United Bank for Africa Plc (UBA) has released its unaudited financial results for the first quarter ended March 31, 2025, posting a robust pre-tax profit of N204.27 billion, representing a 30.65% year-on-year growth from Q1 2024.
Net profit also saw a strong performance, with profit after tax rising 33.15% to N189.84 billion, compared to N142.58 billion recorded in the same period last year.
The report highlights that interest income remained a significant driver of growth, hitting N599.83 billion, a 36.09% increase YoY.
Key highlights Q1 2025 vs. Q1 2024:
- Interest Income: N599.834 billion +36.09% YoY
- Interest Expense; N247.957 billion +77.00% YoY
- Net interest income; N351.877 billion +17.03% YoY
- Net fee and commission income: N71.955 billion +15.74% YoY.
- Net trading and foreign exchange income: N37.035 billion +211.19% YoY
- Total non-interest income: N112.359 billion +44.21% YoY
- Earnings per share N5.35 +35.10% YoY
- Loans and advances to customers N6.827 trillion -1.83%.
- Cash and Cash equivalents N9.542 trillion +16.89%
- Total Assets N31.713 trillion +4.58%.
- Customers’ deposits N22.864 trillion +4.43%.
Cursory analysis:
UBA’s Q1 2025 results highlight its robust core banking operations. Interest income remained the dominant driver, accounting for the bulk of earnings:
- Income from loans and advances to customers and financial institutions stood at N260.56 billion, a 31% YoY increase, contributing 43.44% of total interest income.
- Income from investment securities rose 44.96% to N291.860 billion, making up 48.66% of interest income.
- Income from cash balances was N47.42 billion, up 17%, contributing 7.90%.
However, the bank also witnessed a sharp increase in interest expenses, which surged by 77% year-on-year to N247.96 billion, primarily driven by the higher cost of mobilizing customer and institutional deposits.
Notably, over 89% of the total interest expenses were attributed to these sources.
Notwithstanding the rise in interest expenses, UBA successfully increased its net interest income by 17% year-on-year to N351.88 billion.
The bank also set aside N18.609 billion as provision for expected credit losses, a figure that is over 160% higher than the N7.139 billion provided in Q1 2024.
Non-interest income
UBA also generated substantial earnings from non-interest income sources, primarily fees and commission income, which continued to bolster the bank’s topline. Key contributors include:
- Electronic banking income – N47.844 billion (+7.86% YoY)
- Commission on transactional activities – N29.669 billion (-2.02% YoY)
- Account maintenance fees – N10.390 billion (+11.09% YoY)
While the bank earned significantly from electronic transactions, it also incurred notable expenses in this segment, spending approximately N42 billion on electronic business operations
Balance sheet analysis
UBA’s balance sheet continues to be strongly deposit-driven, with total deposits from customers and financial institutions reaching N26.65 trillion, up 8.09% or N1.995 trillion in just three months. Deposits now account for over 84% of the Group’s total balance sheet size.
The bank also significantly increased its investment in securities, particularly those classified at fair value through other comprehensive income (FVOCI), which grew by over N1.2 trillion in Q1 2025 alone.
This strategic allocation suggests an effort to capitalize on attractive yields in fixed-income markets while maintaining liquidity and balance sheet strength.
Stock market performance
UBA closed its last trading day on Wednesday, April 23, 2025, at N34.95 per share on the Nigerian Exchange (NGX), reflecting a 5.9% gain from its previous closing price of N33.00.
Since the beginning of the year, UBA’s share price has appreciated by 2.79%, up from its opening price of N34.00.
In 2024, the share price recorded a year-to-date gain of 32.55%.
