October 31, (THEWILL) — Nigeria’s banking landscape continues to show resilience as the United Bank for Africa (UBA) announced gross earnings of N2.47 trillion for the nine months ended September 30, 2025. The results, published in the bank’s unaudited financial statements filed with the Nigerian Exchange Limited (NGX) on Thursday, confirm the bank’s ability to sustain growth despite tight macroeconomic conditions.
The bank’s gross earnings climbed modestly from N2.40 trillion reported in the same period last year, while Profit After Tax (PAT) increased by approximately 2.3% to settle at N537.5 billion, up from N525.3 billion in the corresponding prior-year period.
The uptick in UBA’s financial performance was primarily underpinned by its strong interest-bearing assets and expanding operations across its extensive African footprint. Interest income surged to N1.98 trillion, a significant jump from N1.80 trillion a year earlier, driven largely by higher yields from both investment securities and customer loans.
However, the bank simultaneously navigated a higher cost of funds, reflected in the climb of corresponding interest expenses to N808.7 billion, up from N695.6 billion.
The financial statement also highlighted the bank’s strategic decision to scale its balance sheet and reinforce its capital base. Total assets grew to N32.49 trillion as of September 2025 (up from N30.32 trillion at year-end 2024), while Shareholders’ funds increased to N4.3 trillion (from N3.4 trillion). The bank’s internal strength was further signalled by a 9.8% increase in retained earnings, which stood at N1.77 trillion, pointing to sustained reinvestment of profits.
UBA’s performance comes amid Nigeria’s challenging monetary environment, which is marked by persistent inflation, currency volatility, and elevated interest rates. Despite these macroeconomic headwinds, UBA maintained stable earnings, supported by prudent risk management and growth in non-funded income and digital innovation.
Regarding legal matters, the bank disclosed its involvement in 1,766 legal cases, a slight increase from 1,703 in 2024. Encouragingly, the estimated total amount claimed in these matters decreased substantially to N942 billion from N1.325 trillion the prior year. Directors expressed confidence that no significant additional liabilities are expected beyond existing provisions.
The relatively modest 2.3% PAT growth relative to the total gross earnings underscores the ongoing margin pressures and high-cost environment facing Nigerian banks. The bank’s strategy to retain profits aligns with broader industry trends as institutions prepare for potentially tighter capital requirements and sustained economic volatility. Analysts suggest that UBA’s next phase of value creation will heavily depend on achieving greater efficiency gains and rigorous cost control.
Ogochukwu Onwaeze
