UBA Kenya Roars Back, Q1 Profits Hit Ksh 120.9 Million

UBA Kenya delivered a strong start to 2026, recording significant growth across profitability, lending, customer deposits, and overall balance sheet performance. The Q1 2026 results reflect the Bank’s continued transformation journey, stronger customer confidence, and growth.

The bank reported a Profit Before Tax of KES 120.9 million in Q1 2026, compared to a loss of KES 12.3 million in Q1 2025. The performance was driven by growth in the loan book and increased customer transaction volumes.

The lender’s total operating income more than doubled to KSh414.3 million in the first quarter of 2026, compared to KSh200.4 million reported a year earlier. The impressive growth was driven by a significant expansion in both interest income and non-funded income streams, reflecting stronger business activity and improved asset utilization.

Interest income rose by 75.1 percent to KSh390.5 million from KSh223.0 million recorded in the first quarter of 2025. The growth was largely supported by increased earnings from loans and advances, which surged to KSh109.9 million from KSh20.7 million, as well as higher returns from government securities and placements with banking institutions. Income from deposits and placements climbed to KSh171.9 million from KSh138.7 million, while earnings from government securities increased to KSh104.7 million from KSh60.9 million.

Despite the rise in funding costs, UBA Kenya maintained healthy margins. Interest expenses declined to KSh103.0 million from KSh113.8 million in the comparable period, enabling net interest income to more than double to KSh287.5 million from KSh109.2 million. This translated into a 163 percent increase in the bank’s core earnings, highlighting improved efficiency in managing interest-bearing assets and liabilities.

Non-interest income also registered strong growth, rising by 39 percent to KSh126.8 million from KSh91.2 million. Foreign exchange trading income emerged as a key contributor, increasing to KSh47.0 million from KSh20.2 million, while other income rose to KSh47.6 million from KSh35.4 million. The diversified income mix helped cushion the bank against market volatility and strengthened overall revenue generation.

The Bank’s Net Loans and Advances to Customers grew to KES 7.24 billion as at Q1 2026 from KES 839.8 million in Q1 2025, reflecting strong balance sheet expansion and a 762% year-on-year growth. The growth reflects increased support to SMEs and corporates and growing customer confidence in the Bank’s financing capabilities.

UBA Kenya also strengthened its capital position during the quarter. Shareholders’ funds increased to KSh3.14 billion from KSh1.48 billion a year earlier, while core capital rose above the Central Bank of Kenya’s minimum statutory capital requirement of KSh3 billion. The Bank continued to strengthen its capital position, with Core Capital increasing to KES 3.04 billion, supported by shareholder capital injection and profit retention.

The Bank’s Total Assets grew to KES 21.32 billion as at Q1 2026 from KES 11.99 billion in Q1 2025, reflecting a 78% year-on-year increase. At the same time, the balance sheet growth was primarily driven by strong customer deposit mobilization, with customer deposits increasing from KES 9.4 billion in Q1 2025 to KES 15.9 billion in Q1 2026, providing funding support for asset growth, including expansion of the loan portfolio and improved liquidity positioning.

The first-quarter results demonstrate that UBA Kenya’s recovery momentum remains firmly on track. With strong income growth, improved profitability, expanding customer deposits, and a strengthened capital base, the lender appears well-positioned to build on the gains achieved in 2025 and accelerate its growth ambitions in the Kenyan banking sector.

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