United Bank for Africa Plc, a leading Pan-African financial institution, has released its unaudited financial results for the first quarter ended 31 March 2026, showing resilient operating performance and continued balance sheet strength despite a moderated profitability environment.

Gross earnings increased five per cent to N801.5bn, driven by growth across key revenue lines. Interest income rose 6.9 per cent to N641.1bn, while non-interest income increased 17.3 per cent to N137.1bn, reflecting the Group’s expanding and diversified revenue base. Net interest income advanced 10.5 per cent to N383.7bn, supporting a 12.2 per cent rise in operating income to N520.8bn, underscoring sustained momentum in core banking operations. UBA recorded notable improvement in key profitability and efficiency indicators, reflecting a more sustainable earnings profile.

Return on average equity rose 13.7 per cent, while return on assets improved 1.77 per cent, indicating stronger earnings efficiency. The cost of risk declined significantly to 2.02 per cent, reflecting improved asset quality and disciplined risk management.

Cost of funds also moderated 3.73 per cent from 3.83 per cent in December 2025, indicating improved funding efficiency. Profit before tax moderated to N160.7bn, while profit after tax declined to N146.6bn, representing decreases of 21.4 per cent and 22.8 per cent, respectively, consistent with the Group’s guidance on earnings normalisation. The bank maintained a strong and resilient balance sheet, with total assets of N33.1tn and customer deposits of N26.2tn.

Commenting on the results, Group Managing Director/CEO, Oliver Alawuba said, “UBA’s Q1 2026 performance underscores the strength of our diversified Pan-African model and the resilience of our core banking franchises. While profitability has moderated in line with our expectations for a transition year, we are seeing strong underlying momentum across our markets, supported by improved earnings quality and disciplined risk management. Our continued investments in digital capabilities and regional expansion are enhancing revenue resilience and positioning the Group for sustainable long-term growth. We remain firmly committed to driving financial inclusion, enabling intra-African trade, and delivering superior value to our stakeholders.”

Also speaking, Executive Director, Finance & Risk Management, Ugo Nwaghodoh, said, “The Group’s Q1 performance reflects a deliberate shift towards a more sustainable and scalable earnings profile following our successful recapitalisation. Key profitability indicators, including return on equity and return on assets, show improvement on a year-to-date basis, despite the normalisation of headline earnings. Our balance sheet remains robust, supported by a diversified funding base and disciplined loan growth. With stable funding costs and improving asset quality, we are well-positioned to drive operating leverage and long-term value creation.”

UBA expects 2026 to remain a transition year characterised by continued investment in digital transformation and operational scalability, strengthened risk management and provisioning frameworks, enhanced focus on high-quality sustainable earnings, and deeper penetration across African markets. The Group said it remains strongly capitalised, highly liquid, and strategically positioned to execute its long-term growth agenda. United Bank for Africa Plc serves over 45 million customers through 1,000 business offices and customer touchpoints in 20 African countries. With operations in New York, London, Paris, and Dubai, UBA connects people and businesses across Africa through retail, commercial, and corporate banking, payments, trade finance, and cross-border solutions.

The World Bank Group has committed $8.2bn to expand electricity access across Sub-Saharan Africa as part of a broader push to tackle one of the region’s most persistent development challenges, with nearly 600 million people still living without power.

The funding forms the backbone of “Mission 300”, a joint initiative with the African Development Bank Group aimed at connecting 300 million people to electricity by 2030. Under the plan, the World Bank targets 250m connections, while the African Development Bank is expected to deliver the remaining 50m.

The initiative, backed by a combination of public and private sector financing, has already mobilised an additional $1.2bn, with projects advancing across more than 40 countries and over 150 programmes underway, according to details published by the lender on its website.

Despite recent progress, access to electricity remains a major constraint on economic growth across the region. Without reliable power, hospitals struggle to function, agricultural productivity is limited, and businesses face high operating costs, undermining job creation and industrial development.

The World Bank said the programme is designed not only to expand access but also to drive broader economic transformation, linking electricity supply to job creation, digital connectivity, and industrial growth.

“Electricity is the bedrock of jobs, opportunity, and economic growth,” President of the World Bank Ajay Banga stated. “That’s why Mission 300 is more than a target; it is forging enduring reforms that slash costs, strengthen utilities, and draw in private investment.”

At the core of the initiative are National Energy Compacts, country-led reform frameworks intended to unlock investment, improve utility performance, and align policy with long-term energy goals. The programme also seeks to scale private sector participation through competitive procurement, regional power trade, and de-risking mechanisms.

The effort comes as development finance institutions intensify collaboration to address Africa’s energy deficit, widely seen as a critical barrier to inclusive growth. Access to electricity is expected to support small and medium-sized enterprises, agro-processing, manufacturing, and digital services, sectors seen as key to job creation across the continent.

“Reliable, affordable power is the fastest multiplier for small and medium enterprises, agro-processing, digital work, and industrial value-addition,” said African Development Bank Group President Sidi Tah. “Give a young entrepreneur power, and you’ve given them a pay cheque.”

Household access to electricity is also expected to improve living standards, enabling safer cooking, access to information, and better education outcomes, while strengthening healthcare delivery through reliable lighting and refrigeration for medicines.

The World Bank said connection rates under the programme are accelerating, running at about 1.5 times faster than previous efforts, as investments and reforms begin to take effect.

‘Mission 300’, the lenders say, is intended to lay the foundation for long-term energy systems capable of reaching even the most remote communities while supporting Africa’s transition towards more reliable and sustainable power infrastructure.

The Managing Director of Regent Microfinance Bank, Idris Olugbesan, has emphasised that the future of Small and Medium-scale Enterprises in Nigeria will depend largely on three critical factors, including access to capital, trust within the financial ecosystem, and the strategic use of technology.

He made this known at a media interaction on Tuesday where he discussed the evolving landscape for small businesses in Nigeria and the role financial institutions must play in supporting sustainable enterprise growth.

According to him, while SMEs remain the backbone of Nigeria’s economy—contributing significantly to employment—many still struggle with limited access to funding and the financial tools required to scale.

“Small businesses are central to economic growth in Nigeria, but their ability to grow sustainably depends on how effectively they can access capital, build trust with financial institutions, and leverage technology,” he stated.

Olugbesan noted that access to affordable and structured financing remains one of the primary barriers faced by Nigerian entrepreneurs. He explained that many SMEs operate informally or lack the documentation required to secure funding through traditional banking systems. Consequently, he urged financial institutions to design more inclusive products that reflect the realities of small business operations.

“SMEs require financing models that reflect the nature of their businesses. When financial products are designed around the real needs of entrepreneurs, it becomes easier for businesses to grow and contribute meaningfully to the economy’,” he added.

Beyond funding, the Regent Microfinance Bank boss emphasised the importance of trust between financial institutions and business owners. He noted that trust is the bridge that encourages entrepreneurs to migrate from informal setups to formal financial systems.

“Trust is fundamental to financial inclusion. When entrepreneurs trust financial institutions, they are more willing to adopt formal banking solutions that support long-term business growth,” he further explained.

He added that building this rapport requires transparency, responsible lending, and consistent customer engagement from financial institutions.

Olugbesan also highlighted the role of technology in transforming SME operations. He explained that digital banking, mobile payments, and automated management tools are helping businesses operate with greater efficiency.

“Technology is redefining how businesses interact with financial services. Digital platforms are making it easier for entrepreneurs to access banking services, monitor transactions, and manage their businesses in real time,” he added.

The MD stressed that strengthening the SME ecosystem requires a synergy between financial institutions, regulators, and business support organisations. He argued that providing capital alone is insufficient; entrepreneurs also need financial education and supportive policies.

“Nigeria’s economic future will depend significantly on the success of its small businesses. By strengthening access to finance, building trust in financial systems, and embracing technology, we can unlock the full potential of SMEs across the country.” Olugbesan noted.

He further noted that financial institutions must continue to innovate to empower entrepreneurs to build resilient businesses in an increasingly competitive global economy.