Juliet Ezeh
Africa’s global financial institution, United Bank for Africa Plc (UBA), has reported a steady expansion in its balance sheet for the financial year ended December 31, 2025, even as profit performance came under pressure from risk-related provisions and fair value adjustments.
According to its audited results released to the Nigerian Exchange Limited, UBA grew its total assets by 9.4 per cent, rising from N30.3 trillion in 2024 to N33.2 trillion in 2025. Customer deposits also strengthened significantly, climbing 11.8 per cent from N24.3 trillion to N27.2 trillion within the same period.
The bank, however, recorded a slight dip in gross earnings, which fell from N3.19 trillion in 2024 to N3.09 trillion in 2025. Despite the decline, management attributed the outcome to strategic balance sheet adjustments and risk management decisions aimed at ensuring long-term stability rather than short-term gains.
A major factor influencing profitability was the recognition of N331 billion in loan loss provisions and N278 billion in fair value changes on derivatives. These adjustments, the bank explained, are largely non-recurring and are expected to stabilise in future reporting periods.
Despite these charges, UBA maintained strong operational strength, with operating profit exceeding N1 trillion before exceptional items. This, according to the bank, reflects the resilience of its core banking operations across its African and international footprint.
Shareholders also saw continued strength in equity positions, as shareholders’ funds rose to N4.25 trillion in 2025, compared to N3.42 trillion in the previous year. The increase was partly supported by a successful rights issue that raised N505 billion in share capital and premium.
The bank’s capital adequacy ratio stood at a strong 23.2 per cent, providing what analysts describe as a comfortable buffer for expansion, lending activities, and risk absorption in a volatile macroeconomic environment.
UBA Group Managing Director and Chief Executive Officer, Oliver Alawuba, said the 2025 performance reflects the strength of the bank’s diversified Pan-African model, despite temporary pressure on earnings.
He noted that subsidiaries outside Nigeria were key growth drivers, recording double-digit expansion across several markets. West Africa operations grew profit by 53 per cent, while East and Southern Africa delivered a 61 per cent increase, underscoring the group’s regional strength.
“The year was defined by our proactive approach to recapitalisation and balance sheet strengthening,” Alawuba said. “We successfully completed a capital raising programme that was oversubscribed, reflecting strong investor confidence in UBA’s long-term strategy.”
He added that the bank raised N395 billion in additional capital during the year, strengthening its capacity to support lending across key sectors and expand its Pan-African operations.
Alawuba also highlighted increased investments in digital banking and technology infrastructure, noting that innovation remains central to the bank’s growth strategy.
“We have made significant investments in technology and payment systems to scale digital-led income streams across all our markets,” he said.
Looking ahead to 2026, the UBA chief executive expressed optimism about accelerated growth, supported by expected macroeconomic improvements and expansion of risk assets.
“We expect to grow our balance sheet further, with over N1 trillion in additional expansion anticipated in the near term,” he said. “Our focus remains on sustainable earnings, financial inclusion, and delivering long-term value to shareholders.”
On his part, the Group’s Executive Director for Finance and Risk Management, Ugo Nwaghodoh, said the 2025 results reflect a deliberate shift toward stronger risk management and sustainable earnings quality.
He explained that proactive recognition of potential credit losses was a strategic decision to position the bank for stability and future upside.
“We believe that addressing credit risks early strengthens our resilience and supports sustainable performance going forward,” he said.
Nwaghodoh also noted that foreign exchange-related losses and derivative reversals impacted non-interest income during the year but are not expected to recur at similar levels.
According to him, UBA’s liquidity and capital position remain strong, especially following its exit from the Central Bank of Nigeria’s forbearance regime in 2025.
“With a capital adequacy ratio of 23.2 per cent and shareholders’ funds at N4.25 trillion, the bank is well positioned to support prudent risk asset growth as macroeconomic conditions improve,” he added.
He further stated that intensified recovery efforts on non-performing loans are expected to contribute positively to earnings from 2026.
UBA continues to rank among Africa’s largest financial institutions, with operations in 20 African countries as well as the United Kingdom, United States, France, and the United Arab Emirates. The group serves over 45 million customers and employs approximately 25,000 staff globally.
The 2025 results, while reflecting short-term earnings pressure, signal a strategic repositioning aimed at strengthening the bank’s long-term growth trajectory across Africa and international markets.