United Bank for Africa (UBA) Plc is intensifying efforts to recover outstanding debts with the goal of resuming dividend payments to shareholders this year. This commitment comes despite a 47% decline in pre-tax profit for the year ending December 31, 2025.
UBA CEO Oliver Alawuba stated that the profit reduction, which saw pre-tax profit fall to N423 billion from N804 billion in 2024, was due to a substantial one-off provision for bad loans amounting to N331 billion.
Alawuba confirmed that UBA is actively pursuing defaulting customers to improve its non-performing loan (NPL) ratios to levels that will support dividend distributions. He expressed optimism, stating, “We’re going after these defaulting customers and there are signs that they are paying back. Once they do, we’ll be in a position to pay dividends for this year.”
The pause in final dividend payments last year was a consequence of a directive from the Central Bank of Nigeria (CBN) requiring banks to exit the forbearance loan window. UBA complied by making the significant N331 billion provision.
Alawuba further elaborated on the situation, noting, “That dividend didn’t come because the NPL ratio was a bit higher than expected for a dividend payment. However, the good news is that this is a one-off thing.”
Despite the dip in profits, UBA demonstrated strong top-line performance with gross earnings reaching N3.09 trillion. This growth was fueled by increases in both interest and non-interest income.
Interest income rose by 9.84% to N2.649 trillion. Investment securities were a major contributor, accounting for approximately 56% of total interest income with N1.47 trillion. Treasury bills generated over N805 billion, an 18% increase, while bond income surged by 45% to N653 billion. Loans and advances to customers yielded N889 billion, representing about 33% of the total interest income.
The bank’s deposit base expanded by 11%, reaching N23.949 trillion, which now constitutes over 71% of its balance sheet. Cash and bank balances increased to N185 billion, up from N146 billion in 2024.
Alawuba highlighted that despite the temporary halt in dividends, UBA remains a strong financial institution with a diversified presence across 24 countries.
