As a result of the resilience of United Bank for Africa Plc’s diversified business model as well as the disciplined execution of its strategy, the financial powerhouse has recorded an impressive growth in its profit for the first quarter of 2025, recording a profit after tax of N189.8bn. This represents a rise from the N142.6bn reported in the same period last year.
In its Condensed Consolidated Statements of Comprehensive Income for the three months ended 31 March 2025, UBA reported a 36 per cent rise in interest income, which climbed to N599.8bn from N440.8bn in the first quarter of 2024.
Interest income on amortised cost and fair value through other comprehensive income securities contributed a major part of this increase, with a boost of N597.1bn from N440.4bn in the previous year.
In the period under review, the bank’s interest expense surged to N247.9bn from N140.1bn, resulting in a net interest income of N351.9bn, an increase from N300.7bn in the first quarter of 2024.
Fees and commission income also saw an increase, with UBA reporting N124.1bn in Q1 2025, compared to N113.7bn in Q1 2024, while fees and commission expenses remained largely stable at N52.1bn in 2025 from N51.5bn in 2024. This led to a net fee and commission income of N72bn, up from N62.2bn in the previous year.
Non-interest income rose by 44 per cent from N77.9bn in Q1 2024 to N112.4bn in the current quarter, driven by strong growth in net trading and foreign exchange income, which reached N37bn from N11.9bn in 2024.
The bank’s operating income rose to N464.2bn, a 22.7 per cent increase from N378.6bn in the same period last year. This performance was also supported by a reduction in the impairment charge for credit losses, which increased to N11.1bn from N1.6bn in 2024.
Operating expenses surged, with UBA incurring N245.8bn in total operating expenses, compared to N218.9bn in the first quarter of 2024. The most significant increases came from employee benefit expenses, which jumped to N84.3bn from N66.3bn, and other operating expenses, which rose to N148.5bn from N142.6bn. Depreciation and amortization expenses also rose to N12.9bn from N10.1bn.
The bank’s total assets increased to N31.7tn in March 2025, compared to N30.3tn as of December 2024. Key contributors to the growth in assets were an increase in loans and advances to customers, which stood at N6.8tn, slightly down from N6.95tn in December 2024, and the growth in investment securities, which reached N13.1tn, a significant rise from N12.5tn recorded as of December 2024.
Commenting on the results, UBA’s group managing director, Oliver Alawuba, in a statement said the bank is on a solid start for the 2025 financial year which, according to him, reflects its disciplined execution of its strategy and the sustained momentum of the business model of driving strong earnings growth, maintaining robust asset quality, and expanding market share.
“Our results this quarter underscore the effectiveness of our focus on core banking operations, prudent risk management, and ongoing investments in customer-centric innovation.
“These strong results were achieved in the face of persistent macroeconomic headwinds, geopolitical risks and global trade uncertainties,” he stated.
He noted that UBA remains focused on disciplined growth and continued investment in technology, data, innovation, and talent in ensuring that customer experience is consistently enhanced to create long-term value for all stakeholders.
Also speaking on the performance, UBA’s executive director, Finance and Risk Management, Ugo Nwaghodoh, explained that the Q1 2025 results reflects the resilience of the bank’s diversified business model as well as the disciplined execution of its strategy.
“We maintained strong cost discipline, keeping operating expense growth below the average inflation rate. This enabled operating income growth to outpace expenses, contributing to positive operating leverage and strong bottom-line growth,” he said.
