UBA H1:2025 Earnings | Interest Income and Lower Impairments Support Bottomline
UBA delivered resilient earnings in H1:2025, with gross earnings up 17.28% YoY to NGN1.61trn, largely supported by a strong 32.89% YoY growth in interest income on loans and investment securities. However, higher interest expense (+70.43% YoY) and weaker non-interest income (-25.35% YoY) pressured overall performance. Despite cost discipline, Cost to Income ratio rose to 55.32%. PAT grew 6.06% YoY to NGN335.53bn, helped by lower impairment charges (-39.97% YoY).Balance sheet strength was evident with deposits up 11.96% YoY to NGN27.60trn, borrowings down 48.91%, and asset quality improving (cost of risk at 0.97%). Interim dividend was cut to NGN0.25/share, reflecting regulatory pressure, though UBA’s fundamentals remain solid with a Pan-African diversification buffer.
ARM Securities Limited is a full-service brokerage house that offers best-in-class brokerage services to local as well as foreign private and institutional investors. Formerly known as Hamilton Hammer, the Company commenced operation in 1994 and was acquired by ARM Investment Managers in 2008--an acquisition which has successfully re-positioned the company as a recognized brokerage firm in Nigeria. The Company is a dealing member of the Nigerian Stock Exchange (NSE) and is regulated by Securities and Exchange Commission (SEC). ARM Securities research team provides insightful commentaries on the Nigerian economy and its equity and debt markets using an approach which incorporates a thorough understanding of the fundamentals of the industries and companies under coverage. The research therefore adopts an integrated methodology of top-down analysis and bottom-up stock selection, which focuses on publicly quoted companies on the Nigerian Stock Exchange that are judged to offer the highest potential for earnings growth. In addition, its analysts provide periodic commentaries on a range of topical global and local issues which provide investing clients with a holistic view of the opportunities and risks in today’s financial market landscape.
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