jasdooit

United Bank for Africa Plc showcased a robust performance in the first quarter of 2026, achieving notable growth in core banking revenues and enhanced profitability metrics, which highlight the strength of its diverse pan-African business model. The financial institution reported a net profit of N146.6 billion for the three months ending March 31, 2026, while pre-tax profit reached N160.7 billion, indicating sustained earnings momentum across its primary banking operations. This success was driven by stronger interest and non-interest income sources as well as improved operating revenue. Total earnings increased by 4.9 per cent to N801.5 billion, compared to N764.3 billion during the same period in 2025. Interest income rose by 6.9 per cent to N641.1 billion, while net interest income grew by 10.5 per cent to N383.7 billion, showcasing enhanced lending activities and higher returns on earning assets within its markets. The bank also experienced significant growth in non-interest income, which increased by 17.3 per cent to N137.1 billion, up from N116.9 billion in the first quarter of 2025. As a result, operating income climbed by 12.2 per cent to N520.8 billion, compared to N464.2 billion in the same period last year. Despite a more standardised earnings environment following the banking sector’s recapitalisation phase, the bank achieved improvements in key efficiency and profitability indicators. Its cost of risk dropped significantly to 2.02 per cent, down from 3.18 per cent in the previous year, demonstrating better credit risk management and improved asset quality. Likewise, the bank recorded improved returns, with return on average equity rising to 13.7 per cent, up from 10.55 per cent, while return on average assets increased to 1.77 per cent, compared to 1.27 per cent previously. Funding efficiency also saw a slight improvement, with the cost of funds decreasing to 3.73 per cent from 3.83 per cent, highlighting the bank’s strong deposit franchise and disciplined funding strategy. However, the net interest margin decreased to 6.49 per cent, reflecting changing market conditions and strategic balance sheet positioning. Notably, the bank maintained a solid balance sheet position during the quarter, with total assets amounting to N33.13 trillion, relatively stable compared to N33.17 trillion at the end of December 2025. Its loan portfolio expanded as the bank continued to support economic activities across its operating markets. Loans and advances to customers increased by 2.1 per cent to N7.17 trillion, compared to N7.02 trillion at the end of the previous year. Shareholders’ funds also strengthened, growing by 1.4 per cent to N4.31 trillion, reflecting retained earnings and capital growth. Although deposits slightly declined to N26.21 trillion, the bank stated that customer confidence in its brand remained strong across its markets. Pan-African model driving resilience Commenting on the results, the Group Managing Director of United Bank for Africa, Oliver Alawuba, said the performance highlights the ongoing strength of the bank’s diversified pan-African business model. “UBA’s Q1 2026 reflects the continued strength of our Pan-African diversified model and the benefits of our strong franchise in the markets we operate in,” he stated. According to him, the bank recorded a pre-tax profit of N160.7 billion, supported by improved operational momentum across its core banking franchises and sustained balance sheet resilience. Alawuba explained that the bank’s profitability reflects a more normalised post-recapitalisation earnings environment, which aligns with its earlier guidance to investors. He noted that the bank remains focused on strengthening the quality and sustainability of its earnings through disciplined provisioning, strategic investments, and enhanced risk management. “Customer confidence remains strong, with stable deposit growth and continued balance sheet expansion supporting our operations across 20 African markets and beyond,” he said. Alawuba further noted that the bank’s ongoing investments in digital platforms and regional expansion are beginning to deliver stronger revenue resilience. “We continue to see encouraging progress from our digital investments and regional diversification strategy, which are strengthening revenue resilience and positioning the Group for more sustainable growth,” he said. He added that the bank will continue to prioritise financial inclusion, intra-African trade facilitation, and long-term value creation through a balanced approach to growth and risk management. Also commenting on the results, the Executive Director, Finance and Risk Management at United Bank for Africa, Ugo Nwaghodoh, said the performance reflects the bank’s strategic focus on strengthening its balance sheet and improving earnings quality. “The Q1 2026 performance remains consistent with the strategic direction outlined at the end of 2025, reflecting continued strengthening of the Group’s balance sheet and earnings quality following the successful recapitalisation,” he said. Nwaghodoh noted that the bank’s profitability indicators show steady improvement, with return on equity at 13.7 per cent and return on assets at 1.8 per cent, reflecting the impact of ongoing investments aimed at supporting future growth and operational scalability. He added that the bank’s balance sheet remains strong and diversified, supported by a broad funding base. According to him, the bank’s loan portfolio growth to N7.17 trillion reflects disciplined lending expansion and continued strengthening of its asset portfolio. Funding discipline also remained strong during the quarter, he said, with stable funding costs and resilient core earnings. Overall, Nwaghodoh said the bank remains strongly capitalised, highly liquid, and well positioned to execute its long-term strategy, with continued emphasis on disciplined growth, efficient capital deployment, and sustainable value creation across its markets. Provided by SyndiGate Media Inc. (Syndigate.info).