UBA Reports N388.4 Billion Pre-Tax Profit in H1 2025, Declares Interim Dividend

UBA has reported N388.4 billion Pre-Tax Profit in H1 2025 and declared interim dividend.

 

NaijaOnPoint Nigeria reports that the United Bank for Africa (UBA) Plc has released its financial results for the half-year ended June 30, 2025, recording a pre-tax profit of N388.4 billion, a marginal 3.28% decline from the N401.5 billion reported in the same period last year.

Despite the dip, the performance reflects resilience, with the group posting stronger revenue growth. Interest income surged 32.89% year-on-year to N1.3 trillion, up from N1 trillion in H1 2024, driven mainly by Treasury bills (N366.4 billion), term loans to corporates (N319 billion), bonds under investment securities (N279.2 billion), cash and bank balances (N113.2 billion), and loans & advances to banks (N105.6 billion).

 

On the expense side, interest expenses jumped 70.5% to N560.6 billion from N328.9 billion last year, reflecting rising funding costs. Still, net interest income rose 14.59% to N773 billion, while after impairments of N35.1 billion, net interest income stood at N741 billion — a 20.61% YoY increase.

UBA also posted N147 billion in net fees and commission income, up slightly from N145 billion a year earlier. However, rising costs eroded margins. The bank reported a net trading and foreign exchange loss of N10 billion, compared with a gain of N98.1 billion last year. Employee benefits climbed 28.65% to N172.2 billion, while other operating expenses inched up to N312.9 billion.

As a result, pre-tax profit slipped to N388.4 billion. However, post-tax profit improved 6.06% to N335.5 billion, buoyed by lower income tax charges of N52.8 billion compared with N85.2 billion last year.

On the balance sheet side, UBA’s total assets rose 9.57% to N33.2 trillion, from N30.3 trillion, while retained earnings increased by 12.85% to N1.6 trillion.

The Board has proposed an interim dividend of 25 kobo per share, far below the N2.00 interim dividend declared in H1 2024. This represents a payout ratio of 7.83% (vs. 7.3% in 2024) and a dividend yield of 1.4% (down from 8.9% last year).

Key Highlights (H1 2025 vs H1 2024)

• Interest income: N1.3 trillion (+32.89% YoY)

• Net interest income: N773 billion (+14.59% YoY)

• Net interest income after impairment: N741 billion (+20.61% YoY)

• Net fees & commission: N147 billion (+1.34% YoY)

• Other operating expenses: N312.9 billion (+0.19% YoY)

• Pre-tax profit: N388.4 billion (-3.28% YoY)

• Post-tax profit: N335.5 billion (+6.06% YoY)

• Retained earnings: N1.6 trillion (+12.85% YoY)

• Total assets: N33.2 trillion (+9.57% YoY)

On the Nigerian Stock Exchange, UBA shares closed at N47.00 per unit on September 18, 2025, representing a 38.33% year-to-date gain.