UBA GROWS ASSETS TO N33.2 TRILLION, RAISES N395 BILLION IN OVERSUBSCRIBED RIGHTS ISSUE

UBA GROWS ASSETS TO N33.2 TRILLION, RAISES N395 BILLION IN OVERSUBSCRIBED RIGHTS ISSUE

By prince Benson Davies

Africa’s Global Bank, United Bank for Africa (UBA) Plc has announced its audited financial results for the year ended December 31, 2025, recording total assets growth of 9.4 percent to N33.2 trillion up from N30.3 trillion at the end of 2024. Customer deposits also rose by 11.8 percent from N24.3 trillion in 2024 to N27.2 trillion.

The results released to the Nigerian Exchange Limited on Friday showed that the Group delivered gross earnings of N3.09 trillion compared with N3.19 trillion recorded the previous year. Although there was a slight drop in gross earnings, the bank said the performance was strengthened by resilient core business fundamentals and a diversified Pan African footprint. The year also reflected a strategic repositioning of its balance sheet for sustainable long term growth.

The bank’s 2025 performance was impacted by prudent and forward looking risk management decisions. These included loan loss provisions of N331 billion and fair value changes on derivatives amounting to N278 billion. UBA explained that these changes 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. Operating profit exceeded N1 trillion before these exceptional items, highlighting the resilience of its core banking operations.

A review of the performance showed that UBA’s capital position remained robust. Shareholders’ funds rose to N4.25 trillion in 2025, up from N3.42 trillion the previous year. Share capital and premium reached N505 billion following a very successful rights issue. The Group’s capital adequacy ratio of 23.2 percent provides a solid foundation to support future growth. The Bank has also strengthened its recovery efforts, with a fortified recovery team aggressively pursuing delinquent exposures. UBA said recoveries will positively impact earnings from full year 2026 and beyond.

Operating in 20 African countries and in the US, UK, France and UAE, the Group’s Pan African operations continue to be a major growth driver. They contributed over 50 percent of total assets, revenue, and profit. West Africa operations recorded a 53 percent profit growth, while East and Southern Africa delivered a 61 percent increase. This reinforces the strength and scalability of UBA’s diversified business model across the continent.

Commenting on the results, UBA’s Group Managing Director and Chief Executive Officer, Oliver Alawuba, said the bank continues to demonstrate the true strength of its Pan African diversified model. He noted that despite the moderation in bottom line performance compared to the prior year’s highs, 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 new recapitalization 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,” Alawuba said.

He added that the bank has also made significant investments in innovation, technology and resources to drive its payment and digital offerings. This will help scale digital led income streams across its markets.

In his forecast for the 2026 financial year, Alawuba stated that 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,” he said.

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 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.

He noted that despite the impact of these changes on profitability, the bank’s core business fundamentals as well as its capital and liquidity positions remain strong. Shareholders’ funds now stand at N4.25 trillion and capital adequacy ratio is 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 said.

United Bank for Africa is one of the largest employers in the financial sector on the African continent, with 25,000 employees group wide and serving over 45 million customers globally. Operating in twenty African countries, the United Kingdom, the United States of America, France and the United Arab Emirates, UBA provides retail, commercial and institutional banking services, leading financial inclusion and implementing cutting edge technology.