UBA Grows Profit by 2.3% to N538bn, Bucks Negative Earnings Trend
The United Bank for Africa (UBA) Plc, a Pan-African bank, defied the downward earnings trend observed among tier-1 banks during the first nine months of the 2025 financial year, achieving a net income growth of 2.3% compared to the previous year.
UBA released the group’s unaudited results for 9M-2025 on the Nigerian Exchange, with profit after tax increasing modestly by 2.3% year on year to N537.53 billion from N525.31 billion in the equivalent period in 2024.
Gross earnings expanded by 3% year on year to N2.468 trillion, according to details extracted from its 9M-2025 unaudited financial statement. Its top line performance was primary driven by significant growth in its core banking income.
UBA reported that the group’s interest income grew 10.1% by year on year to N1.98 trillion, underpinned by higher earnings from investment securities and loans to banks which outweighed declines in cash balances and customer loans.
Interest expense, however, rose by 16.3% year on year to N808.72 billion, primarily due to higher costs on customer deposits and institutional funding.
The group saw a sharp drop in impairment charges and its sustained investment income offset pressures from elevated funding costs and weaker FX income.
The results showed that UBA impairment charges on expected credit losses moderated sharply, down by 44% year on year to N56.89 billion in 9M-2025 period from N123.48 billion in the equivalent period, speaking to healthy asset quality delivered by the pan African lender.
Non-interest income declined 28.9% by year on year to N310.08 billion, weighed by the sharp normalisation of FX-related gains. In the period, FX revaluation and trading income fell by 83.3% and 37.6% year on year, respectively.
Nonetheless, investment securities gains surged by 230.6% year on year to N106.45 billion, providing some offset, while fee and commission income remained stable.
Operating income expanded by 0.6% to N1.424 trillion from N1.415 in the equivalent amidst tight operating environment and regulatory tightening.
The group operating expenses rose by 4.2% year on year to N846.15 billion, driven by higher personnel costs, AMCON levy, and depreciation.
Profit before tax (PBT) dipped by 4.1% year on year to N578.60 billion, but a substantially lower tax charge lifted PAT to N537.53 billion, up 2.3%.
Details showed that the group’s income tax fell by 47.5% year on year to N41.07 billion in the nine months period from N78.17 billion paid in the equivalent period in 2024.
“Looking ahead, we expect UBA’s earnings momentum to remain anchored on robust interest income, moderated credit charges, and continued deposit growth, even as non-funded income normalises further”, Cordros Securities Limited said in a review note. CBN Allots N2.1trn OMO Bills to Investors at Decent Rates
