Prime Business AfricaThe interest income of the United Bank for Africa (UBA) grew to N599.83 billion in the first quarter (Q1) of 2025, up by 36.08 per cent from N440,76 billion in the corresponding period last year.
However, the interest income on loans advanced to customers and investment securities grew more slowly compared to the 77 per cent growth in the lender’s interest expense, which is the amount spent on deposits held for customers and other banks, as well as borrowed funds.
Join our WhatsApp ChannelThe interest expense increased from N140.08 billion recorded in the first quarter of 2024 to N247.95 billion in the same quarter in 2025, as deposits from banks grew by 37.23 per cent from N2.75 trillion recorded at the end of December 2024 to N3.78 trillion as of March 31, 2025.
Also, deposits from customers grew by 4.42 per cent from N21.89 trillion at the end of December 2024 to N22,86 trillion as of March 31, 2025.
The significant increase in interest expense led to UBA recording just a 17.02 percent year-on-year increase in its net interest income, which rose to N351.87 billion from N300.67 billion.
Nevertheless, the company’s financials were bolstered by a 211.19 per cent rise in net trading and foreign exchange income, as it increased from N11.90 billion in Q1 2024 to N37.03 billion in the same period in 2025.
After accounting for impairment losses and expenses, UBA closed the period under review with N204.26 billion profit before tax (PBT), up from N156.34 billion PBT reported in Q1 2024 – indicating a 30.65 per cent growth.
UBA’s bottom line was not greatly impacted by income tax, as the latter grew marginally by 4.81 percent year-on-year from N13.76 billion to N14.42 billion.
After accounting for income tax, UBA reported N189.84 billion net income in the first quarter of this year, increasing by 33.14 per cent compared to the N142.58 billion profit after tax (PAT) recorded in Q1 last year.
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Prime Business Africa is a business, economy and policy news platform founded in 2021 by veteran journalist and media scholar, Dr Marcel Mbamalu, after he left The Guardian as Editor.
Dr Mbamalu, who serves as Founder and Publisher, set up Prime Business Africa to deliver sharp, data-driven reporting on Nigeria’s markets, trade, investment, and governance trends for decision-makers, entrepreneurs, and policy leaders.
He also writes The Bottom Line, a backpage column for Punch Newspaper every Thursday.
Under his leadership, Prime Business Africa combines deep newsroom experience with a focus on accountability journalism, aiming to bridge information gaps between Africa’s private sector and the global economy.
