By Adewunmi Oluwaseun
United Bank for Africa (UBA), recorded a 33 percent surge in profit for the first quarter of 2025, driven by a spike in interest income from loans and financial investments.
The banking giant pulled in a net interest income of N351.9 billion—a 17 percent rise compared to the same period in 2024—as lending and investments in bonds, treasury bills, and promissory notes brought in stronger yields.
UBA’s quarterly report released Wednesday showed that income from investment securities alone soared by nearly 49 percent, signaling a strategic shift away from reliance on loans amid growing customer defaults caused by steep borrowing costs.
Nigeria’s benchmark interest rate rose to 27.5 percent in the review period, up from 24.8 percent a year earlier, allowing banks to charge higher rates on loans.
But that also increased pressure on borrowers, forcing UBA to allocate nearly seven times more funds to cover bad loans compared to the first quarter of 2024.
Foreign exchange and trading income also ballooned by 211 percent as the group cut losses on derivatives by over 82 percent.
Pre-tax profit rose by 30.7 percent, while after-tax earnings climbed to N189.8 billion from N142.6 billion.
UBA’s return on equity improved from 4.2 percent to 5.2 percent, highlighting stronger shareholder value despite a volatile economic climate.
