United Bank for Africa (UBA) generated a total of N284.7 billion from electronic business transactions in full-year 2024.
Electronic transaction fees include earnings from ATM withdrawals, card transactions, online and mobile banking services, interbank transfers, SMS/email alerts, and merchant payments.
This represents an 85.9% growth in its e-transaction revenue when compared with the N157.1 billion recorded by the bank in 2023.
The figures were disclosed in the bank’s audited financial statement for the year ended December 31, 2024.
Breakdown of the e-transaction revenue
- Electronic banking income (2024): N236.3 billion
- Funds transfer fee (2024): N48.4 billion
Revenue generated in 2023
- Electronic banking income (2023): N125.6 billion
- Funds transfer fee (2023): N31.5 billion
The bank’s electronic transaction expenses amounted to N199.2 billion in 2024, up from N107.1 billion in 2023.
Remittance revenue rises by 158%
United Bank for Africa recorded a 158% surge in remittance fee income in 2024.
A remittance fee is a charge banks apply for processing cross-border money transfers, such as when Nigerians abroad send money home or businesses move funds internationally.
The top-tier lender generated N39.91 billion in remittance fees, a sharp rise from N15.45 billion in 2023.
In comparison, Zenith Bank recorded N13.48 billion in foreign currency transaction fees in 2024, according to Nairametrics report.
What you should know
UBA reported a pre-tax profit of N803.7 billion in 2024, marking a 6% increase from N757.6 billion in 2023.
- Post-tax profit surged by 26.14% to N766.5 billion, the highest in the bank’s history. As part of its earnings announcement, the bank proposed a final dividend of N3.00 per share, bringing its total dividend payout from 2024 profits to over N170 billion.
- Net interest income stood at N1.5 trillion, driven by strong earnings from loans and N1.1 trillion from investment securities, including treasury bills. The high-interest rate environment in Nigeria contributed to increased returns on government securities, although it also led to cautious borrowing behavior.
Interest expenses nearly tripled, rising by 128.18% year-on-year to N839.2 billion due to higher funding costs.
