United Bank for Africa Plc (UBA) reported profit after tax of N189.84 billion in the first quarter (Q1) of 2025, up from N142.58 billion filed in the same period of 2024.
The Group’s performance showed improved core banking operations, sustained margin growth and strong non-interest income generation.
According to the unaudited condensed consolidated statements released by the bank, interest income rose to N599.83 billion, a 36 percent increase from N440.76 billion in Q1 2024. Of this, N597.06 billion was earned from amortised cost and FVOCI securities while N2.78 billion was derived from FVTPL securities.
Despite a sharp rise in interest expense to N247.96 billion (Q1 2024: N140.09 billion), UBA delivered a robust net interest income of N351.88 billion, up from N300.68 billion in the previous year.
Net fee and commission income rose to N71.96 billion, up from N62.17 billion in Q1 2024. The bank earned N124.07 billion in fees and commissions while incurring N52.12 billion in related expenses.
Non-interest income grew to N112.36 billion from N77.91 billion in the period under review. This was driven by a rise in net trading and foreign exchange income which rose to N37.04 billion when compared to N11.90 billion recorded a year earlier.
Other operating income was reported at N3.37 billion, down slightly from N3.84 billion.
UBA’s total operating income stood at N464.24 billion, a 23 percent increase year-on-year while impairment charges on loans and financial assets amounted to N14.18 billion, more than N3.28 billion filed in Q1 2024.
After impairment deductions, net operating income was N450.06 billion, compared to N375.31 billion in the previous year.
The Group continued to maintain cost discipline with total operating expenses rising moderately to N245.79 billion, from N218.97 billion in Q1 2024.
This includes employee benefit expenses of N84.32 billion, depreciation and amortisation of N12.93 billion, and other operating expenses of N148.55 billion.
Profit before tax for the period was N204.27 billion, up from N156.34 billion in the same quarter of 2024. After a tax charge of N14.42 billion, the bank posted a profit of N189.84 billion.
Comprehensive Income
UBA recorded a total comprehensive income of N256.45 billion for the period, although lower than N581.47 billion posted in Q1 2024.
The decline reflects reduced net fair value gains and mark-to-market adjustments on investment securities. Other comprehensive income, including items that will and will not be reclassified to the income statement, was N66.61 billion.
Earnings per share stood at N5.35, up from N3.96 in Q1 2024.
Outlook
UBA Plc’s Q1 2025 performance highlights the bank’s strategic focus on growing interest income, strengthening fee-based revenue and maintaining operational efficiency.
The Group remains well-capitalised and continues to expand its footprint across Africa and globally, positioning it to sustain profitability through the rest of the year.
Investors are likely to view the Group’s ability to grow both interest and non-interest income despite rising costs and impairments as a positive signal of resilience and scale efficiency.
