United Bank for Africa PLC has released its audited group financial results for the full year ended December 31, 2025, reporting a 47 per cent decline in pre-tax profit to N423 billion compared to the N804 billion in 2024.

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.

Key highlights (2025 vs 2024): Interest income: N2.649 trillion; +9.48 per cent YoY. Interest expenses: N1.031 trillion; +19.97 per cent YoY. Net interest income: N1.618 trillion; +4.24 per cent YoY. Impairment charge: N331.071 billion; +52.59 per cent YoY. Net interest income after impairment: N1.289 trillion; -0.76 per cent YoY. Net fee and commission income: N332.475 billion; -0.25 per cent YoY. Profit after tax: N404.696 billion; -47.21 per cent YoY. Earnings per share: N9.66; -55.55 per cent YoY. Loans and advances to customers: N7.022 trillion; +0.98 per cent YoY. Investment in securities: N14.427 trillion; +15.10 per cent YoY. Customers’ deposit: N23.949 trillion; +11.02 per cent YoY. Total assets: N33.173 trillion; +9.40 per cent YoY. Retained earnings: N1.266 trillion; -11.19 per cent YoY. Shareholders’ funds: N4.253 trillion; +24.40 per cent YoY.

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. Interest income grew by 9.84 per cent to N2.649 trillion, driven largely by income from investment securities, which contributed N1.47 trillion and accounted for about 56 per cent of total interest income. The bank earned over N805 billion (up 18 per cent) from treasury bills and about N653 billion (up 45 per cent) from bonds. From loans and advances to customers, UBA generated about N889 billion, representing about 33 per cent of total interest income. Cash and bank balances gave the bank N185 billion, higher than the N146 billion in 2024. Deposits from customers expanded by N2.38 trillion (up 11 per cent) to N23.949 trillion, accounting for over 71 per cent of the group’s balance sheet.

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. This is significantly higher than the bank’s exposure to loans and advances to customers, which stood at N7.022 trillion, representing a marginal increase of 0.98 per cent compared to 2024. On the cost side, interest expense grew faster than interest income, increasing from N859 billion in 2024 to N1.03 trillion in 2025, representing a rise of about 20 per cent.

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 per cent profit growth in 2025, while East and Central Africa reported a 61 per cent profit growth in 2025. The over 52 per cent 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 per cent to N332.475 billion, and incurred. UBA’s total assets grew to N33.17 trillion, driven by an increase in customer deposits (+11 per cent YoY). Customer deposits at N23.948 trillion now make up over 72 per cent of the bank’s balance sheet size, supporting the bank’s liquidity and ability to fund future growth. The bank’s share capital and premium amount to N504 billion, resulting from Rights Issues. Shareholders’ funds at N4.25 trillion with a capital adequacy of 23.2 per cent.

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 per cent. The stock also gained 17 per cent 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.