United Bank for Africa (UBA) Q1 2025 earnings summary

Executive summary

• Net profit for Q1 2025 rose to ₦189.8bn, up 33% year-over-year from ₦142.6bn, driven by strong interest and non-interest income.

• Total comprehensive income declined to ₦256.5bn from ₦581.5bn due to lower FX translation gains.

• Operating income increased 23% year-over-year to ₦464.2bn, with robust growth in both interest and fee-based revenues.

• The bank maintained a strong liquidity position, with cash and bank balances at ₦9.54tn as of March 2025.

• No dividend declared for the quarter; capital raise program ongoing to meet new regulatory requirements.

Financial highlights

• Interest income grew 36% year-over-year to ₦599.8bn, while interest expense rose 77% to ₦247.96bn.

• Net interest income increased 17% to ₦351.9bn; net fee and commission income up 16% to ₦72.0bn.

• Net trading and FX income tripled to ₦37.0bn; total non-interest income rose 44% to ₦112.4bn.

• Operating expenses increased 12% to ₦245.8bn, with higher staff and regulatory costs.

• Basic and diluted EPS for Q1 2025 was ₦5.35, up from ₦3.96 in Q1 2024.

Outlook and guidance

• The bank is executing a capital raise to comply with the CBN's new ₦500bn minimum capital requirement for international banks, with completion expected by end-2025.

• Management expects even operational performance throughout the year, though macroeconomic factors may impact results.