United Bank for Africa (UBA) Plc has kicked off 2025 on a strong note, posting a profit after tax of N189.8 billion for the first quarter, marking a 33% increase compared to N142.6 billion in the same period last year.
According to the bank’s unaudited financial statements for the three months ended March 31, 2025, UBA’s interest income surged by 36% year-on-year, reaching N599.8 billion from N440.8 billion recorded in Q1 2024. This growth was largely driven by gains from securities measured at amortised cost and fair value through other comprehensive income, which contributed N597.1 billion.
Despite an increase in interest expense to N247.9 billion from N140.1 billion in the same period last year, net interest income rose to N351.9 billion from N300.7 billion, reflecting continued strength in UBA’s core lending operations.
Non-Interest Income and Operating Performance
UBA also recorded growth in its non-interest income, which jumped by 44% to N112.4 billion from N77.9 billion in Q1 2024. This was supported by a significant rise in trading and foreign exchange income, which climbed to N37 billion from N11.9 billion in the previous year.
Fee and commission income rose to N124.1 billion, up from N113.7 billion, while related expenses remained stable, leading to a net fee and commission income of N72 billion, compared to N62.2 billion in Q1 2024.
The bank’s total operating income reached N464.2 billion, a 22.7% increase year-on-year, reflecting improved revenue generation across multiple segments. However, impairment charges for credit losses rose to N11.1 billion from N1.6 billion, showing a more conservative risk approach.
Expenses and Balance Sheet Highlights
Total operating expenses grew to N245.8 billion from N218.9 billion. The rise was primarily attributed to higher personnel costs, which increased to N84.3 billion, and other operating expenses, which stood at N148.5 billion. Depreciation and amortization expenses also increased to N12.9 billion.
Despite the rise in costs, UBA’s total assets expanded to N31.7 trillion as of March 2025, up from N30.3 trillion in December 2024. This growth was fueled by higher investment securities, which rose to N13.1 trillion, while loans and advances slightly dipped to N6.8 trillion.
Total customer deposits increased to N22.9 trillion from N21.9 trillion, boosting the bank’s liabilities to N28.0 trillion. Shareholders’ equity also grew to N3.7 trillion, supported by retained earnings of N1.6 trillion.
Earnings and Outlook
Earnings per share rose to N5.35, compared to N3.96 in Q1 2024, reinforcing UBA’s strong profitability and efficient capital utilization. The bank also reported N6.8 billion in profits attributable to non-controlling interests, slightly down from N7 billion a year earlier.
While the total comprehensive income dropped to N256.5 billion from N581.5 billion, largely due to fair value adjustments, the bank remains on solid footing. In 2024, UBA had reported a full-year pre-tax profit of N803.73 billion, driven by solid fundamentals and operational efficiency.
As Nigeria’s financial sector navigates a challenging macroeconomic environment, UBA’s first-quarter performance highlights its resilience, prudent risk management, and focus on delivering shareholder value.
