…Gains were broad-based, with higher earnings from investment securities (+36.1% y/y to N694.25 billion), loans to customers (+22.3% y/y to N420.46 billion), loans to banks (+3.9% y/y to N105.68 billion), and cash & bank balances (+136.3% y/y to N113.25 billion)
THUR SEPT 18 2025-theGBJournal| United Bank for Africa Plc (UBA) published its H1-25 financials today, reporting a 6.1% y/y growth in profit after tax (PAT) to N335.53 billion (H1-24: N316.36 billion).
The performance is attributed to the sustained core performance, which offset the lower non-core income recorded.
UBA’s earnings Per Share (EPS) declined marginally to N8.86 in H1-25 (H1-24: 8.90), reflecting the dilutive impact of new share issuances.
The Bank’s Board proposed an interim dividend of N0.25/share (H1-24: N2.00/share), translating to a dividend yield of 0.5% based on the last closing price of N47.00/share.
The high-yield environment and earning assets expansion continued to drive topline growth, as interest income advanced by 32.9% y/y to N1.33 trillion.
Gains were broad-based, with higher earnings from investment securities (+36.1% y/y to N694.25 billion), loans to customers (+22.3% y/y to N420.46 billion), loans to banks (+3.9% y/y to N105.68 billion), and cash & bank balances (+136.3% y/y to N113.25 billion).
On the funding side, interest expense surged 70.4% y/y to N560.61 billion, reflecting increased cost of customer deposits (+47.6% y/y to N301.91 billion) and institutional funding (+226.5% y/y to N176.59 billion).
Net interest income nonetheless expanded 14.6% y/y to NGN773.03 billion, supported by a 46.9% decline in credit impairment charges to NGN31.97 billion.
Non-interest income contracted sharply by 37.0% y/y to N162.34 billion, as the prior year’s sizable FX revaluation gains normalized (-87.5% y/y to N40.89 billion).
While investment securities gains (+230.6% y/y to N70.76 billion) and fee & commission income (+1.3% y/y to N147.04 billion) provided some buffer, these were insufficient to offset FX-related pressures.
Operating expenses rose 9.5% y/y to N514.99 billion, reflecting higher personnel costs (+28.6% y/y), AMCON levy (+32.1% y/y), and depreciation (+22.7% y/y).
However, this was partially tempered by lower other operating expenses (-11.0% y/y), driven by a 27.1% y/y decline in fuel, repairs, and maintenance costs. As a result, the cost-to-income ratio (ex-LLE) edged higher to 57.0% (H1-24: 54.0%).
As a result, PBT declined by 3.3% y/y to N388.41 billion, although a lower effective tax charge (-37.9% y/y) supported PAT, which grew 6.1% y/y to N335.53 billion.
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