{"id":64710,"date":"2025-04-24T10:47:36","date_gmt":"2025-04-24T10:47:36","guid":{"rendered":"https:\/\/abujacityjournal.com\/livenews\/?p=64710"},"modified":"2025-04-24T10:47:36","modified_gmt":"2025-04-24T10:47:36","slug":"uba-rakes-in-bigger-profit-as-interest-income-soars","status":"publish","type":"post","link":"https:\/\/abujacityjournal.com\/livenews\/2025\/04\/24\/uba-rakes-in-bigger-profit-as-interest-income-soars\/","title":{"rendered":"UBA Rakes in Bigger Profit as Interest Income Soars"},"content":{"rendered":"<p><strong>By Adewunmi Oluwaseun<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p>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.<\/p>\n<p>&nbsp;<\/p>\n<p>The banking giant pulled in a net interest income of N351.9 billion\u2014a 17 percent rise compared to the same period in 2024\u2014as lending and investments in bonds, treasury bills, and promissory notes brought in stronger yields.<\/p>\n<p>&nbsp;<\/p>\n<p>UBA\u2019s 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.<\/p>\n<p>&nbsp;<\/p>\n<p>Nigeria\u2019s 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.<\/p>\n<p>&nbsp;<\/p>\n<p>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.<\/p>\n<p>&nbsp;<\/p>\n<p>Foreign exchange and trading income also ballooned by 211 percent as the group cut losses on derivatives by over 82 percent.<\/p>\n<p>&nbsp;<\/p>\n<p>Pre-tax profit rose by 30.7 percent, while after-tax earnings climbed to N189.8 billion from N142.6 billion.<\/p>\n<p>&nbsp;<\/p>\n<p>UBA\u2019s return on equity improved from 4.2 percent to 5.2 percent, highlighting stronger shareholder value despite a volatile economic climate.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Adewunmi Oluwaseun &nbsp; 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. &nbsp; The banking giant pulled in a net interest income of N351.9 billion\u2014a 17 percent rise compared to the same period [&hellip;]<\/p>\n","protected":false},"author":13,"featured_media":64711,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[172],"tags":[],"class_list":["post-64710","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"aioseo_notices":[],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/64710","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/comments?post=64710"}],"version-history":[{"count":1,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/64710\/revisions"}],"predecessor-version":[{"id":64712,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/64710\/revisions\/64712"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/media\/64711"}],"wp:attachment":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/media?parent=64710"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/categories?post=64710"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/tags?post=64710"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}