United Bank for Africa (UBA) Plc has reported strong first-quarter 2026 performance, with solid growth in earnings.
According to its unaudited results for the three months ended March 31, 2026, released on Friday, April 24, gross earnings rose by 4.9 per cent to N801.5 billion, up from N764.3 billion recorded in the same period of 2025.
Interest income also increased by 6.9 per cent to N641.1 billion, while net interest income climbed 10.5 per cent to N383.7 billion.
The bank’s non-interest income showed a stronger performance, growing by 17.3 per cent to N137.1 billion, helping to push total operating income up by 12.2 per cent to N520.8 billion.
However, rising costs weighed heavily on overall profitability. Operating expenses surged by 29.8 per cent to N319.0 billion, significantly outpacing revenue growth. As a result, profit before tax dropped by 21.4 per cent to N160.7 billion, while profit after tax declined by 22.8 per cent to N146.6 billion.
Earnings per share also fell sharply by 41.9 per cent to N3.11, reflecting the weaker bottom line.
On the balance sheet, total assets remained largely stable at N33.13 trillion, while customer deposits declined by 3.7 per cent to N26.21 trillion. Loans and advances to customers grew modestly by 2.1 per cent to N7.17 trillion, and shareholders’ funds increased by 1.4 per cent to N4.31 trillion.
Despite the drop in profit, key performance indicators showed some improvements. Return on average equity rose to 13.7 per cent from 10.55 per cent, while return on assets improved to 1.77 per cent from 1.27 per cent. The cost of risk declined significantly by 36.5 per cent, indicating better credit quality.
However, efficiency metrics weakened, with the cost-to-income ratio rising to 61.2 per cent from 59.4 per cent, while net interest margin fell by 11.1 per cent to 6.49 per cent.
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Commenting on the results, the Group Managing Director, Oliver Alawuba, said: “UBA’s Q1 2026 reflects the continued strength of our Pan-African diversified model and the benefits of our strong franchise in the markets we operate in.
“The Group delivered profit before tax of N160.7 billion, with improved operating momentum across our core banking franchises and sustained balance sheet resilience. Post tax return on equity stood at 13.7%, while return on assets was 1.8%, reflecting a more normalised post-recapitalisation earnings environment, as previously guided.
“Customer confidence remains strong, with stable deposit growth and continued balance sheet expansion supporting our operations across 20 African markets and beyond. While profitability has moderated relative to the prior year, this remains consistent with our expectation of a transition year marked by disciplined provisioning, strategic investments, and higher-quality earnings formation.
“We continue to see encouraging progress from our digital investments and regional diversification strategy, which are strengthening revenue resilience and positioning the Group for more sustainable growth. As outlined in 2025, our focus remains firmly on financial inclusion, intra-African trade facilitation, and delivering long-term value through a balanced approach to growth and risk management.”
Also commenting on the results, the Executive Director, Finance and Risk Management, Ugo Nwaghodoh, said: “The Q1 2026 performance remains consistent with the strategic direction outlined at the end of 2025, reflecting continued strengthening of the Group’s balance sheet and earnings quality following the successful recapitalisation.
“Profitability metrics reflect a normalising earnings environment and strategic positioning for long-term scalability, with return on equity at 13.7% versus 10.55% in December 2025 and return on assets at 1.8% vs 1.3% in December 2025, reflecting ongoing investments to support future growth and operating leverage.”
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