UBA posts $591 million gross earnings in Q1 2026 as recovery gains pace

United Bank for Africa Plc (UBA), the pan-African lender chaired by Tony Elumelu, opened 2026 on firmer ground after a difficult stretch the year before, posting gross earnings of over N800 billion ($590 million) for the first quarter, showing early signs of recovery after a difficult 2025.

The bank’s gross earnings for the three months ended March 2026 climbed to N801.46 billion ($591.1 million), up from N764.31 billion ($563.7 million) in the same period of 2025. The increase was driven by stronger interest income and support from its diversified income streams across its African and international operations. The improvement, while measured, reflects a business that has worked through much of the strain that weighed on its earnings last year.

Profit after tax for the first quarter stood at N146.6 billion ($108.1 million), despite pressure from inflation, currency volatility, and tighter operating conditions across key markets. If sustained through the year, that pace would place annual profit at N586 billion ($432 million), well ahead of the N404.69 billion ($298.4 million) reported for full-year 2025. That earlier result was hurt by major one-off charges, including a N331 billion ($244.1 million) loan loss provision and N227 billion ($167.5 million) in derivative fair value adjustments. Those charges significantly weakened earnings and raised concerns about asset quality and risk exposure.

UBA shows stronger FX, credit recovery

In the first quarter of 2026, pressure from foreign exchange losses eased while credit quality began to improve. One of UBA’s biggest setbacks in 2025 was a net trading and foreign exchange loss of N140.5 billion ($103.7 million), which weighed heavily on earnings. By the first quarter of 2026, that position had reversed, with the bank reporting a gain of N35.21 billion ($26 million). The turnaround suggests stronger balance sheet management and a stable foreign exchange environment.

Analysts have maintained a BUY and HOLD rating, noting that UBA’s latest results suggest the worst of the stress seen in late 2025 may have eased. They said the numbers point to improving underlying fundamentals and stabilising risk exposures. “If UBA can sustain this run rate, 2026 should be a much healthier year for the bank than 2025,” the analysts said, adding that first-quarter performance indicates a sharp slowdown in losses tied to foreign exchange exposure and major credit impairments. They further noted that the recent trends reflect stronger earnings resilience and improving asset quality across the group’s core operations.

Credit costs also show a change in direction. Impairment charges came in at N41.24 billion ($30.43 million) for the quarter. On an annual basis, that suggests about N165 billion ($121.8 million), roughly half the level seen the previous year. The slower pace of write-downs points to improving loan performance and a more cautious approach to risk.

UBA expands global banking reach; deposits rise, equity strengthens

Beyond earnings, the bank’s balance sheet remained steady. Customer deposits rose to N24.14 trillion ($17.8 billion) from N23.94 trillion ($17.66 billion) at the end of December 2025, while total assets held firm at N33.13 trillion ($24.44 billion), compared with N33.17 trillion ($24.47 billion) at year-end. Shareholders’ equity also improved slightly to N4.31 trillion ($3.17 billion) from N4.25 trillion ($3.13 billion), showing that the group is rebuilding capital internally and retaining more earnings.

With operations in more than 30 countries across four continents, including the United Kingdom, the United States, France and the United Arab Emirates, UBA remains the only African banking group offering wholesale banking services in both New York and London, giving it a distinct edge among regional lenders. As of Dec. 31, 2025, Elumelu held 6.31 billion shares in UBA through direct and indirect interests, up sharply from 2.54 billion shares a year earlier.