Global financial institution, United Bank for Africa Plc has announced a growth in its profit for the first quarter of 2025, recording a profit after tax of ₦189.8bn. This represents a rise from the ₦142.6bn reported in the same period last year.
In its Condensed Consolidated Statements of Comprehensive Income for the three months ended 31 March 2025, UBA reported a 36 per cent rise in interest income, which climbed to ₦599.8bn from ₦440.8bn in the first quarter of 2024.
Interest income on amortised cost and fair value through other comprehensive income securities contributed a major part of this increase, with a boost of ₦597.1bn from ₦440.4bn in the previous year.
In the period under review, the bank’s interest expense surged to ₦247.9bn from ₦140.1bn, resulting in a net interest income of ₦351.9bn, an increase from ₦300.7bn in the first quarter of 2024.
Fees and commission income also saw an increase, with UBA reporting N124.1bn in Q1 2025, compared to N113.7bn in Q1 2024, while fees and commission expenses remained largely stable at N52.1bn in 2025 from N51.5bn in 2024. This led to a net fee and commission income of N72bn, up from N62.2bn in the previous year.
Furthermore, UBA recorded impressive non-interest income, which rose by 44 per cent from N77.9bn in Q1 2024 to N112.4bn in the current quarter, driven by strong growth in net trading and foreign exchange income, which reached N37bn from N11.9bn in 2024.
The bank’s operating income rose to N464.2bn, a 22.7 per cent increase from N378.6bn in the same period last year. This performance was also supported by a reduction in the impairment charge for credit losses, which increased to N11.1bn from N1.6bn in 2024.
Operating expenses surged, with UBA incurring N245.8bn in total operating expenses, compared to N218.9bn in the first quarter of 2024. The most significant increases came from employee benefit expenses, which jumped to N84.3bn from N66.3bn, and other operating expenses, which rose to N148.5bn from N142.6bn. Depreciation and amortization expenses also rose to N12.9bn from N10.1bn.
In line with its profit growth, the bank’s total assets increased to N31.7tn in March 2025, compared to N30.3tn as of December 2024. Key contributors to the growth in assets were an increase in loans and advances to customers, which stood at N6.8tn, slightly down from N6.95tn in December 2024, and the growth in investment securities, which reached N13.1tn, a significant rise from N12.5tn recorded as of December 2024.
The bank’s total liabilities grew by N1.1tn to N28.0tn in March 2025 from N26.9tn at the end of 2024, mainly due to a rise in deposits from customers, which increased to N22.9tn from N21.9tn. The bank’s equity also saw a boost, increasing to N3.7tn from N3.4tn in December 2024, largely driven by retained earnings, which stood at N1.6tn as of 31 March 2025.
The bank’s earnings per share improved to N5.35, up from N3.96 in Q1 2024, reflecting the strong growth in profit.
UBA’s non-controlling interests also contributed to the bank’s performance, with N6.8bn attributable to them in Q1 2025, slightly down from N7bn in the same period last year. The total comprehensive income for the period was N256.5bn, a decrease from N581.5bn in 2024, largely due to a decline in fair value changes of financial assets.
The PUNCH reported that United Bank for Africa Plc has reported a profit before tax of N803.73bn for the 2024 financial year, driven by solid core earnings and improved operational efficiency.
Credit: punchng.com
