UBA MD Speaks On Dividend To Shareholders

United Bank for Africa, UBA Plc, has explained why the commercial bank did not declare dividends for its shareholders in its 2025 financial year, saying the bank faced some headwinds during the last financial year.
The bank also blamed the development on the directive of the Central Bank of Nigeria, CBN to banks in the country to exit the “forbearance regime” which “necessitated the reclassification of certain credit exposures.”
The bank’s Group Managing Director, Oliver Alawuba made the revelations while speaking in a television interview, saying the lender has a strong record of paying dividends to its shareholders, having recorded double digit profits in the past years.
According to Alawuba, the bank showed its commitmet to shareholders by paying a total dividend of N2.80 per share in 2023 and N3.25 per share in 2024, adding however that the past 2025 financial year presented a unique challenge in the sector.
Alawuba: “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. In 2025, UBA prudently provided approximately N1.021 trillion, which temporarily elevated our non-performing loan ratio beyond the threshold required for dividend distribution.
The bank’s chief executive noted that the decision not to declare a final dividend for the last financial year has nothing with the commercial bank’s strength, rather, was done in adherence to regulatory standards, stressing that the lender remains strong with solid financial metrics to show.
“UBA recorded approximately 2 per cent loan growth in the first quarter of 2026, marking a recovery from the flat growth seen in 2025. The bank also continues to benefit from a strong funding base, with customer deposits of N27.2 trillion compared to a loan book of approximately N7 trillion, creating significant headroom for risk-calibrated lending expansion.
“With improving macroeconomic conditions and expectations of moderating interest rates, we see a supportive environment for credit growth. Our conservative balance sheet positioning ensures that we can scale lending responsibly while enhancing profitability,” he stated.