UBA positions for optimal growth with N33.2tr balance sheet

 These changes which are largely non-recurrent in nature, weighed on profitability but are not expected to recur at similar magnitudes in future periods.

 Despite this, the group maintained strong underlying performance, with operating profit exceeding N1 trillion before these exceptional items, highlighting the resilience of its core banking operations.

 Operating in 20 African countries and in the United States, United Kingdom, France and United Arab Emirates, the group’s Pan-African operations continue to be a major growth driver, contributing over 50 per cent of total assets, revenue, and profit.

 The first quarter report for the three-month period ended March 31, 2026 also showed resilient operating performance and continued balance sheet strength despite a moderated profitability environment.

 Gross earnings increased to N801.5 billion, driven by growth across key revenue lines. Interest income had risen to N641.1 billion, while non-interest income had grown by 17.3 per cent to N137.1 billion, highlighting the group’s expanding and diversified revenue base. Net interest income advanced 10.5 per cent to N383.7 billion, supporting a 12.2 per cent increase in operating income to N520.8 billion, demonstrating sustained momentum across core banking operations.

 The first quarter 2026 report also showed that UBA recorded notable improvement in key profitability and efficiency metrics, reflecting a more sustainable earnings profile. While return on average equity rose to 13.7 per cent, return on assets improved to 1.77 per cent, signalling stronger earnings efficiency. Cost of risk declined significantly to 2.02 per cent, underscoring improved asset quality and disciplined risk management. Cost of funds moderated to 3.73 per cent from 3.83 per cent in Dec 2025, reflecting improvement in funding cost.

 Profit before tax moderated to N160.7 billion while profit after tax moderated to N146.6 billion, representing declines of 21.4 per cent and 22.8 per cent respectively, consistent with the group’s guidance on earnings normalisation. The bank also did well in maintaining a strong and resilient balance sheet with total assets of N33.1 trillion and customer deposits of N26.2 trillion.

Group Managing Director, United Bank for Africa (UBA) Plc, Oliver Alawuba, said the bank’s full year performance underlined that the group has continued to demonstrate the true strength of its Pan-African diversified model, despite the moderation in bottom-line performance compared to the prior year’s highs, as core business engines, especially in the subsidiaries outside Nigeria delivered double-digit growth.

He said: “The 2025 financial year was defined by UBA’s proactive approach to the Central Bank of Nigeria’s (CBN) new recapitalization requirements. The group successfully concluded capital raising programme, which was oversubscribed, reflecting strong investor confidence in UBA’s long-term growth strategy. A total of N395 billion additional capital was raised, enhancing our capacity to support our footprints, and expanding lending to key sectors.

“We have also made significant investments in innovation, technology and resources to drive our payment and digital offerings; this will help scale digital-led income streams across our markets”.

 He said the group has been well positioned to accelerate growth during the new business year, with plans to strategically expand its risk asset base across key sectors as macroeconomic conditions improve.

“With expectations of over N1 trillion in additional growth in the near term, the group remains committed to driving sustainable earnings, deepening financial inclusion, and delivering superior value to shareholders across all its markets,” Alawuba said.

Executive Director, Finance & Risk Management, United Bank for Africa (UBA), Ugo Nwaghodoh, said the 2025 financial year marked a deliberate strengthening of the balance sheet and a shift toward more sustainable, higher-quality earnings in a normalizing macroeconomic environment.

He said: “We believe that proactively recognizing potential credit losses positions us well to navigate uncertainties and support sustainable performance in future periods. The reversal of prior-year derivative gains and foreign exchange-related losses of N282.5 billion drove a decline in non-interest income; these will not recur in this magnitude and should result in future earnings upside”.

According to him, despite the impact of these changes on profitability, the bank’s core business fundamentals as well as its capital and liquidity positions remain strong, with shareholders’ funds now at N4.25trillion and capital adequacy ratio at 23.2 per cent, having exited the CBN forbearance regime in 2025.

“With deliberate steps we have taken to reposition our Nigerian operations, we are well placed to cautiously drive risk asset growth in line with improving macroeconomic conditions. The bank is also intensifying recovery efforts on the provisioned loans, creating a clear pathway for earnings upside,” Nwaghodoh said.

Alawuba added that the group’s first quarter 2026 results underscored the strength of its diversified Pan-African model and the resilience of its core banking franchises.

“While profitability has moderated in line with our expectations for a transition year, we are seeing strong underlying momentum across our markets, supported by improved earnings quality and disciplined risk management.

 “Our continued investments in digital capabilities and regional expansion are enhancing revenue resilience and positioning the Group for sustainable long-term growth. We remain firmly committed to driving financial inclusion, enabling intra-African trade, and delivering superior value to our stakeholders,” Alawuba said.

Nwaghodoh added that the group’s first quarter 2026 performance reflected a deliberate shift towards a more sustainable and scalable earnings profile following successful recapitalisation.

He said: “Key profitability indicators, including return on equity and return on assets, show improvement on a year-to-date basis, despite the normalisation of headline earnings. Our balance sheet remains robust, supported by a diversified funding base and disciplined loan growth. With stable funding costs and improving asset quality, we are well positioned to drive operating leverage and long-term value creation”.

He said the group expects 2026 to remain a transition year characterised by continued investment in digital transformation and operational scalability; strengthened risk management and provisioning frameworks; enhanced focus on high-quality, sustainable earnings and deeper penetration across African markets.

He assu4ed that the group remains strongly capitalised, highly liquid, and strategically positioned to execute its long-term growth agenda.