UBA delivered higher gross earnings and operating income in Q1 2026 but reported lower profit and weaker comprehensive income versus Q1 2025, while maintaining a strong balance sheet with slightly higher equity and broadly stable total assets.

Profit and performance (3 months to 31 Mar 2026)

• Gross earnings: ₦801.5bn (up ~4.9% from ₦764.3bn in Q1 2025).

• Profit before tax: ₦160.7bn (down from ₦204.3bn).

• Profit for the period: ₦146.6bn (down from ₦189.8bn).

• Profit attributable to owners: ₦137.6bn vs ₦183.0bn in prior year.

• Basic EPS: ₦3.11 vs ₦5.35, reflecting lower earnings per share despite the rights issue in 2025 increasing share count.

Key drivers in the income statement:

• Net interest income rose to ₦383.7bn from ₦347.3bn, driven by higher interest income (₦641.1bn vs ₦599.8bn) while interest expense also increased slightly.

• Net fee and commission income improved to ₦87.6bn (₦76.6bn prior year), mainly via higher account maintenance and some transactional income, but commissions on transactional services fell sharply.

• Total non‑interest income rose to ₦137.1bn from ₦117.0bn, supported by other operating income but net trading/FX was broadly flat.

• Impairment charges increased significantly: credit losses on loans ₦38.2bn vs ₦11.1bn, plus other financial assets ₦3.0bn.

• Operating expenses grew materially to ₦319.0bn (₦245.8bn), mainly from staff costs, IT, advertising/branding, contract services and fuel/maintenance.

Comprehensive income deteriorated because of FX translation and fair‑value movements:

• Other comprehensive loss (net of tax): ₦(88.9)bn vs income of ₦66.6bn last year.

• Exchange differences on translation of foreign operations swung from +₦39.9bn to –₦128.1bn.

• FVOCI fair‑value gains (debt and equity) totalled ₦39.2bn vs ₦26.7bn.

• Total comprehensive income for the period: ₦57.7bn vs ₦256.5bn.

Balance sheet position (31 Mar 2026 vs 31 Dec 2025)

Scale and structure:

• Total assets: ₦33.13tn (slightly down from ₦33.17tn).

• Total liabilities: ₦28.82tn (down from ₦28.92tn).

• Total equity: ₦4.31tn (up from ₦4.25tn), with equity attributable to owners at ~₦4.18tn.

Major asset movements:

• Cash and bank balances: ₦8.80tn (₦8.95tn Dec 2025).

• Loans to customers: ₦7.17tn (up from ₦7.02tn), even after credit loss allowances.

• Loans to banks: ₦648.4bn (₦437.5bn), showing increased interbank placements.

• Investment securities total (FVOCI + amortised cost): ₦13.67tn vs ₦14.43tn, reflecting a shift from amortised cost to FVOCI and some rundown/redemptions.

• Other assets increased to ₦1.77tn from ₦1.40tn, notably higher dividends receivable and receivables balances.

Major liability movements:

• Deposits from customers: ₦24.14tn (slightly higher than ₦23.95tn); growth came mainly from retail savings and corporate term deposits.

• Deposits from banks fell sharply to ₦2.07tn from ₦3.26tn, reducing wholesale funding reliance.

• Borrowings decreased modestly to ₦886.5bn from ₦923.7bn, largely due to principal repayments and FX effects.

• Other liabilities jumped to ₦1.58tn from ₦619.8bn, driven by higher creditors/payables and accrued expenses, partly offset by lower litigation provisions and lease liabilities.

Equity and reserves:

• Retained earnings rose to ₦1.40tn (₦1.27tn), reflecting current‑period profits.

• Other reserves decreased to ₦2.27tn from ₦2.35tn, mainly due to negative FX translation reserves despite fair‑value gains.

• No dividend was declared for the three‑month period.

Key balance sheet ratios (directional)

While ratios are not explicitly provided, the data imply:

• Loan‑to‑customer‑deposit ratio is in the 30–35% zone (loans ₦7.17tn vs customer deposits ₦24.14tn), indicating good liquidity headroom.

• Equity‑to‑assets ratio is around 13%, suggesting a solid capital buffer.

Cash flow highlights (3 months to 31 Mar 2026)

• Net cash used in operating activities: ₦(2.16)tn vs net inflow of ₦427.2bn in Q1 2025.

  • This reflects large outflows from changes in trading assets, placements, loans and other assets, partly offset by growth in customer deposits and significant interest received.

• Net cash from investing activities: ₦740.0bn inflow vs ₦(1.80)tn outflow last year, due to higher proceeds from sale/redemption of investment securities relative to purchases.

• Net cash used in financing activities: ₦(9.0)bn vs ₦(261.9)bn, with limited new borrowing and small repayments; prior year included large repayments and right‑issue transactions.

• Overall cash and cash equivalents decreased by ₦1.64tn in the period, from ₦4.81tn to ₦3.37tn, despite FX translation gains on cash.

Credit quality, risk and commitments

• Allowance for credit losses on customer loans totals about ₦486.0bn (Stage 1–3), indicating a cautious provisioning stance; allowances reduced slightly from December but quarterly impairment charge is high.

• Off‑balance sheet exposures are significant: performance bonds/guarantees and letters of credit total about ₦2.68tn nominal, with modest credit‑loss allowances (~₦2.0bn).

• Loan commitments are ₦850bn (up from ₦151.8bn), signalling a strong undrawn pipeline and future credit growth.

• Legal contingencies: 1,731 cases with claims of ~₦1.29tn; management expects no material loss beyond existing provisions.

Other notable disclosures

• The Group continues to apply IFRS Accounting Standards, with detailed policies on IFRS 9, IFRS 15, IFRS 16 and hyperinflation accounting for certain subsidiaries, notably Sierra Leone (Ghana exited hyperinflation status).

• IFRS 18, IFRS 19, and amendments to IAS 21, IFRS 9 and IFRS 7 are discussed; they are not yet effective but may change presentation and disclosures rather than measurement.

• Free float remains strong at about 79.3% of shares in issue, satisfying Premium Board listing requirements.

Would you like a more analytical take, for example a management‑style commentary focusing on profitability drivers (margin vs cost vs impairments) or on capital and liquidity metrics from these numbers?