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Oliver Alawuba, MD of United Bank for Africa

Africa’s Global Bank, United Bank for Africa (UBA) Plc has unveiled its audited financial results for the year ending December 31, 2025. The bank reported a 9.4 per cent increase in total assets, reaching N33.2 trillion from N30.3 trillion at the end of 2024. Additionally, customer deposits rose by 11.8 per cent, from N24.3 trillion in 2024 to N27.2 trillion. These results, disclosed to the Nigerian Exchange Limited on Friday, indicated that the Group achieved gross earnings of N3.09 trillion, slightly lower than the N3.19 trillion recorded the previous year. Despite this minor decline, the performance was supported by strong core business fundamentals and a broad Pan-African presence, as the year marked a strategic repositioning of the balance sheet for long-term sustainable growth. Overall, the bank’s 2025 performance was influenced by cautious and forward-thinking risk management decisions, including loan loss provisions of N331 billion and fair value changes on derivatives amounting to N278 billion. These factors, primarily non-recurring, affected profitability but are not expected to occur at similar levels in future periods. Nevertheless, the Group maintained robust underlying performance, with operating profit surpassing N1 trillion before these exceptional items, showcasing the resilience of its core banking operations. A closer examination of the performance revealed that UBA’s capital position remained strong, with shareholders’ funds increasing to N4.25 trillion in 2025, up from N3.42 trillion in the previous year. Share capital and premium reached N505 billion following a highly successful rights issue. The Group’s capital adequacy ratio of 23.2 percent provides a solid base for future expansion, while the Bank has also enhanced its recovery efforts, with an improved recovery team actively pursuing overdue exposures, ensuring that recoveries will positively impact earnings starting from the full year 2026 and beyond. Operating in 20 African countries, as well as in the US, UK, France, and UAE, the Group’s Pan-African operations continue to be a significant growth driver, contributing more than 50 per cent of total assets, revenue, and profit. Notably, West Africa operations saw a 53 per cent increase in profits, while East and Southern Africa experienced a 61 per cent rise, reinforcing the strength and scalability of UBA’s diversified business model across the continent. Commenting on the results, UBA’s Group Managing Director/Chief Executive Officer, Oliver Alawuba, stated that the bank continues to demonstrate the true strength of its Pan-African diversified model, despite a moderation in bottom-line performance compared to the prior year’s highs, as core business engines, particularly in subsidiaries outside Nigeria, delivered double-digit growth. “The 2025 financial year was defined by UBA’s proactive approach to the Central Bank of Nigeria’s (CBN) new recapitalization requirements. The Group successfully completed a capital raising program, which was oversubscribed, reflecting strong investor confidence in UBA’s long-term growth strategy. A total of N395 billion additional capital was raised, enhancing our capacity to support our footprint and expanding lending to key sectors,” said the GMD. Continuing, he mentioned, “We have also made significant investments in innovation, technology, and resources to drive our payment and digital offerings; this will help scale digital-led income streams across our markets.” In his forecast for the 2026 financial year, Alawuba stated, “Looking ahead, UBA is well-positioned to accelerate growth, with plans to strategically expand its risk asset base across key sectors as macroeconomic conditions improve. With expectations of over N1 trillion in additional growth in the near term, the Group remains committed to driving sustainable earnings, deepening financial inclusion, and delivering superior value to shareholders across all its markets.” On his part, UBA’s Executive Director, Finance & Risk Management, Ugo Nwaghodoh, noted that the 2025 financial year marked a deliberate strengthening of the balance sheet and a shift toward more sustainable, higher-quality earnings in a normalizing macroeconomic environment. “We believe that proactively recognizing potential credit losses positions us well to navigate uncertainties and support sustainable performance in future periods. The reversal of prior-year derivative gains and foreign exchange-related losses of N282.5 billion drove a decline in non-interest income; these will not recur in this magnitude and should result in future earnings upside,” he explained. According to him, despite the impact of these changes on profitability, the bank’s core business fundamentals as well as its capital and liquidity positions remain strong, with shareholders’ funds now at N4.25 trillion and capital adequacy ratio at 23.2 per cent, having exited the CBN forbearance regime in 2025. “With deliberate steps we have taken to reposition our Nigerian operations, we are well placed to cautiously drive risk asset growth in line with improving macroeconomic conditions. The bank is also intensifying recovery efforts on the provisioned loans, creating a clear pathway for earnings upside,” Nwaghodoh explained. Provided by SyndiGate Media Inc. (Syndigate.info).