United Bank for Africa (UBA) has reported a pre-tax profit of N388.4 billion for the first half of 2025, reflecting a 3.28% year-on-year decline from N401.5 billion in the same period of 2024. Despite this dip, the bank delivered strong earnings powered by robust interest income growth.
According to the 9am News report, UBA’s interest income surged 32.89% to N1.3 trillion, up from N1 trillion last year. Treasury bills contributed N366.4 billion, term loans to corporates generated N319 billion, while bonds under investment securities added N279.2 billion. Additionally, cash and bank balances provided N113.2 billion, and loans & advances to banks delivered N105.6 billion.
However, rising funding costs took a toll on margins. Interest expenses spiked to N560.6 billion compared to N328.9 billion in H1 2024. Even so, the group’s net interest income climbed 14.59% to N773 billion. After an impairment charge of N35.1 billion, net interest income settled at N741 billion, a 20.61% increase from the prior year.
UBA also grew its fee and commission income modestly, recording N147 billion, up 1.34% from N145 billion in 2024. But the bank faced headwinds from operating expenses and trading activities. Employee benefit expenses jumped 28.65% to N172.2 billion, while other operating costs inched up 0.19% to N312.9 billion. Notably, net trading and FX activities swung from a N98.1 billion gain last year to a N10 billion loss in the period under review.
Despite these pressures, post-tax profit improved by 6.06% to N335.5 billion, aided by lower income taxes, which fell sharply from N85.2 billion to N52.8 billion.
On the balance sheet, UBA strengthened its financial position. Total assets grew to N33.2 trillion, compared with N30.3 trillion in H1 2024, while retained earnings rose 12.85% to N1.6 trillion.
The directors have proposed an interim dividend of 25 kobo per share, significantly lower than the N2.00 per share declared in the same period last year. This reflects a payout ratio of 7.83% and a dividend yield of 1.4%, compared with 7.3% and 8.9% respectively in 2024.
As of the close of trading on September 18, 2025, UBA’s shares stood at N47.00 on the Nigerian Stock Market, representing a 38.33% year-to-date gain.
Key Highlights (H1 2025 vs H1 2024)
- Interest income: N1.3 trillion, +32.89% YoY
- Net interest income: N773 billion, +14.59% YoY
- Net interest income after impairment: N741 billion, +20.61% YoY
- Net fee and commission income: N147 billion, +1.34% YoY
- Other operating expenses: N312.9 billion, +0.19% YoY
- Pre-tax profit: N388.4 billion, -3.28% YoY
- Retained earnings: N1.6 trillion, +12.85% YoY
UBA’s resilience underscores the strength of its diversified income streams, though cost pressures and weaker trading performance remain areas to watch for the rest of the year.
