By Ayomide Otitoju
United Bank for Africa Plc (UBA) has reported robust financial results for the first quarter of 2025, posting a profit after tax of ₦189.8 billion, marking a 33% increase from ₦142.6 billion recorded in the corresponding period of 2024.
According to the bank’s Condensed Consolidated Statements of Comprehensive Income for the period ended March 31, 2025, UBA’s interest income rose by 36% year-on-year to ₦599.8 billion, up from ₦440.8 billion in Q1 2024. A significant portion of this increase came from interest on amortised cost and fair value through other comprehensive income (FVOCI) securities, which jumped to ₦597.1 billion from ₦440.4 billion.
Despite a 77% surge in interest expense to ₦247.9 billion (from ₦140.1 billion in Q1 2024), net interest income still improved to ₦351.9 billion, compared to ₦300.7 billion in the previous year.
The bank also recorded gains in fee and commission income, which rose to ₦124.1 billion, up from ₦113.7 billion. With fee and commission expenses remaining relatively flat at ₦52.1 billion, net fee and commission income increased to ₦72 billion from ₦62.2 billion.
Non-interest income saw a notable rise of 44%, reaching ₦112.4 billion from ₦77.9 billion a year ago. This was largely driven by a spike in trading and foreign exchange income, which rose to ₦37 billion from ₦11.9 billion.
UBA’s total operating income for the quarter climbed to ₦464.2 billion, representing a 22.7% increase over the ₦378.6 billion recorded in Q1 2024. However, the bank also reported a higher impairment charge for credit losses, which increased to ₦11.1 billion from ₦1.6 billion.
Operating expenses rose to ₦245.8 billion from ₦218.9 billion, driven by higher staff costs, which increased to ₦84.3 billion from ₦66.3 billion, and a rise in other operating expenses to ₦148.5 billion. Depreciation and amortization costs also increased to ₦12.9 billion from ₦10.1 billion.
Reflecting its earnings strength, UBA’s total assets grew to ₦31.7 trillion as of March 2025, up from ₦30.3 trillion in December 2024. Key drivers included a rise in investment securities, which increased to ₦13.1 trillion from ₦12.5 trillion, although loans and advances to customers slightly declined to ₦6.8 trillion from ₦6.95 trillion.
The bank’s liabilities rose to ₦28 trillion from ₦26.9 trillion, primarily due to a ₦1 trillion increase in customer deposits, which stood at ₦22.9 trillion. Shareholders’ equity also improved, rising to ₦3.7 trillion from ₦3.4 trillion, buoyed by retained earnings of ₦1.6 trillion.
Earnings per share (EPS) for the quarter rose to ₦5.35, up from ₦3.96 in Q1 2024, underscoring the bank’s solid profitability.
Non-controlling interests contributed ₦6.8 billion to the profit, slightly lower than ₦7 billion in Q1 2024. However, total comprehensive income for the period fell to ₦256.5 billion from ₦581.5 billion, due to a drop in fair value changes of financial assets.
UBA’s performance in Q1 reinforces its position as one of Africa’s leading financial institutions, with continued growth across key income streams and a solid balance sheet.
