AFRICA’s Global Bank, United Bank for Africa (UBA) Plc has reported a strong underlying performance for the financial year ended December 31, 2025, even as its results reflected the impact of significant one-off charges linked to prudent risk management decisions.
The bank recorded gross earnings of about N3 trillion, underpinned by solid business fundamentals, despite a marginal decline compared to the previous year. The financial performance was, however, affected by material loan loss provisions of N331 billion and fair value changes on derivatives amounting to over N227 billion.
These impacts, according to the bank, are largely non-recurrent at least not at the same magnitude and are not expected to significantly diminish earnings in future periods. Management emphasised that the exceptional charges represent a forward-looking and conservative approach to risk management rather than a deterioration in core operations.
To address affected exposures, the bank disclosed that its recovery team has been strengthened and is aggressively pursuing recoveries. It noted that all recoveries would flow directly into profit and loss accounts from the 2026 financial year and beyond, providing a clear pathway for earnings improvement.
UBA’s audited results, released on Friday to the Nigerian Exchange Limited, showed that total assets grew by 9.4 per cent to N33.2 trillion, up from N30.3 trillion in 2024. Customer deposits also rose by 11.8 per cent to N27.2 trillion, compared to N24.3 trillion recorded in the previous year, reflecting sustained growth in its operations.
Despite the slight dip in gross earnings from N3.19 trillion in 2024 to N3.09 trillion in 2025 the bank maintained resilient performance driven by its diversified Pan-African footprint and strong core banking activities. The year also marked a deliberate strategic repositioning of its balance sheet for sustainable long-term growth.
Further analysis of the results showed that UBA’s capital base remained robust, with share capital and premium rising to about N504 billion following successful rights issues. Shareholders’ funds also increased significantly to N4.25 trillion, while the capital adequacy ratio stood at a strong 23.2 per cent, positioning the bank for expansion.
The bank noted that it continues to grow strategically, with its balance sheet reflecting steady expansion. Total assets rose by 9.4 per cent, while deposits grew by 11.8 per cent, reinforcing its capacity to support lending and business growth.
Looking ahead, UBA said it is poised to expand its risk asset base across key sectors as macroeconomic fundamentals strengthen. This strategy is expected to enhance earnings and profitability from the 2026 financial year and beyond, with projections indicating potential growth exceeding N1 trillion in the near term.
The bank’s Pan-African franchise remains a major driver of performance, contributing over 50 per cent of group assets, revenue, and profit. Regional operations recorded strong gains, with West Africa delivering 53 per cent profit growth, while East and Southern Africa achieved a 61 per cent increase in 2025.
Operating in 20 African countries as well as in the United States, United Kingdom, France, and the United Arab Emirates, UBA continues to leverage its international presence to scale growth and diversify revenue streams.
Commenting on the results, the Group Managing Director/Chief Executive Officer, Oliver Alawuba, said the bank’s performance demonstrates the strength of its Pan-African diversified model, despite the moderation in bottom-line figures compared to previous highs.
“The 2025 financial year was defined by UBA’s proactive approach to the Central Bank of Nigeria’s new recapitalisation requirements. The Group successfully concluded a capital raising programme, which was oversubscribed, reflecting strong investor confidence,” he said.
According to him, the bank raised an additional N395 billion, boosting its ability to support operations and expand lending to key sectors. He added that UBA has also made significant investments in innovation, technology, and digital payment platforms to scale income streams across its markets.
Providing an outlook for 2026, Alawuba said the bank is well-positioned to accelerate growth through strategic expansion of its risk asset base.
“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,” he stated.
On his part, the Executive Director, Finance and Risk Management, Ugo Nwaghodoh, said the 2025 performance reflects a deliberate shift toward stronger, higher-quality earnings in a normalising economic environment.
“We believe that proactively recognising potential credit losses positions us well to navigate uncertainties and support sustainable performance in future periods,” he explained.
He noted that the reversal of prior-year derivative gains and foreign exchange-related losses amounting to over N282.5 billion contributed to a decline in non-interest income, but stressed that such impacts are not expected to recur at the same magnitude, thereby creating upside potential for future earnings.
According to him, the bank has exited the Central Bank of Nigeria’s forbearance regime and remains well-capitalised, with strong liquidity and a solid capital adequacy ratio of 23.2 per cent.
“With deliberate steps 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 provisioned loans, creating a clear pathway for earnings upside,” Nwaghodoh added.
UBA, one of Africa’s largest financial institutions, employs over 25,000 people and serves more than 45 million customers globally, continuing to drive financial inclusion and deliver innovative banking solutions across its markets.