UBA plans 2026 dividend return as loan recovery efforts gain pace

United Bank for Africa Plc, one of Africa’s largest lenders, says it is stepping up efforts to recover overdue loans and expects to resume dividend payments in 2026, according to Group CEO Oliver Alawuba. The bank, chaired by Nigerian businessman Tony Elumelu, is working to put last year’s setbacks behind it as it reassures investors about payouts.

Speaking in Lagos, Alawuba said the decision to pause the final dividend followed a directive from the Central Bank of Nigeria requiring lenders to exit its forbearance window. To comply, UBA booked a one-off provision of N331 billion ($241.3 million), a move that weighed heavily on earnings but cleared a key regulatory hurdle.

UBA sees early repayment improvement

The bank is now focused on loan recoveries. Alawuba said UBA is engaging customers who fell behind on repayments, adding that early signs are encouraging. “We’re seeing some of them come back to regular payments,” he said. “Once that improves further, we should be able to return to dividend payments.” He added that the missed payout was tied to a higher-than-expected non-performing loan ratio, describing it as a temporary issue.

That pressure showed clearly in UBA’s 2025 results. Profit for the year dropped to N423 billion ($308.4 million), down from N804 billion ($586.3 million) in 2024, largely due to the N331 billion ($241.4 million) provision for bad loans. The bank also recorded a net trading and foreign exchange loss of N140.5 billion ($103.7 million), adding to the strain on earnings.

Early figures for 2026 suggest a steadier start. Gross earnings for the first quarter rose to N801.46 billion ($591.1 million), up from N764.31 billion ($563.7 million) a year earlier, supported by stronger interest income and contributions from operations across Africa and other markets. Profit after tax came in at N146.6 billion ($108.1 million), even as inflation and currency swings continued to affect operating conditions.

Profit outlook strengthens for 2026

If that pace is maintained, full-year profit could reach about N586 billion ($432 million), compared with N404.69 billion ($298.4 million) reported for 2025. Market watchers say the latest numbers point to a business that is stabilizing after a difficult period, with fewer losses linked to foreign exchange exposure and large credit charges.

The balance sheet also reflects a measure of stability. Customer deposits edged up to N24.14 trillion ($17.8 billion) from N23.94 trillion ($17.66 billion) at the end of December 2025. Total assets stood at N33.13 trillion ($24.44 billion), little changed from year-end levels, while shareholders’ equity rose to N4.31 trillion ($3.17 billion) from N4.25 trillion ($3.13 billion).