UBA Records Sharp Q1 2026 Profit Decline Despite Revenue Growth
United Bank for Africa (UBA) has posted a significant UBA Q1 2026 profit decline, with pretax profit dropping 21.35% year-on-year to N160.655 billion, down from N204.264 billion recorded in the same period of 2025, according to the bank’s unaudited group financial results for the quarter ended March 31, 2026.
Despite the bottom-line pressure, UBA’s gross earnings grew 4.86% to N801.42 billion, driven by solid performance in both interest and non-interest income. Interest income climbed 6.88% to N641.095 billion, accounting for roughly 80% of gross earnings. Meanwhile, interest expenses rose at a modest pace of just 1.91% to N257.384 billion, helping deliver a net interest income growth of over 10% to N383.711 billion. Net fee and commission income also expanded 14.45% to N87.622 billion, reflecting resilient transactional activity across the group.
The Cost Side Tells a Different Story
Total operating expenses surged 29.77% to N318.952 billion a major factor behind the UBA Q1 2026 profit decline. The group spent over N40 billion on fuel, repairs, and maintenance alone, pushing other operating expenses up by 37% to N204 billion. Impairment charges nearly tripled, climbing to N41.242 billion from N14.2 billion in Q1 2025, adding further weight on the bottom line. Profit after tax settled at N146.623 billion, a 22.77% drop year-on-year.
On the balance sheet, total assets edged marginally lower by 0.13% to N33.130 trillion, while customer deposits grew 1% to N24.14 trillion. Loans and advances to customers rose 2.1% to N7.168 trillion. Shareholders’ funds stood at N4.310 trillion.
UBA’s stock opened the year at N41.65 and closed at N55, delivering a year-to-date return of 32.1%.
