UBA delivers core income growth in Q1 2026
United Bank for Africa Plc (UBA) has released its unaudited financial results for the first quarter (Q1) ended March 31, 2026, demonstrating resilient operating performance and continued balance sheet strength despite a moderated profitability environment.
Gross earnings increased by five per cent to N801.5 billion, driven by growth across key revenue lines. Interest income also rose 6.9per cent to N641.1 billion, while non-interest income grew 17.3per cent to N137.1 billion, highlighting the Group’s expanding and diversified revenue base.
Net interest income advanced 10.5per cent to N383.7 billion, supporting a 12.2per cent increase in operating income to N520.8 billion, demonstrating sustained momentum across core banking operations.
UBA recorded notable improvement in key profitability and efficiency metrics, reflecting a more sustainable earnings profile.
While return on average equity rose to 13.7per cent, return on assets improved to 1.77per cent, signalling stronger earnings efficiency. Cost of risk declined significantly to 2.02per cent, underscoring improved asset quality and disciplined risk management. Cost of funds moderated to 3.73per cent from 3.83per cent in Dec 2025, reflecting improvement in funding cost.
Profit before tax moderated to N160.7 billion, while profit after tax moderated to N146.6 billion, representing declines of 21.4per cent and 22.8per cent respectively, consistent with the Group’s guidance on earnings normalisation.
The bank also did well in maintaining a strong and resilient balance sheet with total assets of N33.1 trillion and customer deposits of N26.2 trillion.
Commenting on the results, Group Managing Director/CEO, Oliver Alawuba, said: “UBA’s Q1 2026 performance underscores the strength of our diversified Pan-African model and the resilience of our core banking franchises. While profitability has moderated in line with our expectations for a transition year, we are seeing strong underlying momentum across our markets, supported by improved earnings quality and disciplined risk management.
Our continued investments in digital capabilities and regional expansion are enhancing revenue resilience and positioning the Group for sustainable long-term growth. We remain firmly committed to driving financial inclusion, enabling intra-African trade, and delivering superior value to our stakeholders.”
Also speaking, Executive Director, Finance & Risk Management, Ugo Nwaghodoh, added: “The Group’s Q1 performance reflects a deliberate shift towards a more sustainable and scalable earnings profile following our successful recapitalisation. Key profitability indicators, including return on equity and return on assets, show improvement on a year-to-date basis, despite the normalisation of headline earnings. Our balance sheet remains robust, supported by a diversified funding base and disciplined loan growth. With stable funding costs and improving asset quality, we are well positioned to drive operating leverage and long-term value creation.”
UBA expects 2026 to remain a transition year characterised by continued investment in digital transformation and operational scalability; strengthened risk management and provisioning frameworks; enhanced focus on high-quality, sustainable earnings and deeper penetration across African markets.
The Group remains strongly capitalised, highly liquid, and strategically positioned to execute its long-term growth agenda.
