United Bank for Africa (UBA) Plc, yesterday clarified the reasons behind its decision not to declare a final dividend for the 2025 financial year, attributing the move to regulatory adjustments rather than weakening fundamentals.
The Group Managing Director and Chief Executive Officer, Oliver Alawuba, said the bank’s dividend history remains strong, noting that shareholders received N2.80 per share in 2023 and N3.25 per share in 2024.
Speaking during a television interview, Alawuba explained that the 2025 financial year was impacted by regulatory changes introduced by the Central Bank of Nigeria (CBN), which required banks to exit the regulatory forbearance loan window and fully comply with prudential loan classification standards.
According to him, the transition led to significant loan reclassification and provisioning.
“A directive by the Central Bank of Nigeria required banks to exit the regulatory forbearance loan window and fully align with prudential loan classification standards. Exiting the forbearance regime necessitated the reclassification of certain credit exposures and the recognition of significant provisions,” he said.
He disclosed that UBA made provisions of about N1.021 trillion in 2025, a development that temporarily pushed the bank’s non-performing loan ratio above the threshold required for dividend payment.
Despite this, Alawuba insisted the bank’s underlying business remains strong, stressing that the suspension of dividend payment reflects prudence and regulatory compliance rather than financial distress.
“The decision not to declare a final dividend for 2025 reflects disciplined risk management and strict adherence to regulatory standards, not any deterioration in the strength of the franchise,” he said.
He added that the bank is actively pursuing recovery of affected loan exposures, with structured efforts already underway to boost collections and loan restructuring.
“These are recoverable assets. As recoveries materialise, we expect write-backs that will improve asset quality metrics and position the bank for a return to dividend payments,” he said.
Looking ahead, Alawuba expressed optimism about the bank’s 2026 performance, citing early signs of recovery in lending activity and improved macroeconomic conditions.
According to him, UBA recorded about 2 per cent loan growth in the first quarter of 2026, reversing the flat growth trend seen in 2025.
He also highlighted the bank’s strong liquidity position, with customer deposits standing at N27.2 trillion compared to a loan book of approximately N7 trillion, describing it as a solid buffer for expanded but cautious lending.
“With improving macroeconomic conditions and expectations of moderating interest rates, we see a supportive environment for credit growth,” he said.
Alawuba reaffirmed the bank’s commitment to sustainable shareholder returns, expressing confidence that dividend payments would resume once asset quality indicators stabilise.
“Our priority is to protect the long-term value of the institution while navigating regulatory changes responsibly. We remain confident that 2026 will mark a return to stronger profitability and dividend capacity,” he said.