UBA Ghana maintained a strong balance sheet, robust liquidity and improved asset quality in the first quarter of 2026 despite recording lower profitability as rising operating costs and weaker interest income weighed on earnings, according to the latest First Quarter 2026 Credit Assessment Report by Tesah Capital, a wealth management, investment and pensions firm.
The report said although the bank’s profit after tax fell by 18.6% year-on-year, its liquidity, capital adequacy, loan growth and sharp improvement in non-performing loans demonstrated resilience and positioned it to continue meeting its financial obligations.
Profitability declines
According to the report, UBA Ghana’s profit after tax declined from GH¢74.19 million in the first quarter of 2025 to GH¢60.41 million in the corresponding period of 2026, representing an 18.6% year-on-year decrease.
Tesah Capital attributed the decline primarily to lower interest income and higher operating expenses during the period.
Interest income fell by 15.9% from GH¢270.47 million to GH¢227.45 million, while employee benefit expenses increased sharply by 63.8% to GH¢53.93 million.
Despite the decline in overall earnings, the bank posted strong growth in its non-interest income.
Net trading and revaluation income surged by 155.9% from GH¢14.22 million in the first quarter of 2025 to GH¢36.38 million in the first quarter of 2026.
Net fees and commission income also rose by 33.1% to GH¢23.04 million, reflecting stronger transaction volumes and improved fee-generating activities.
The report further noted that the bank expanded its loan portfolio significantly during the period.
Loans and advances to customers increased by 34.4% year-on-year to GH¢1.29 billion from GH¢957.53 million, reflecting improved lending activities and increased customer financing.
However, operating efficiency weakened as personnel costs increased.
The bank’s cost-to-income ratio rose from 40.6% in the first quarter of 2025 to 45.5% in the first quarter of 2026, indicating that operating expenses grew faster than income.
Nevertheless, Tesah Capital said profitability indicators remained relatively resilient, supported by stronger capitalisation and continued growth in interest-earning assets.
Liquidity remains strong
The report highlighted a significant strengthening in UBA Ghana’s liquidity position during the review period.
Its liquidity ratio improved from 76% in the first quarter of 2025 to 107.7% in the first quarter of 2026, reflecting stronger short-term funding capacity and improved liquid asset coverage.
Customer deposits recorded modest growth of 1.5%, increasing from GH¢8.15 billion to GH¢8.27 billion.
The report said this was complemented by a substantial expansion in investment securities, which grew by 36.4% year-on-year to GH¢6.37 billion, strengthening both the bank’s liquidity buffer and income-generating asset base.
UBA Ghana also reduced its dependence on borrowed funds.
Total borrowings declined by 39.3% from GH¢601.78 million to GH¢365.46 million during the period.
The bank’s capital position also strengthened considerably.
Its Capital Adequacy Ratio (CAR) improved from 15.2% in the first quarter of 2025 to 22.7% in the first quarter of 2026, remaining comfortably above the regulatory minimum requirement.
Asset quality improves sharply
Tesah Capital reported a significant improvement in the quality of UBA Ghana’s loan book, driven by prudent credit risk management and stronger recovery efforts.
The bank’s gross non-performing loan (NPL) ratio declined sharply from 13.5% in the first quarter of 2025 to just 2.2% in the first quarter of 2026, indicating a substantial reduction in impaired loans.
Total assets rose marginally by 1.6% from GH¢10.65 billion to GH¢10.82 billion.
According to the report, the increase was mainly supported by higher investment securities as well as growth in loans and advances.
The bank also recorded an improvement in its leverage ratio, which increased from 9.4% to 12.7% over the period, reflecting stronger capital support relative to its total exposure.
Recommendation
Based on its assessment, Tesah Capital concluded that UBA Ghana remains financially sound, liquid and well-capitalised, with sufficient financial strength to support its obligations.
The firm said the sharp decline in the bank’s non-performing loan ratio reflected improved asset quality and stronger credit risk management.
Although profitability weakened because of higher operating costs and lower interest income, the report noted that UBA Ghana continued to maintain a strong balance sheet supported by growth in loans, investment securities and trading income.
Consequently, Tesah Capital recommended short-term fixed deposit investments with UBA Ghana while it continues to monitor the bank’s earnings recovery and the sustainability of its improved asset quality.
