United Bank for Africa (UBA) Plc has committed to resuming dividend payments in 2026, despite recording a 47.3% decline in pre-tax profit for the 2025 financial year.
The bank’s audited results show profit before tax fell to ₦423.4 billion from ₦803.7 billion in 2024, primarily due to aggressive loan reclassifications and the expiration of regulatory forbearance.
Group Managing Director Oliver Alawuba assured shareholders that intensifying debt recovery efforts remains a priority to improve asset quality and clear the path for immediate cash returns to investors.
“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.” He said in an interview with Arise TV
The profit dip was largely driven by ₦331 billion in loan loss provisions and ₦278 billion in fair value losses on derivatives following significant foreign exchange market volatility.
Despite the bottom-line contraction, UBA’s balance sheet remains robust, with total assets growing 9.4% to ₦33.2 trillion and customer deposits increasing 11.8% to reach ₦27.2 trillion.
The bank’s capital position was bolstered by a successful ₦395 billion rights issue, which was oversubscribed, reflecting strong investor confidence amid the Central Bank of Nigeria’s mandatory recapitalization exercise.
This recovery plan follows a volatile period for Nigerian lenders, who faced a 2024 windfall tax on FX gains and a directive to raise minimum capital to ₦500 billion.
By cleaning its balance sheet now, UBA aims to align with the CBN’s “Tier-1” safety requirements while ensuring that future earnings are sustainable and available for distribution.
The bank’s shareholders’ funds rose 24.4% to ₦4.25 trillion, providing a significant buffer as the institution transitions into its next growth phase across its twenty African subsidiaries.
Management maintains that the 2025 results represent a strategic “reset” designed to protect long-term value, with debt recovery expected to drive a profit rebound in the coming quarters.
