United Bank for Africa (UBA) Plc has released its unaudited financial results for the nine months ended September 30, 2025, recording a profit after tax of N537.5 billion, a modest 2.33% increase compared to N525 billion reported in the same period of 2024. The improvement, though relatively small, highlights the bank’s continued resilience amid macroeconomic challenges and shifting market conditions.
UBA’s gross earnings rose 2.96% year-on-year to N2.47 trillion in the period under review, up from N2.398 trillion in 2024. The bank attributed the growth largely to higher interest income, supported by increased lending activities and investment in fixed-income securities.
Key Financial Highlights (9M 2025 vs. 9M 2024)
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Gross Earnings: N2.47 trillion (↑2.9% YoY)
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Net Interest Income: N1.17 trillion (↑6.2% YoY)
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Non-Interest Revenue: N310.1 billion (↓28.8% YoY)
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Operating Profit (Pre-Impairment): N1.42 trillion (↑0.6% YoY)
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Profit Before Tax: N578.6 billion (↓4.12% YoY)
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Profit After Tax: N537.5 billion (↑2.3% YoY)
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Total Assets: N32.49 trillion (↑8% YoY)
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Customer Deposits: N23.80 trillion (↑8.7% YoY)
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Loans and Advances to Customers: N7.20 trillion (↑3.5% YoY)
Interest Income as a Key Driver
Interest income served as the primary growth engine for UBA’s performance. The bank recorded a 10.1% increase in interest income to N1.98 trillion, largely supported by an expanding loan portfolio and gains from investment securities.
A significant portion of this growth came from loans and advances to customers, which rose 3.5% year-on-year to N7.20 trillion. This was driven by both corporate and retail segments, reflecting sustained demand for credit despite rising interest rates and tighter liquidity conditions.
Additionally, the bank’s investment securities portfolio — including amortized cost and fair-value instruments — contributed meaningfully to the earnings boost, as yields on government and corporate securities improved during the period.
However, UBA’s interest expenses increased sharply by 16.27% to N808.72 billion, reflecting higher funding costs due to increased deposit rates and competitive pressures in the Nigerian banking industry. Despite this, the bank maintained a strong net interest margin, with net interest income growing 6.18% to N1.17 trillion.
Decline in Non-Interest Revenue
The bank’s non-interest income declined significantly to N310.1 billion, representing a 28.8% drop from N435.8 billion in the same period of 2024. The sharp fall was attributed primarily to a 77.3% decline in net trading and foreign exchange income, which dropped to N41.4 billion amid market volatility and reduced forex trading opportunities.
Other non-interest income categories also weakened, though the bank recorded a 4.3% rise in fees and commissions, supported by increased customer transactions, digital banking expansion, and higher trade finance revenues. This growth in core fee income provided a partial cushion against the drop in trading gains.
Lower Impairment Charges Support Profitability
One of the bright spots in UBA’s performance was a notable improvement in asset quality. The net impairment charge on loans and receivables fell sharply to N56.89 billion, down 54% from N123.48 billion in 2024. This improvement reflects more effective risk management, tighter credit underwriting standards, and a recovery in previously impaired loans.
After accounting for these impairment adjustments, net interest income after impairment stood at N1.11 trillion, up 2.7% year-on-year. The reduction in credit losses helped sustain profitability despite pressures on non-interest revenue streams.
Strong Balance Sheet Expansion
UBA’s balance sheet continued to strengthen, with total assets rising 8% to N32.49 trillion. The growth was driven by increases in cash and bank balances, investment securities, and loans and advances.
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Cash and bank balances rose from N8.16 trillion in December 2024 to N9.11 trillion, a growth of N951 billion.
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Investment securities increased by 8.5% to N13.59 trillion, benefiting from reinvestment in high-yield assets.
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Loans and advances to customers grew modestly by 3.5%, underscoring UBA’s cautious approach to credit expansion amid economic uncertainties.
On the liabilities side, customer deposits climbed 8.7% to N23.80 trillion, reinforcing customer confidence in the bank’s stability and brand strength. Shareholders’ funds also expanded to N4.30 trillion, up from N3.42 trillion at the end of 2024, supported by retained earnings.
Market Reaction and Outlook
Following the release of the results, UBA’s stock price rose 1.9%, closing at N39.75 per share from a previous N39.00. Year-to-date, the stock has appreciated 16.9%, outperforming many peers in the Nigerian banking sector.
Analysts note that while UBA’s earnings growth remains moderate, the underlying fundamentals are strong. The combination of higher interest income, lower impairment losses, and sustained balance sheet growth positions the bank for continued stability.
However, challenges persist in the form of declining non-interest revenue and rising funding costs. Going forward, UBA is expected to focus on enhancing digital banking efficiency, expanding cross-border operations, and improving cost optimization to maintain its competitive edge.
With its robust financial base and diversified revenue streams across 20 African markets, UBA remains well-positioned to deliver steady performance into the final quarter of 2025 and beyond.
Emmanuel Bassey is a Financial Expert that has worked in the Banking and Finance Industry for over 15+ years across different banks in Nigeria
