UBA Joins GTCO, FirstHoldCo as Profit Drops for First Time in 13 Years
- Earnings slide marks end of windfall era
United Bank for Africa (UBA) has reported its first full-year profit decline in more than a decade, signalling a broader slowdown across Nigeria’s banking sector after two years of windfall gains.
Markets Reporters’ analysis of lender’s latest financial results shows profit after tax fell by 47.2 percent to N404.7 billion last year —its lowest level in three years. The last time earnings declined was in 2013, when profit dropped to N46.6 billion from N51.5 billion in the previous year.
Last year’s decline was driven by a steep drop in income from financial instruments and rising funding costs. Interest income on Fair Value Through Profit or Loss (FVTPL) securities, captured within net fair value gains, plunged by 87.6 percent to N9.21 billion.
At the same time, interest expenses surged to N1.03 trillion, up from N859.2 billion in the previous year, reflecting the high interest rate environment.
Sector-wide trend emerges
UBA’s earnings contraction mirrors a broader trend across Nigeria’s tier-one lenders, with GuarantyTrust Holding Company and FirstHoldCo also reporting declines in profit after years of strong growth.
The downturn marks a reversal from the bumper profits banks recorded in recent years, largely driven by gains from naira devaluations and aggressive monetary policy tightening by the Central Bank of Nigeria.
The softer earnings trajectory has extended into the current year. In the first quarter of 2026, the group reported profit of N146.6 billion, down from N189.8 billion in the same period of .
