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By Chinwendu Obienyi
United Bank for Africa (UBA) has signaled a strategic shift towards sustainable growth and earnings quality following its recent recapitalisation.
This comes as the pan-African lender posted a modest increase in gross earnings to N801.46 billion in the first quarter (Q1) of 2026.
According to its Q1 2026 filed with the Nigerian Exchange Limited (NGX) at the weekend, its Q1 results showed gross earnings rising by 4.9 per cent from N764.31 billion recorded in the corresponding period of 2025, underscoring steady revenue growth amid a more measured expansion strategy.
The bank’s interest income also climbed by 6.9 per cent to N641.10 billion, reflecting resilience in core banking operations despite a tighter operating environment.
However, UBA’s loan book grew at a slower pace, with loans and advances to customers increasing by 2.1 per cent to N7.17 trillion, highlighting a deliberate shift towards disciplined lending and risk management.
Group Managing Director, UBA, Oliver Alawuba, said the bank’s performance reflects the strength of its diversified African footprint and the benefits of strategic investments across its markets.
According to him, profit before tax stood at N160.7 billion, supported by improved operating momentum across core banking franchises and a resilient balance sheet.
“UBA’s Q1 2026 reflects the continued strength of our pan-African diversified model and the benefits of our strong franchise in the markets we operate in,” Alawuba said.
He noted that profitability has moderated compared to the previous year, describing 2026 as a transition period marked by disciplined provisioning, targeted investments, and a focus on higher-quality earnings.
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Post-tax return on equity rose to 13.7 per cent, while return on assets stood at 1.8 per cent, both pointing to a gradual normalisation of earnings following the bank’s capital strengthening exercise.
Customer deposits remained robust at N24.1 trillion, helping to support a balance sheet that expanded to N33.1 trillion, reinforcing the bank’s liquidity and funding position across its 20 African markets and international operations.
Also commenting, Executive Director, Finance & Risk Management, UBA, Ugo Nwaghodoh, said the bank’s performance aligns with its long-term strategic priorities.
He highlighted improvements in key profitability indicators compared to December 2025, noting that return on equity increased from 10.55 per cent, while return on assets rose from 1.3 per cent over the same period.
“The Group’s balance sheet remains strong, supported by a diversified funding base and disciplined capital deployment,” Nwaghodoh said.
He added that cost of funds declined to 3.7 per cent, while net interest margin remained stable at 6.5 per cent, reflecting effective funding management and resilient core earnings.
The results point to a bank deliberately trading rapid growth for stability, as it consolidates gains from recapitalisation and positions for long-term scalability.
UBA’s continued investments in digital banking and its regional diversification strategy are expected to enhance revenue resilience, particularly as it deepens its role in financial inclusion and intra-African trade facilitation.
With stronger capital buffers, improved asset quality focus, and a cautious lending approach, the lender appears set to navigate near-term macroeconomic pressures while building a foundation for more sustainable growth over the medium term.
