SUN NOV 02 2025-theGBJournal| Africa’s Global Bank, United Bank for Africa (UBA) Plc has published its audited results for the third quarter ended September 30, 2025, reporting strong and impressive growth across all its key indicators.
The Bank saw gross earnings growth of 3.0% to N2.469 trillion in the first two quarters of the current fiscal year, up from N2.398 trillion recorded in September last year, while its net Interest income which stood at N1.103 trillion at the end of the third quarter in 2024, rose by 6.2 per cent to N1.172 trillion in the period under consideration.
”We delivered solid performance supported by prudent balance sheet management, innovation, and a well-diversified earnings base across all our markets,” said Managing Director/ CEO Mr. Oliver Alawuba.
The CEO’s comment is underscored by the bank’s shareholders’ funds which remained very strong at N4.301 trillion, rising by 25.8 per cent from N3.418 trillion recorded in December 2024, again reflecting a strong capacity for internal capital generation and growth.
UBA’s interest income grew 10.1% by y/y to N1.98 trillion, underpinned by higher earnings from investment securities (+30.4% y/y) and loans to banks (+10.2% y/y), which outweighed declines in cash balances (-24.0% y/y) and customer loans (-2.8% y/y).
Interest expense, however, rose by 16.3% y/y to N808.72 billion, primarily due to higher costs on customer deposits (+13.4%) and institutional funding (+29.4%).
Despite funding cost pressures, net interest income ex-LLE grew by 13.8% y/y to N1.11 trillion, supported by a significant 53.9% decline in credit impairment charges to N56.89 billion.
Non-interest income declined 28.9% by y/y to N310.08 billion, weighed by the sharp normalisation of FX-related gains as FX revaluation and trading income fell by 83.3% and 37.6% y/y, respectively.
Nonetheless, investment securities gains surged by 230.6% y/y to NGN106.45 billion, providing some offset, while fee and commission income remained stable (+0.4% y/y).
Operating expenses rose by 4.2% y/y to N846.15 billion, driven by higher personnel costs (+20.1% y/y), AMCON levy (+32.1%), and depreciation (+34.5%), though we saw moderation in occupancy (-32.1% y/y), contract (-20.3% y/y) and communication (-45.5% y/y) costs.
That said, the cost-to-income ratio (ex-LLE) weakened to 57.1% (9M-24: 52.8%).
UBA saw a 10.5% y/y decline in earnings per share (EPS) to N13.56 (9M-24: N15.15).
This decline partly stemmed from the issuance of additional outstanding shares by the bank.
Profit before tax (PBT) dipped by 4.1% y/y to N578.60 billion, but a substantially lower tax charge (-47.5% y/y) lifted profit after tax to N537.53 billion, up 2.3% y/y.
UBA also reported a sharp drop in impairment charges and sustained investment income which offset pressures from elevated funding costs and weaker FX income.
Speaking on the bank’s efforts to consolidate its performance for the rest of the 2025 financial year and beyond, Executive Director, Finance & Risk, Ugo Nwaghodoh said ”we remain focused on sustaining profitability, expanding our digital income streams, and delivering long-term value to our shareholders.”
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