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Banking | Finance

UBA Plc Delivers Core Income Growth in Q1 2026

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United Bank for Africa Plc, leading Pan-African financial institution, has released its unaudited financial results for the first quarter ended March 31, 2026, demonstrating resilient operating performance and continued balance sheet strength despite a moderated profitability environment.

Gross earnings increased by 5% to ₦801.5 billion, driven by growth across key revenue lines.

Interest income also rose 6.9% to ₦641.1 billion, while non-interest income grew 17.3% to ₦137.1 billion, highlighting the Group’s expanding and diversified revenue base.

Net interest income advanced 10.5% to ₦383.7 billion, supporting a 12.2% increase in operating income to ₦520.8 billion, demonstrating sustained momentum across core banking operations.

UBA recorded notable improvement in key profitability and efficiency metrics, reflecting a more sustainable earnings profile.

While return on average equity rose to 13.7%, return on assets improved to 1.77%, signalling stronger earnings efficiency. Cost of risk declined significantly to 2.02%, underscoring improved asset quality and disciplined risk management. Cost of funds moderated to 3.73% from 3.83% in Dec 2025, reflecting improvement in funding cost.

Profit before tax moderated to ₦160.7 billion, while profit after tax moderated to ₦146.6 billion, representing declines of 21.4% and 22.8% respectively, consistent with the Group’s guidance on earnings normalisation.

The bank also did well in maintaining a strong and resilient balance sheet with total assets of ₦33.1 trillion and customer deposits of ₦26.2 trillion.

Commenting on the results, Group Managing Director/CEO, Oliver Alawuba, said: “UBA’s Q1 2026 performance underscores the strength of our diversified Pan-African model and the resilience of our core banking franchises. While profitability has moderated in line with our expectations for a transition year, we are seeing strong underlying momentum across our markets, supported by improved earnings quality and disciplined risk management.

Our continued investments in digital capabilities and regional expansion are enhancing revenue resilience and positioning the Group for sustainable long-term growth. We remain firmly committed to driving financial inclusion, enabling intra-African trade, and delivering superior value to our stakeholders.”

Also speaking, Executive Director, Finance & Risk Management, Ugo Nwaghodoh, added: “The Group’s Q1 performance reflects a deliberate shift towards a more sustainable and scalable earnings profile following our successful recapitalisation. Key profitability indicators, including return on equity and return on assets, show improvement on a year-to-date basis, despite the normalisation of headline earnings.

“Our balance sheet remains robust, supported by a diversified funding base and disciplined loan growth. With stable funding costs and improving asset quality, we are well positioned to drive operating leverage and long-term value creation.”

UBA expects 2026 to remain a transition year characterised by continued investment in digital transformation and operational scalability; strengthened risk management and provisioning frameworks; enhanced focus on high-quality, sustainable earnings and deeper penetration across African markets.

The Group remains strongly capitalised, highly liquid, and strategically positioned to execute its long-term growth agenda.

United Bank for Africa Plc is a leading Pan-African financial institution, serving over 45 million customers through 1,000 business offices and customer touchpoints in 20 African countries.

With operations in New York, London, Paris, and Dubai, UBA connects people and businesses across Africa through retail, commercial, and corporate banking, payments, trade finance, and cross-border solutions.

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