UBA Sierra Leone Delivers Strong 2023 Financial Performance with Notable Increases in Profit and Assets
In a year marked by global and economic challenges, United Bank for Africa (UBA) Sierra Leone Limited achieved remarkable results for the 2023 financial year. The bank demonstrated exceptional performance across all key financial metrics, underscoring its resilience and strategic growth.
Outstanding Financial Results
Under the adept leadership of Chief Executive Officer (CEO) and Managing Director (MD) Mohamed Alhajie Samoura, UBA Sierra Leone posted an impressive Profit Before Tax (PBT) of Le487.8 million and a Profit After Tax (PAT) of Le271 million. This represents a significant year-on-year growth of 79.9%, reflecting the bank’s robust operational and financial strategies. The strong profit performance translated to an average return on equity (RoE) of 73%, a notable increase from 52.2% in the previous year.
The bank’s capital adequacy ratio also saw an improvement, reaching 85.4% compared to 82.9% in 2022. This figure is well above the regulatory minimum of 15%, highlighting UBA Sierra Leone’s solid capital buffer and its capability to support further growth and financial inclusion initiatives across Africa.
Increased Tax Contribution
UBA Sierra Leone’s commitment to corporate social responsibility is evident in its increased tax payments to the government. The bank’s corporate tax responsibility surged to Le122 million in 2023, up from Le67.9 million in 2022. This significant contribution supports the government’s revenue efforts and underscores UBA’s role in national development.
Growth and Efficiency
Despite a 42.4% increase in operating expenses due to expansion, inflation, and personnel satisfaction efforts, UBA Sierra Leone improved its cost-to-income ratio from 20.8% in 2022 to 23.6% in 2023. This improvement is attributed to increased revenue and a focus on cost management, as the bank continues to enhance its efficiency through digitalization and process improvements.
Revenue and Income
The bank achieved a 68% increase in gross earnings, reaching Le721 million, up from Le427 million in 2022. Net interest income saw a 68.2% rise, totaling Le469.3 million compared to Le278.9 million in the previous year. Non-interest income grew by 72.5%, driven by a strategic focus on transaction banking channels, digital banking products, trade services, and foreign exchange offerings.
Loan Portfolio and Asset Growth
UBA Sierra Leone expanded its loan portfolio significantly, with a remarkable 80% increase to Le465.2 million, compared to Le258.1 million in 2022. The bank’s non-performing loan ratio stood at 1.64%, reflecting effective risk management and a commitment to supporting its customers’ businesses.
The balance sheet of UBA Sierra Leone experienced a 38% growth, reaching Le4.11 billion, up from Le2.97 billion in 2022. Customer deposits also saw a substantial increase of 37.5%, rising to Le2.86 billion. Shareholders’ funds grew by 27% to Le559.5 million, further strengthening the bank’s financial position.
CEO’s Statement
Concluding the financial year, CEO/MD Mohamed Alhajie Samoura remarked, “This remarkable financial performance in 2023 further consolidates our position as a leading and dominant financial services provider in Sierra Leone. It aligns with the vision and strategic objectives 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.”
Future Outlook
Looking ahead, UBA Sierra Leone plans to sustain its growth trajectory through further digitalization, process improvements, and leveraging its strong capital base. The bank remains committed to enhancing financial inclusion and delivering exceptional value to its customers and stakeholders.
