UBA said its total assets stood at N33.1 trillion in the first quarter ended March 31, 2026, reporting a quarter that combined rising operating income with a sharp drop in profitability. Oliver Alawuba framed the numbers as part of a deliberate transition, saying: "UBA’s Q1 2026 performance underscores the strength of our diversified Pan-African model and the resilience of our core banking franchises."
The scale of the quarter matters: gross earnings rose to N801.5 billion, up five per cent, while interest income increased 6.9 per cent to N641.1 billion. Non-interest income climbed 17.3 per cent to N137.1 billion, net interest income advanced 10.5 per cent to N383.7 billion, and operating income grew 12.2 per cent to N520.8 billion. Customer deposits remained strong at N26.2 trillion at quarter-end.
Despite those top-line gains, profit before tax declined by 21.4 per cent to N160.7 billion and profit after tax fell by 22.8 per cent to N146.6 billion in Q1 2026. The contrast—broadly higher earnings but materially lower profits—was the central takeaway for investors watching uba bank this week.
Context for the quarter reaches back through 2025. UBA reported full-year 2025 total assets of N33.2 trillion and customer deposits of N27.2 trillion, with shareholders’ funds at N4.25 trillion and a capital adequacy ratio of 23.2 per cent. The bank said the 2025 financial year was defined by its proactive approach to the Central Bank of Nigeria’s new recapitalisation requirements and that "A total of N395bn additional capital was raised, enhancing our capacity to support our footprints, and expanding lending to key sectors." The capital raising programme was oversubscribed.
Management pointed to items that hit last year’s results but said they were largely non-recurring. In full-year 2025 reports UBA disclosed loan loss provisions of N331 billion and sharply higher fair value losses on derivatives—reported as N227 billion in one account and N278 billion in another—alongside two close but distinct figures for gross earnings: N3 trillion in one report and N3.09 trillion in another.
That mix explains the tension in the numbers. As Ugo Nwaghodoh put it, "The Group’s Q1 performance reflects a deliberate shift towards a more sustainable and scalable earnings profile following our successful recapitalisation." He added that "Our balance sheet remains robust, supported by a diversified funding base and disciplined loan growth," and argued that with stable funding costs and improving asset quality the group is positioned to drive operating leverage and long-term value creation.
There is a clear friction point: the underlying banking business is generating more income, but the headline profits have been trimmed by provisions and valuation swings that managers say were concentrated in 2025. UBA’s regional results offer another layer—the bank said West Africa operations recorded 53 per cent profit growth and East and Southern Africa delivered a 61 per cent increase—yet those regional gains have not fully offset the costs recognised in the prior year.
The numbers also put a spotlight on what comes next. Management highlighted investments in digital capabilities and regional expansion as drivers of resilience and future growth. As Alawuba said, "Our continued investments in digital capabilities and regional expansion are enhancing revenue resilience and positioning the Group for sustainable long-term growth." He added a strategic promise: "We remain firmly committed to driving financial inclusion, enabling intra-African trade, and delivering superior value to our stakeholders."
For readers following bank earnings, the immediate takeaway is straightforward: UBA enters the rest of 2026 with a larger capital base after an oversubscribed N395 billion raise, robust deposits and rising underlying income, but with a profitability line that will need confirmation that the large 2025 provisions and derivative valuation effects were indeed one-off. Oliver Alawuba’s verdict, returned to at the end of the report, is that the group is through a transition year and geared for the next phase—if asset quality stabilises and the non-recurring charges do not recur, the bank should be able to convert the stronger income lines into recovering profits.
