By NIyi Jacobs
United Bank for Africa (UBA) Plc has reaffirmed its commitment to rewarding shareholders, announcing plans to resume dividend payments in 2026 even as it grapples with a significant drop in profitability.
The bank disclosed that its pre-tax profit fell by 47% for the financial year ending December 31, 2025, according to its recently released audited results. Despite the sharp decline, UBA’s management remains optimistic about its financial outlook, pointing to strategic measures aimed at stabilizing earnings and strengthening its balance sheet.
Central to this recovery plan is an intensified effort to reclaim outstanding debts. The bank indicated it is taking a more aggressive stance on non-performing loans, with targeted recovery initiatives expected to improve asset quality and free up capital.
Industry analysts say the dual approach—tightening credit recovery while reinstating dividends—signals confidence from UBA’s leadership. It also reflects a broader push within the banking sector to maintain investor trust amid challenging macroeconomic conditions.
UBA emphasized that its long-term fundamentals remain strong, supported by its pan-African footprint and diversified revenue streams. The bank expressed confidence that improved loan recoveries and disciplined risk management will help restore profitability in the coming periods.
For shareholders, the planned dividend resumption offers a positive signal after a difficult financial year, suggesting that UBA is positioning itself for a more stable and rewarding phase ahead. Dip, Moves Aggressively on Debt Recovery
United Bank for Africa (UBA) Plc has reaffirmed its commitment to rewarding shareholders, announcing plans to resume dividend payments in 2026 even as it grapples with a significant drop in profitability.
The bank disclosed that its pre-tax profit fell by 47% for the financial year ending December 31, 2025, according to its recently released audited results. Despite the sharp decline, UBA’s management remains optimistic about its financial outlook, pointing to strategic measures aimed at stabilizing earnings and strengthening its balance sheet.
Central to this recovery plan is an intensified effort to reclaim outstanding debts. The bank indicated it is taking a more aggressive stance on non-performing loans, with targeted recovery initiatives expected to improve asset quality and free up capital.
Industry analysts say the dual approach—tightening credit recovery while reinstating dividends—signals confidence from UBA’s leadership. It also reflects a broader push within the banking sector to maintain investor trust amid challenging macroeconomic conditions.
UBA emphasized that its long-term fundamentals remain strong, supported by its pan-African footprint and diversified revenue streams. The bank expressed confidence that improved loan recoveries and disciplined risk management will help restore profitability in the coming periods.
For shareholders, the planned dividend resumption offers a positive signal after a difficult financial year, suggesting that UBA is positioning itself for a more stable and rewarding phase ahead.
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