UBA Grows Profit by 6.1%, Declares 25k Interim Dividend
United Bank for Africa (UBA) Plc grew profit by 6.1% in the first half of 2025 amidst tight regulatory situation.The Pan African lender’s profit after tax grew by 6.1% year on year to N335.53 billion from N316.36 billion in the comparable period in 2025.
Due to increase share outstanding, earnings per share (EPS) marginally declined to N8.86 in H1-25 from N8.90, reflecting the dilutive impact of new share issuances.
The Board proposed an interim dividend of N0.25/share, a sharp decline from N2.00/share paid in the comparable period, translating to a dividend yield of 0.5% based on the last closing price of N47.00/share.
Analysts said the high-yield environment and earning assets expansion continued to drive topline growth. In the first half of the year, the bank’s interest income advanced by 32.9% year on year to N1.33 trillion.
Gains were broad-based, with higher earnings from investment securities, loans to customer, loans to banks and cash & bank balances. On the funding side, interest expense surged 70.4% year on year to N560.61 billion, reflecting the increased cost of customer deposits and institutional funding.
Net interest income nonetheless expanded 14.6% year on year to N773.03 billion, supported by a 46.9% decline in credit impairment charges to N31.97 billion.
Non-interest income contracted sharply by 37.0% year on year to N162.34 billion, as the prior year’s sizable FX revaluation gains normalized, down by -87.5% year on year to N40.89 billion.
While investment securities gains which saw +230.6% year on year uptick to N70.76 billion and fee & commission income which jumped by +1.3% year on year to N147.04 billion provided some buffer, these were insufficient to offset FX-related pressures.
Operating expenses rose 9.5% year on year to N514.99 billion, reflecting higher personnel costs, AMCON levy and depreciation.
However, this was partially tempered by lower other operating expenses (-11.0% year on year), driven by a 27.1% year on year decline in fuel, repairs, and maintenance costs.
UBA pretax profit declined by 3.3% year on year to N388.41 billion, although a lower effective tax charge supported the bottom line.
The bank tax charges declined by -37.9% year on year; hence, net income grew 6.1% year on year to N335.53 billion. #UBA Grows Profit by 6.1%, Declares 25k Interim Dividend GTCO Climbs with Significant Block Trade Deals
