UBA’s 2025 Financial Results Highlight Resilience and Strategic Growth
United Bank for Africa Plc (UBA), a leading financial institution in Africa, has released its audited financial results for the year ended December 31, 2025. The bank reported significant growth in total assets, reaching N33.2tn, an increase of 9.4 per cent compared to N30.3tn at the end of 2024. Customer deposits also saw an impressive rise, growing by 11.8 per cent from N24.3tn in 2024 to N27.2tn.
The results were disclosed to the Nigerian Exchange Limited on Friday and reflected a mix of challenges and opportunities. Despite a slight decline in gross earnings, which dropped to N3.09tn from N3.19tn in the previous year, UBA’s performance was supported by strong core business fundamentals and a diversified Pan-African footprint. The bank’s strategic repositioning of its balance sheet for sustainable long-term growth played a key role in maintaining stability during a challenging economic period.
Impact of Risk Management Decisions
The 2025 performance was influenced by prudent risk management decisions, including loan loss provisions of N331bn and fair value changes on derivatives amounting to N278bn. These non-recurrent items affected profitability but are not expected to have the same impact in future periods. Despite these challenges, the bank maintained strong underlying performance, with operating profit exceeding N1tn before accounting for these exceptional items.
Strong Capital Position and Recovery Efforts
UBA’s capital position remained robust, with shareholders’ funds increasing to N4.25tn in 2025, up from N3.42tn in 2024. This growth was driven by a successful rights issue that brought in N505bn in share capital and premium. The bank’s capital adequacy ratio of 23.2 per cent provides a solid foundation for future expansion.
In addition, UBA has strengthened its recovery efforts by reinforcing its recovery team to aggressively pursue delinquent exposures. These efforts are expected to positively impact earnings starting from the full year 2026 and beyond.
Pan-African Operations as a Major Growth Driver
Operating in 20 African countries as well as the US, UK, France, and UAE, UBA’s Pan-African operations continue to be a major driver of growth. These operations contributed over 50 per cent of the Group’s total assets, revenue, and profit.
Notably, West Africa operations recorded a 53 per cent profit growth, while East and Southern Africa delivered a 61 per cent increase. This highlights the strength and scalability of UBA’s diversified business model across the continent.
Leadership Insights and Future Outlook
Commenting on the results, UBA’s Group Managing Director/Chief Executive Officer, Oliver Alawuba, emphasized the bank’s proactive approach to the Central Bank of Nigeria’s new recapitalisation requirements. He noted that the Group successfully concluded a capital raising programme, which was oversubscribed, reflecting strong investor confidence in UBA’s long-term growth strategy. A total of N395bn additional capital was raised, enhancing the bank’s capacity to support its operations and expand lending to key sectors.
Alawuba also highlighted significant investments in innovation, technology, and resources to drive payment and digital offerings. These initiatives aim to scale digital-led income streams across UBA’s markets.
Looking ahead, Alawuba expressed confidence in UBA’s ability to accelerate growth in 2026. With plans to strategically expand its risk asset base across key sectors as macroeconomic conditions improve, the Group remains committed to driving sustainable earnings, deepening financial inclusion, and delivering superior value to shareholders.
Strengthening Balance Sheet and Sustainable Earnings
On his part, UBA’s Executive Director, Finance & Risk Management, Ugo Nwaghodoh, highlighted the deliberate strengthening of the balance sheet and a shift toward more sustainable, higher-quality earnings in a normalizing macroeconomic environment. He explained that proactively recognizing potential credit losses positions UBA well to navigate uncertainties and support sustainable performance in future periods.
Nwaghodoh also mentioned that the reversal of prior-year derivative gains and foreign exchange-related losses of N282.5bn drove a decline in non-interest income. However, these items are not expected to recur at similar magnitudes, potentially resulting in future earnings upside.
Despite the impact of these changes on profitability, Nwaghodoh confirmed that UBA’s core business fundamentals, as well as its capital and liquidity positions, remain strong. Shareholders’ funds now stand at N4.25tn, and the capital adequacy ratio is at 23.2 per cent, with the bank having exited the CBN forbearance regime in 2025.
Expanding Reach and Commitment to Innovation
United Bank for Africa is one of the largest employers in the financial sector on the African continent, with 25,000 employees group-wide and serving over 45 million customers globally. Operating in 20 African countries, the United Kingdom, the United States of America, France, and the United Arab Emirates, UBA provides retail, commercial, and institutional banking services. The bank continues to lead financial inclusion and implement cutting-edge technology to enhance customer experience.
