United Bank for Africa PLC has released its audited group financial results for the full year ended December 31, 2025, reporting a 47% decline in pre-tax profit to N423 billion compared to the N804 billion in 2024.
- +UBA’s 2025 profit declines to N423 billion, on loan loss provisions
The decline in profit was driven by material loan provision of N331 billion and N278 billion net fair value loss on derivatives.
The decline in profit was driven by material loan provision of N331 billion and N278 billion net fair value loss on derivatives.
However, core earnings remained strong, with interest income and net interest income after impairment still above the N1 trillion mark
UBA’s overall bottom-line performance was driven by a combination of factors. At the top level, gross earnings stood at N3.09 trillion, driven by strong interest income and non-interest income
The composition of the interest income appears to mirror the investment outlet. UBA increased its holding in securities (treasury bills and bonds) to N14.427 trillion compared to N12.535 trillion in 2024
UBA’s strong foreign operations continued to deliver impressive returns with a combined profit of N312 billion, up from N223 billion. The West Africa business reported a 53% profit growth in 2025, while East and Central Africa reported a 61% profit growth in 2025
The over 52% growth in impairment loss reaching N331 billion contributed to the drop in net interest income after impairment to N1.289 trillion in 2025. Nigerian banks recorded significant loan loss provisions on the back of the expiration of the CBN Forbearance Program.
The bank also incurred fair value changes on derivatives of N227 billion triggered by exchange rate losses.
However, it is important to note that these are non-recurring and, as such, are not expected to diminish future earnings.
The bank also explained that its recovery team has been strengthened and is aggressively pursuing the recovery of the affected facilities, with all recoveries expected to flow directly through the profit and loss statement in FY2026 and beyond.
Net fees and commission income declined marginally by 0.25% to N332. 475 billion, and incurred
UBA’s total assets grew to N33.17 trillion, driven by an increase in customer deposits (+11% YoY).
UBA began the year with a share price of N41.65 and closed at N55 on April 24, 2024, representing a year-to-date return of 32.1%.
The stock also gained 17% over the past four-week period.
The Directors did not propose a final dividend for 2025 (2024: N3.00 per share), choosing the path of prudence as it focuses on growing profits in 2026.
Following the interim dividend already paid, the total dividend for the year stood at N0.25 per share, compared to N5.00 per share in 2024.
