Elegbede Abiodun
United Bank for Africa (UBA) Plc has made public its audited financial results for last year, recording total assets growth of 9.4 per cent to N33.2 trillion, up from N30.3 trillion at the end of 2024.
The bank, which has promised to continue to consolidate its strong fundamentals, grew customer deposits from N24.3 trillion in 2024 to N27.2 trillion, despite a shrinking savings culture.
The results released to the Nigerian Exchange Limited on Friday showed that the group also delivered strong gross earnings of N3.09 trillion.
The slight fall in earnings last year was addressed in quarter one (Q1) as gross earnings went up by N801.5 billion or five per cent quarter-on-quarter.
According to the Q1 financial results, released alongside the full-year report, the bank’s interest income also rose 6.9 per cent to N641.1 billion, while non-interest income grew 17.3 per cent to N137.1 billion.
The net interest income stood at N383.7 billion, a 10.5 per cent increase, supporting a 12.2 per cent rise in operating income, which was N520.8 billion.
Return on average equity rose to 13.7 per cent while return on assets also improved to 1.77 per cent, signalling stronger earnings efficiency. Both the cost of risk and funds moderated to two per cent and 3.7 per cent, respectively. The cost of funds was 3.83 per cent in 2025.
In the quarter, profit before tax was 160.7 billion, while profit after tax stood at N146.6 billion, 21.4 per cent and 22.8 per cent decline respectively, consistent with the group’s earnings normalisation.
The Q1 result built on the strong 2025 performance and demonstrated sustained momentum across core banking operations.
The 2025 performance was strengthened by resilient core business fundamentals and diversified pan-African footprints reflecting a strategic repositioning of its balance sheet for sustainable long-term growth.
Remarkably different from previous industry trends when offshore operations were mere cost centres, East and Central African operations of the bank grew its profits by 61 per cent, while West Africa’s profit growth was 53 per cent.
Overall, the bank’s 2025 performance was impacted by prudent and forward-looking risk management decisions, including loan loss provisions of N331 billion and fair value changes on derivatives amounting to N278 billion.
These changes, which are largely non-recurrent in nature, weighed on profitability but are not expected to recur at similar magnitudes in future periods.
Despite this, the group maintained strong underlying performance, with operating profit exceeding N1 trillion before exceptional items, highlighting the resilience of its core banking operations.
A critical look at the performance showed that UBA’s capital position remained robust, with shareholders’ funds rising to N4.25 trillion in 2025; up from N3.42 trillion the previous year, with share capital and premium hitting N505 billion following a very successful rights issue.
The group’s capital adequacy ratio of 23.2 per cent provides a solid foundation to support future growth, just as the bank has also strengthened its recovery efforts, with a fortified recovery team aggressively pursuing delinquent exposures, ensuring that recoveries will positively impact earnings from full year 2026 and beyond.
Commenting on the results, UBA’s Group Managing Director/Chief Executive Officer, Oliver Alawuba, said the bank continues to demonstrate the true strength of its Pan-African diversified model, despite the moderation in bottom-line performance compared to the prior year’s highs, as core business engines, especially in the 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 recapitalisation requirements. 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 N395 billion additional capital was raised, enhancing our capacity to support our footprints, and expanding lending to key sectors.”
The GMD said: “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.
“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.”
UBA’s Executive Director, Finance and Risk Management, Ugo Nwaghodoh, said the 2025 financial year marked a deliberate strengthening of the balance sheet and a shift toward more sustainable, higher-quality earnings in a normalising macroeconomic environment.
“We believe that proactively recognising 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.
