United Bank for Africa PLC has released its unaudited group financial results for Q1 ended March 31, 2026.
According to the released results, the Group reported a pretax profit of N160.655 billion compared to N204.264 billion reported in Q1 2025, depicting 21.35% YoY decline.
However, gross earnings grew by 4.86% to N801.42 billion, driven by strong growth in interest and non-interest income.
A cursory review of the results shows a strong top-line performance, but a decline in the bottom line, attributed to rising operating expenses.
The group’s core income was stronger in Q1 2026 compared to the same period last year.
Net operating income after impairment charge grew by 6.57% to N479.607 billion compared to N450.057 billion in Q1 2025.
This was buoyed by a combination of factors;
It is important to note that now, interest income from investment in securities contributed more, about 53% of interest income, compared to the interest income from loans and advances, which contributed 29% to interest income
The non-interest income, led by net fees and commission income, which grew by 14.45% to N137 billion, also contributed to the growth in core income.
Despite the strong top line performance, profit moderated. This can be attributed to the rise in total operating expenses, with the Group spending over N40 billion on fuel, repairs, and maintenance, the highest expense line here. This contributed to the 37% increase in other operating expenses to N204 billion in Q1 2026.
Also, total impairment charge remained elevated at N41.242 billion compared to N14.2 billion in Q1 2025
Balance sheet
The statement of financial position shows that total assets declined marginally by 0.13% to N33.130 trillion. This can be attributed to the 20% drop in investment in securities at amortized cost to N7.9 trillion compared to the N9.91 trillion as of December 2025
Market performance
UBA began the year with a share price of N41.65 and closed at N55, representing a year-to-date return of 32.1%. The stock also gained 17% over the past four-week period.
