United Bank for Africa (UBA) Plc has confirmed it is intensifying efforts to recover outstanding debts and plans to resume dividend payments to shareholders this year.
This assurance comes despite a 47% decline in pre-tax profit for the year ending December 31, 2025, as reported in the bank’s audited financial results.
In an interview with Arise TV, UBA CEO Oliver Alawuba attributed the decline in profit, which fell to N423 billion from N804 billion in 2024, to a substantial one-off provision for bad loans totaling N331 billion.
What the CEO is saying
Alawuba confirmed that UBA is actively pursuing customers who have defaulted on their loans, aiming to restore the bank’s non-performing loan (NPL) ratios to levels that will support dividend distributions.
- “We’re going after these defaulting customers and there are signs that they are paying back. Once they do, we’ll be in a position to pay dividends for this year.”
The pause in final dividend payments last year followed a directive from the Central Bank of Nigeria (CBN), which required banks to exit the forbearance loan window. In compliance with this, UBA made a substantial one-time provision of N331 billion.
- “That dividend didn’t come because the NPL ratio was a bit higher than expected for a dividend payment. However, the good news is that this is a one-off thing.”
Get up to speed
Despite the decline in profits, UBA saw a strong top-line performance with gross earnings reaching N3.09 trillion. This was driven by growth in both interest and non-interest income.
- Interest income grew by 9.84%, reaching N2.649 trillion, with investment securities contributing N1.47 trillion, which made up about 56% of total interest income.
- UBA’s treasury bills generated over N805 billion, up 18%, while bond income surged 45% to N653 billion.
- Loans and advances to customers also contributed significantly, generating N889 billion, about 33% of total interest income.
The bank’s deposit base expanded by 11%, reaching N23.949 trillion, which now accounts for over 71% of its balance sheet. Cash and bank balances rose to N185 billion, up from N146 billion in 2024.
More insights
Alawuba emphasized that despite the temporary pause in dividends, UBA remains a financial powerhouse with a diversified portfolio across 24 countries.
- Gross Earnings: N3 trillion and growing.
- Shareholders’ Funds: N4.3 trillion.
- Capital Adequacy Ratio: A strong 23.2%, which provides a robust cushion against potential losses.
- Liquidity Position: The bank’s deposit base has risen to N27.2 trillion, up 12% from the previous year.
With a loan portfolio of approximately N7 trillion, UBA sees a “huge gap” that will allow for significant loan growth, especially as Nigeria’s economy continues its recovery.
- “As the economy in Nigeria moderates the recovery… interest rates will come down, which will give us the impetus for loan growth that will further boost profit. The business is strong,” Alawuba said.
What you should know
Nigerian banks, including UBA, recorded significant loan loss provisions in 2025, following the expiration of the CBN’s Forbearance Program.
Despite these challenges, UBA’s international operations delivered strong results, contributing a combined profit of N312 billion—up from N223 billion in 2024. The bank’s West Africa business reported a 53% profit growth, while East and Central Africa saw a 61% profit increase in 2025.
While UBA faces challenges, its strategic focus on debt recovery, strong liquidity position, and continued growth in its foreign operations demonstrate its resilience in a competitive banking landscape.
