UBA assets rise 9.4% to N33.2trn, strengthens balance sheet for sustainable growth

United Bank for Africa Plc has posted a 9.4 percent growth in total assets to N33.2 trillion for the 2025 financial year from N30.3 trillion in 2024, signalling a strengthened balance sheet and positioning for future expansion.

The Group’s audited results show customer deposits climbed by 11.8 percent to N27.2 trillion from N24.3 trillion, reinforcing its liquidity base and reflecting sustained customer confidence across its markets.

Gross earnings remained solid at about N3 trillion, underpinned by resilient core operations and contributions from its diversified African franchise. The bank, however, noted that its 2025 performance was influenced by significant but largely non-recurring charges, including loan loss provisions of N331 billion and fair value losses on derivatives exceeding N200 billion.

According to the bank, these adjustments stem from a cautious and forward-looking risk management approach and are not expected to recur at similar levels, thereby preserving the outlook for earnings in subsequent periods.

Despite these headwinds, underlying operations remained strong, with operating profit exceeding N1 trillion before the exceptional items, indicating sustained earnings capacity.

The pan-African lender also recorded a notable improvement in its capital position, with shareholders’ funds rising to N4.25 trillion from N3.42 trillion in previous year. Share capital and premium stood at about N504 billion following a successful rights issue, while capital adequacy ratio remained robust at 23.2 percent, providing capacity to support asset growth.

Commenting on the performance, Oliver Alawuba, group managing director/chief executive officer, said the results reflect the strength of the bank’s pan-African model and its ability to navigate a challenging operating environment.

According to him, the bank’s recapitalisation initiative, undertaken in line with regulatory expectations set by the Central Bank of Nigeria, attracted strong investor participation and enhanced its capacity to fund growth across strategic sectors.

“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 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,” he said.

The GMD further 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.”

Alawuba noted that the bank was set to expand its risk asset portfolio as macroeconomic conditions improve, with expectations of over N1 trillion in additional growth in the near term.

The Group has also intensified recovery efforts on impaired facilities, with a strengthened recovery team pursuing delinquent loans. Recoveries are expected to flow directly into earnings from 2026 and beyond.

Ugo Nwaghodoh, executive director, Finance and Risk Management, said the bank’s 2025 performance reflects a deliberate shift towards more sustainable earnings, supported by stronger capital buffers and improved asset quality.

“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 N4.25trillion and capital adequacy ratio at 23.2 percent, 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.

UBA’s international operations continued to drive growth, accounting for over half of the Group’s assets, revenue and profit. Regionally, West Africa delivered a 53 percent increase in profit, while East and Southern Africa recorded a 61 percent growth, underscoring the scale and resilience of its cross-border business.

With a strengthened capital base, growing deposits and a diversified earnings profile, the bank said it remains well positioned to deliver improved performance and sustainable growth in the 2026 financial year and beyond.