United Bank for Africa Plc (UBA) posted a profit after tax of N335.53 billion for the half-year ended June 30, 2025, compared with N316.36 billion in the same period of 2024.
The increase came despite a slight decline in pre-tax earnings, with profit before tax recorded at N388.41 billion.
A 38 percent drop in income tax expense to N52.88 billion helped boost net profit, underlining the impact of effective tax management. The result reflects resilience in earnings quality even as certain income lines faced pressure.
UBA’s interest income surged by 33 percent to N1.33 trillion from N1.00 trillion a year earlier. The rise was largely driven by a 34 percent increase in income from amortised cost and FVOCI securities, which contributed N1.29 trillion.
Interest expense also climbed sharply by 70 percent to N560.61 billion, reflecting the repricing of customer deposits and higher funding costs. Still, net interest income expanded to N773.03 billion from N674.62 billion in the prior year, underscoring the bank’s ability to capture margin growth.
Impairment charges on loans and advances dropped to N35.15 billion, compared with N58.56 billion a year earlier. The Group also recorded a net write-back of N3.19 billion on other financial assets, reversing a charge of N1.66 billion last year.
This reduction in provisioning points to improved credit quality and effective risk management across UBA’s loan book. The bank continues to demonstrate discipline in balancing asset growth with prudent impairment policies.
Net fee and commission income inched up to N147.04 billion from N145.10 billion last year, supported by fee and commission earnings of N253.60 billion. Expenses related to fee income rose to N106.56 billion, reflecting higher transaction costs.
However, UBA recorded a net trading and foreign exchange loss of N10.05 billion, compared with a N98.18 billion gain in H1 2024. The reversal highlights the volatility of derivative and FX markets, which weighed on overall earnings momentum.
Total operating expenses rose to N520.43 billion from N472.62 billion, driven by higher employee benefits at N143.89 billion and other operating expenses of N376.54 billion. Nonetheless, expense growth remained below revenue expansion, signaling improved cost efficiency.
Other operating income jumped to N30.79 billion from N18.70 billion, supported by dividend and rental income. This secondary income stream provided some cushion against trading losses.
UBA’s total assets grew to N33.27 trillion in June 2025 from N30.24 trillion at year-end 2024. Customer deposits climbed to N27.60 trillion, while loans and advances expanded to N7.74 trillion, highlighting the bank’s support for credit growth across its markets.
The bank declared an interim dividend of N0.25 per 50 kobo ordinary share, payable to shareholders on the register as of October 3, 2025. The payout underscores management’s commitment to delivering consistent returns even amid earnings volatility.
