April 27, (THEWILL) — United Bank for Africa (UBA) Plc says it is intensifying efforts to recover outstanding loans and expects to resume dividend payments to shareholders in 2026, despite a sharp decline in profit triggered by a major one-off loan provision.
The bank’s audited results for the year ended December 31, 2025, showed pre-tax profit dropped to ₦423 billion, down from ₦804 billion recorded in 2024. According to UBA Group Managing Director and CEO, Oliver Alawuba, the decline was largely driven by a ₦331 billion provision for bad loans, taken in compliance with regulatory directives.
Speaking in an interview with Arise TV, Alawuba said the bank is actively pursuing loan defaulters and expects recoveries to normalise its non-performing loan ratio, creating room to restore dividend payments.
“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,” he said, noting that the elevated loan provision was a one-off adjustment.
Despite the decline in profit, the bank recorded strong revenue growth. Gross earnings rose to ₦3.09 trillion, supported by growth in both interest and non-interest income. Interest income increased by 9.84 percent to ₦2.65 trillion, with investment securities contributing ₦1.47 trillion, or about 56 percent of total interest income.
UBA’s balance sheet also remained strong, with deposits expanding by 11 percent to ₦23.95 trillion.
Alawuba added that with shareholders’ funds of ₦4.3 trillion, a capital adequacy ratio of 23.2 percent, and operations spanning 24 countries, the bank remains well positioned for loan growth as economic conditions improve.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
