United Bank for Africa (UBA) Q2 2025 earnings summary

Executive summary

• H1 2025 gross earnings rose 17.28% YoY to ₦1.608tn; PAT increased 6.06% to ₦335.5bn, while PBT fell 3.28% to ₦388.4bn.

• Total assets grew 9.71% from FY2024 to ₦33.27tn; deposits rose 11.96% to ₦27.60tn and shareholders’ funds increased 23.34% to ₦4.22tn.

• Ex-Nigeria revenue grew 15% and represented 53% of total revenue.

• Phase I of the rights issue raised ₦234.3bn; an interim dividend of ₦0.25 per share was proposed.

Financial highlights

• Interest income increased 32.89% YoY to ₦1.334tn; net interest income rose 14.59% to ₦773bn.

• Operating income was ₦940.8bn, up 0.45% YoY; operating expenses rose 9.61% to ₦520.4bn.

• Non-interest income declined 25.35% to ₦274.3bn; net trading and FX loss was ₦10bn versus a ₦98bn gain in H1 2024.

• Impairment charges fell 46.9% YoY to ₦32bn; loan impairment charges were ₦35.2bn.

• Basic EPS was ₦8.86 versus ₦8.90 in H1 2024.

Outlook and guidance

• FY2025 deposit growth guidance was revised to 20% from 45% (H1: 9.7%); loan growth guidance to 10% from 20% (H1: 3.1%).

• Cost-of-risk guidance was revised to 1.5% from 2.8% (H1: 0.9%); NPL guidance remained 6.5% (H1: 5.8%).

• ROAE guidance was revised to 20% from 25% (H1: 17.6%); ROAA guidance remained 2.4% (H1: 2.1%).

• Capital adequacy guidance was revised to 30% from 28% (H1: 37.1%); cost-to-income guidance to 54% from 50% (H1: 54.7%).

• NIM guidance was revised to 7.5% from 8.5% (H1: 7.03%); priorities include disciplined risk management, efficiency and digital-led income growth.