United Bank for Africa (UBA) Plc posted a 6.1% rise in profit after tax for the first half of 2025, despite a challenging operating environment. The bank’s net income climbed to ₦335.53 billion, up from ₦316.36 billion recorded in the first half of 2024.
The increase, however, did not translate to higher earnings per share, as EPS marginally declined to ₦8.86 from ₦8.90 due to dilution from new share issuances.
The Board recommended an interim dividend of ₦0.25 per share — significantly lower than the ₦2.00 declared in the same period last year. Based on the bank’s closing price of ₦47.00 per share, this represents a dividend yield of just 0.5%.
UBA’s performance was driven by a 32.9% year-on-year growth in interest income, which reached ₦1.33 trillion. This was supported by higher earnings from loans, investment securities, and interbank activities. However, interest expense surged 70.4% year-on-year to ₦560.61 billion due to rising funding costs.
Net interest income grew by 14.6% year-on-year to ₦773.03 billion, while non-interest income fell sharply by 37% to ₦162.34 billion, following a significant reduction in FX revaluation gains.
Operating expenses rose 9.5% year-on-year to ₦514.99 billion, though the impact was partially cushioned by lower costs for fuel, repairs, and maintenance. Pretax profit stood at ₦388.41 billion, down 3.3% year-on-year, but a reduced tax burden allowed net income to grow modestly.
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