United Bank for Africa PLC has released its unaudited group financial results for Q1 ended March 31, 2026.
According to the released results, the Group reported a pretax profit of N160.655 billion compared to N204.264 billion reported in Q1 2025, depicting 21.35% YoY decline.
However, gross earnings grew by 4.86% to N801.42 billion, driven by strong growth in interest and non-interest income.
Key highlights (Q1 2026 vs Q1 2025)
Interest income: N641.095 billion; +6.88% YoY
Interest expenses: N257.384 billion; +1.91% YoY
Net interest income: N383.711 billion; +10.49% YoY
Net fee and commission income: N87.622 billion; +14.45% YoY
Total non-interest income: N137.138 billion; +17.45% YoY
Total operating income: N520.849 billion; +17.25% YoY
Impairment charge: N41.242 billion; +92.01% YoY
Net interest income after impairment: N479.607 billion; +6.57% YoY
Total operating expenses: N318.952 billion; +29.77%
Profit after tax: N146.623 billion; -22.77% YoY
Earnings per share: N3.11; -41.87% YoY
A cursory review of the results shows a strong top-line performance, but a decline in the bottom line, attributed to rising operating expenses.
The group’s core income was stronger in Q1 2026 compared to the same period last year.
Net operating income after impairment charge grew by 6.57% to N479.607 billion compared to N450.057 billion in Q1 2025.
This was buoyed by a combination of factors;
Strong interest income of N641.095 billion, which has continued to drive the bank’s gross earnings, accounting for about 80% of gross earnings.
The almost flat growth in interest expenses at just 1.91% to N257 billion. Combined with the high interest income, this gave a strong net interest income growth of over 10%.
It is important to note that now, interest income from investment in securities contributed more, about 53% of interest income, compared to the interest income from loans and advances, which contributed 29% to interest income
The non-interest income, led by net fees and commission income, which grew by 14.45% to N137 billion, also contributed to the growth in core income.
Specifically, the decline in fee and commission expenses contributed to the rise in net fee and commission income to N86.7 billion in Q1 2026.
Despite the strong top line performance, profit moderated. This can be attributed to the rise in total operating expenses, with the Group spending over N40 billion on fuel, repairs, and maintenance, the highest expense line here. This contributed to the 37% increase in other operating expenses to N204 billion in Q1 2026.
Also, total impairment charge remained elevated at N41.242 billion compared to N14.2 billion in Q1 2025
Balance sheet
The statement of financial position shows that total assets declined marginally by 0.13% to N33.130 trillion. This can be attributed to the 20% drop in investment in securities at amortized cost to N7.9 trillion compared to the N9.91 trillion as of December 2025
Loan and advances to customers grew by 2.1% to N7.168 trillion, while customers’ deposits grew by 1% to N24.14 trillion, still driving the balance sheet size.
The bank’s share capital and premium amount to N504 billion, resulting from Rights Issues. Shareholders’ funds at N4.310 trillion.
Market performance
UBA began the year with a share price of N41.65 and closed at N55, representing a year-to-date return of 32.1%. The stock also gained 17% over the past four-week period.
