United Bank for Africa has declared an interim dividend of 25 kobo per share for the first half of 2025 — its lowest payout in three years, but still a positive surprise for investors braced for no dividend at all.
In June, the Central Bank of Nigeria restricted banks with outstanding “forbearance” loans from paying dividends, bonuses, or attracting new foreign capital. UBA was among the banks constrained by those rules. Against that climate, many investors did not expect a payout soon.
The bank’s 25 kobo payout contrasts sharply with the trajectory of recent years. UBA raised its interim dividend from 20 kobo in 2022 to 50 kobo in 2023, then stunned the market in 2024 with a 300% jump to ₦2.00. Investors had anticipated another blockbuster. Instead, the board opted for caution.
That caution comes despite a strong financial showing. UBA posted group profit of ₦335.5 billion for the six months to June 30, with profit before tax at ₦388.4 billion. Total assets rose to ₦33.27 trillion and deposits to ₦24.19 trillion. A ₦234 billion rights issue also reinforced capital buffers.
Yet management pointed to rising provisions and persistent asset-quality pressure. Loan impairment charges stayed high, even as lending expanded. Much of the profit momentum came from trading and treasury operations. Interim accounts also flagged non-controlling interests of ₦112.85 billion, underlining the bank’s broad African footprint.
Gross loans and advances stood at about ₦7.21 trillion (carrying amount), with provisions still significant. Management said it remains focused on balancing growth with tighter credit risk oversight across markets.
For investors, the 25 kobo payout may feel meager compared with last year’s record. But in the shadow of CBN’s clampdown, the dividend signals resilience — and for many, it is better than none at all.
Editor’s Note: This report was updated.
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