United Bank for Africa (UBA) recorded a modest growth of 6.1 per cent in net profit for the first half of the year, compared to the same period of 2024, according to its audited earnings report issued on Thursday.
The pan-African lender, which operates in 23 markets apart from its base Nigeria, recorded a 32.9 per cent surge in interest income as the resolve by the Central Bank of Nigeria to keep interest rate unchanged twice during the period left lending rates elevated.
However, a high interest expense caused net interest income, which stood at N773 billion, to only grow by 14.6 per cent.
UBA’s provision for loans and advances whose chances of repayment have become doubtful by reason of repeated defaults fell to N35.2 billion from N58.6 billion a year ago.
The bank incurred a loss of N10 billion from net trading and foreign exchange income, which compares to a gain of N98.2 billion in the corresponding period of last year. Net fee and commission income saw a flattish growth, advancing by 1.3 per cent to N147 billion.
In April, Chairman Tony Elumelu told shareholders at the bank’s annual general meeting that the financial institution would meet the new N500 billion minimum capital requirements for Nigerian lenders with international authorisation before the end of September.
The lender launched its rights issue, being the second tranche of its N400 billion equity shelf programme, in July, and this month extended the duration of the capital raise by two weeks to 19 September.
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Profit before tax for the period under review eased to N388.4 billion from N401.6 billion, while profit after tax increased to N335.5 billion from N316.4 billion. Total comprehensive income fell to N670.7 billion from N1 trillion.
UBA also announced on Thursday an interim dividend of N0.25 per share, 87.5 per cent weaker than what it paid a year earlier, translating into a potential payout of N10.3 billion.
Total assets rose to N33.3 trillion from N30.3 trillion as of last December.
