United Bank for Africa (UBA) has announced intensified efforts to recover outstanding loans while confirming plans to resume dividend payments to shareholders this year, despite reporting a sharp decline in profitability for the 2025 financial year.
The bank’s audited results for the year ended December 31, 2025, showed a 47 per cent drop in pre-tax profit, which fell to N423 billion from N804 billion recorded in 2024.
Speaking in an interview on Arise Television, Group Managing Director and CEO Oliver Alawuba attributed the decline largely to a one-off N331 billion provision for bad loans, taken in compliance with regulatory requirements.
According to him, the bank is now aggressively pursuing loan recovery efforts to improve its non-performing loan (NPL) ratio and restore conditions necessary for dividend payments.
“We’re going after these defaulting customers and there are signs that they are paying back. Once they do, we’ll be in a position to pay dividends for this year,” Alawuba said.
He explained that the suspension of final dividend payments last year followed directives from the Central Bank of Nigeria requiring banks to exit the forbearance loan window, prompting UBA to make significant provisions.
Despite the profit drop, the bank recorded strong underlying performance, with gross earnings rising to N3.09 trillion, driven by growth in both interest and non-interest income.
Interest income rose by nearly 10 per cent to N2.649 trillion, with investment securities contributing N1.47 trillion, or 56 per cent of total interest income. Treasury bills generated over N805 billion, while bond income surged 45 per cent to N653 billion.
Loans and advances to customers also remained a major contributor, generating N889 billion, representing about a third of total interest income.
The bank’s deposit base expanded by 11 per cent to N23.949 trillion, strengthening its balance sheet position, while cash and bank balances rose to N185 billion.
Like several other lenders in Nigeria, United Bank for Africa was impacted by the expiration of the Central Bank of Nigeria’s forbearance programme, which triggered higher loan loss provisions across the industry.
However, its international operations helped cushion the impact, delivering a combined profit of N312 billion. West Africa operations grew by 53 per cent, while East and Central Africa recorded a 61 per cent increase in profit.
Despite short-term headwinds, the bank says its recovery strategy, strong liquidity position, and expanding regional footprint position it for improved performance and potential dividend restoration in the current financial year.
