UBA explains 2025 dividend decision, reaffirms strong recovery outlook for 2026
United Bank for Africa (UBA) Plc on Monday provided clarity on its 2025 financial performance and the decision not to declare a final dividend, following comments by its Group Managing Director/Chief Executive Officer, Oliver Alawuba, during a television interview.
Addressing investor concerns, Alawuba emphasized that UBA’s dividend track record remains strong, underpinned by consistent double-digit yields in recent years. The Bank paid a total dividend of N2.80 per share in 2023 and N3.25 per share in 2024, reflecting its commitment to shareholder value.
However, he explained that the 2025 financial year presented unique regulatory-driven challenges. A directive by the Central Bank of Nigeria required banks to exit the regulatory forbearance loan window and fully align with prudential loan classification standards.
“Exiting the forbearance regime necessitated the reclassification of certain credit exposures and the recognition of significant provisions. In 2025, UBA prudently provided approximately N1.021 trillion, which temporarily elevated our non-performing loan ratio beyond the threshold required for dividend distribution,” Alawuba stated.
He noted that the decision not to declare a final dividend for 2025 reflects the Bank’s disciplined risk management approach and adherence to regulatory standards, rather than any deterioration in its underlying franchise strength.
UBA confirmed that it is actively pursuing recovery of impacted loan exposures and has instituted robust mechanisms to drive collections and restructuring. These efforts are expected to result in write-backs as recoveries materialize, supporting a normalization of asset quality metrics.
“The good news is that these are recoverable assets. As we make progress on recoveries, we expect to see improvements in our non-performing loan ratio and position the Bank for a return to dividend payments,” Alawuba added.
Providing an outlook for the current financial year, Alawuba highlighted encouraging early indicators from the Bank’s 2026 performance. UBA recorded approximately 2% loan growth in the first quarter of 2026, marking a recovery from the flat growth seen in 2025.
The Bank also continues to benefit from a strong funding base, with customer deposits of N27.2 trillion compared to a loan book of approximately N7 trillion, creating significant headroom for risk-calibrated lending expansion.
“With improving macroeconomic conditions and expectations of moderating interest rates, we see a supportive environment for credit growth. Our conservative balance sheet positioning ensures that we can scale lending responsibly while enhancing profitability,” he said.
UBA reaffirmed its long-standing commitment to delivering sustainable shareholder returns and expressed confidence in its ability to resume dividend payments as asset quality metrics improve.
“Our priority is to protect the long-term value of the institution while navigating regulatory changes responsibly. We remain confident that 2026 will mark a return to stronger profitability and dividend capacity,” Alawuba concluded.
UBA has announced its audited financial results for the year ended December 31, 2025 recording total assets growth of 9.4 per cent to N33.2 trillion up from N30.3 trillion at the end of 2024, alongside an 11.8 per cent increase in customer deposits from N24.3 trillion in 2024 to N27.2 trillion.
The results released to the Nigerian Exchange Limited on Friday, showed that the Group also delivered strong gross earnings of N3.09 trillion from N3.19 trillion recorded the previous year. Although recording a slight drop in gross earnings, the performance was still strengthened by resilient core business fundamentals and a diversified Pan-African footprint, even as the year reflected a strategic repositioning of its balance sheet for sustainable long-term growth.
UBA had in its Audited 2025 Half Year Results, declared an interim dividen of N.25k per share
United Bank for Africa Plc is a leading pan-African financial services group with operations in 20 African countries and international offices in key global financial centres, providing retail, commercial and institutional banking services to millions of customers worldwide.
