United Bank for Africa (UBA) has reported a significant decline in its 2025 financial results, with profit after tax falling by 47.2% to ₦404.7 billion, as the bank adjusts to a more stable but less windfall-driven earnings environment.
The trend has continued into 2026, with UBA’s Q1 2026 results showing profit after tax declining by 22.8% to ₦146.6 billion, despite growth in core income lines.
UBA 2025 financial results: what drove the profit decline
UBA’s 2025 earnings were largely impacted by a sharp drop in non-interest income, which fell by 43.1% compared to the previous year. The decline reflects the absence of one-off gains from foreign exchange and derivative transactions that boosted 2024 performance.
Gross earnings slipped slightly by 3% to ₦3.09 trillion, even as interest income rose by 9.8% to ₦2.65 trillion.
Operating income also declined by 12.1%, while operating expenses increased by 4.7%, putting additional pressure on profitability.
As a result, profit before tax dropped to ₦423.4 billion, while earnings per share declined by more than 55% to ₦9.66.
UBA’s balance sheet strengthens despite lower profit
Despite weaker earnings, UBA’s balance sheet remained strong. Total assets rose by 9.4% to ₦33.17 trillion, supported by an 11.8% increase in customer deposits and a 24.4% rise in shareholders’ funds.
The bank also raised ₦395 billion in fresh capital during the year, strengthening its capital adequacy ratio to 23.2% and enabling it to exit the Central Bank of Nigeria’s forbearance regime.
Loans and advances grew modestly by 1%, reflecting a more cautious lending approach amid macroeconomic adjustments.
Rising costs and impairment charges weigh on performance
UBA’s profitability was further impacted by increased credit risk provisions.
Impairment charges rose significantly to ₦331.1 billion, as the bank strengthened its buffers against potential loan defaults. Its non-performing loan (NPL) ratio increased to 7.67%, although coverage improved to 123.6%, indicating stronger provisioning.
At the same time, the bank’s cost-to-income ratio climbed to 59.4%, reflecting rising operating costs and a more challenging income environment. Net interest margin also declined, pointing to pressure on core profitability.
UBA Q1 2026 results show continued earnings pressure
UBA’s Q1 2026 financial results suggest that the trend is continuing, although with signs of operational resilience. Gross earnings rose by 4.9%, driven by a 6.9% increase in interest income and a 17.3% rise in non-interest income. Operating income grew by 12.2%.
However, operating expenses surged by 29.8%, significantly impacting profitability.
Profit before tax fell by 21.4% to ₦160.7 billion, while profit after tax declined by 22.8% to ₦146.6 billion. Earnings per share dropped by 41.9% to ₦3.11.
Capital strength and risk management remain key focus
UBA continues to prioritise capital strength and risk management as part of its long-term strategy. The bank’s return on equity stood at 13.7% in Q1 2026, while return on assets improved to 1.8%, indicating more efficient use of resources despite lower overall profit.
The cost of risk declined to 2.02%, suggesting improved credit quality and tighter lending controls. The balance sheet remained stable, with total assets at ₦33.1 trillion and loans growing modestly to ₦7.17 trillion.
UBA outlook: cautious growth in a normalising banking environment
UBA’s recent performance reflects a broader shift in Nigeria’s banking sector away from volatility-driven profits toward more stable, risk-adjusted earnings.
The bank is continuing to invest in digital banking, financial inclusion, and its pan-African operations across 20 markets, while maintaining a disciplined approach to capital deployment.
Management has indicated a cautious but optimistic outlook, with a focus on sustaining growth, strengthening earnings quality, and positioning the bank for long-term expansion as economic conditions stabilise.
The bigger picture
UBA’s 2025 and Q1 2026 results highlight a transition period.
Profitability is under pressure, but capital is stronger, risk management is tighter, and the business is becoming more resilient.
For investors and industry watchers, the key question is no longer just growth but how well banks like UBA can balance profitability with stability in a changing economic environment.
