UBA Plc Nets N335.523bn, As African Business Overtakes Nigeria In Profit, Directors Offer N0.25 Interim Dividend

United Bank for Africa Plc, on Thursday submitted its audited financials for the half-year ended June 30, 2025 details of which confirmed that the group’s African business has come of age, accounting for the bulk of total revenue and profit before and after tax.

According to the result, the net profit from its African subsidiaries significantly drove the group’s numbers being almost five times that of the group’s home country, arising from the surge in interest expenses in Nigeria, made worse by the impairment loss.

Total revenue for the period rose to N1.607tr, from N1.371tr reported in the prior half year, driven significantly by Africa’s N837.093bn, which outpaced the N811.433bn from its Nigerian business, with the international operations yielding N92.691bn. This was a divergence from the 2024 scenario when Nigeria took the lead with N742.41bn in revenue, ahead of the N702.058bn from the combined African arms, and N107.226bn from its international subsidiaries.

By business segments, revenue was driven by the twin of retail and commercial, which fetched of N695.953bn, down from N820.474bn in the 2024 half-year; and treasury and financial markets’ N694.506bn, compared to N559.966bn; while corporate segment earned N381.868bn from N302.306bn.

According to the scorecard, interest income for the year grew from N1.003tr to N1.333tr, lifted by the term loans to corporate which yielded N319.013bn revenue, up from N240.414bn; ahead of the N113.25bn from interest on cash and bank balances, up from N47.919bn. Also, interest income on loans and advances to banks increased from N101.666bn to N105.675bn; just as investment securities (treasury bills) contributed N366.425bn from N255.115bn; ahead of the N279.21bn from investment in bonds, an improvement from the previous N216.324bn; among others.

Interest expenses for the period leaped to N560.606bn from N328.935bn, as UBA Plc paid N301.908bn as interest on customer deposits, up from N204.491bn; which bank deposits cost N176.587bn from N54.085bn; with borrowings chopping N80.083bn from N68.653bn; among others. This left net interest expense at N773.027bn from N674.618bn.

Impairment charge for credit losses on loans and advances for the half-year dropped to N35.151bn from N58.556bn, after the impact of the N57.669bn impairment charge on credit losses on customer loans and advances which dropped from N71.971bn, was mitigated by the N30.578bn recoveries in allowance for credit loss for the period, more than double the previous N14.813bn. Arising from further recoveries on investment securities, total actual net impairment for the period fell from N60.212bn in the 2024 half-year to N31.965bn. Consequently, net interest income after impairment on financial instruments grew to N741.062bn from N614.406bn.

Fee and commission income recorded a marginal growth at N253.596bn from N250.616bn, lifted by N100.501bn in electronic banking income, which however dropped slightly from N106.15bn in 2024; credit related fees and commissions rose from N32.941bn to N39.892bn; just as fund transfer fees dropped tom N26.73bn to N24.971bn. Fees and commission expense amounted to N106.555bn from N105.519bn, the bulk of which went to e-banking expenses of N85.538bn, up from N83.15bn; leaving net fee and commission income at N147.041bn, slightly better than previous N145.097bn.

Net trading and foreign exchange loss for the period was N10.049bn, from the previous N98.179bn gain. Of this, fixed income securities garnered N70.759bn from N31.882bn; followed by foreign exchange trading income which however dropped from N51.814bn to N42.659bn; while foreign currency revaluation gain dropped from N326.182bn to just N40.891bn. The bulk of these gains were however wiped off entirely by net fair value loss on derivative amounting to N164.358bn, which was about 50% of the previous N311.699bn. Other operating income rose to N30.789bn from N18.699bn; net monetary loss on hyperinflation rose slightly from N4.282bn to N5.439bn.

Employee benefit expenses increased from N133.86bn to N172.205bn; depreciation and amortisation closed at N29.829bn, up from N24.303bn.

Other operating expenses stayed flat at N312.957bn, from N312.359bn after fuel, repairs and maintenance expenses rose from N70.325bn to N92.886bn; resulting in profit before tax of N388.413bn from N401.577bn. Income tax expense dropped from N85.217bn to N52.881bn; leaving profit for the period at N335.532bn from N316.36bn, which represented earnings per share of N8.86, a slip from the N8.90 reported in the preceding half-year.

UBA Plc reported a balance sheet of N33.268tr, which grew from N30.323tr at the end of December 31, 2024, with customer loans and advances rising from N6.954tr to N7.211tr; just as growth in total liabilities rose to N29.052tr from N26.904tr boosted by the N24.187tr in customer deposits which rose from N21.894tr.