.
UBA Sierra Leone made salient improvement in the area of risk assets by increasing its loan portfolio by 80 per cent in 2023 to reach Le465.2 million, compared to Le258.1 million in 2022, ending with a non-performing loan ratio of 1.64 per cent, which growth enabled the bank to continue supporting its customers and their businesses.
The United Bank for Africa – UBA Sierra Leone concluded the 2023 Financial Year with a balance sheet size of Le4.11 billion (which is a 38 per cent growth on the 2022 posting of Le2.97 billion), driven by increased customer deposits, which grew by 37.5 per cent to Le2.86 billion by the end of 2023 as the bank made good use of its digital capabilities by providing round the clock service through electronic channels.
SUMMARY / HIGHLIGHTS
Income Statement
*68 per cent year on year (YoY) Growth in Gross Earning to Le721 million from Le427 million in 2022.
*79.9 per cent YoY Growth in Profit Before Tax and Profit After Tax to Le487.8 million and Le365.6 million from Le271 million and Le203 million respectively in 2022.
*Improved Cost-to-Income Ratio of 23.6 per cent compared to 28.0 per cent in 2022FY.
*Return on Average Equity (RoAE): 73.1 per cent composed to 52.2 per cent in 2022FY.
*Increased Corporate Income Tax payment obligation of Le122 million in 2023 from Le67.9 million in 2022.
Balance sheet
*38 per cent YoY Growth in Total Assets to Le4.11 billion from Le2.97 billion in 2022.
*80 per cent YoY Growth in Net Loans to Le465.2 million from Le258.1 million.
*37.5 per cent YoY Growth in Customer Deposits to Le2.86 billion from Le2.08 billion in 2022.
*27 per cent YoY Growth in Shareholders’ Funds to Le559.5 million from Le439.9 million in 2022.
Concluding, the UBA Sierra Leone CEO / MD, Mohamed Alhajie Samoura said: “This remarkable financial performance in 2023 further consolidates our position as a leading and dominant financial services provider in Sierra Leone. It also aligns with the vision and strategic objective of UBA Group to be the market leader in all countries we operate in.”
“UBA Sierra Leone remains well positioned to continue driving financial inclusion through innovative products, excellent customer service delivery and our extensive global network.”
By FORUM NEWS Business Editor
