By Seun Ibiyemi
United Bank for Africa (UBA) Plc has reported an 11.8 per cent increase in customer deposits for the financial year ended December 31, 2025, as deposits rose to N27.2 trillion from N24.3 trillion recorded in 2024.
The bank disclosed this in its audited financial results released through the Nigerian Exchange Ltd. over the weekend, showing strong balance sheet growth despite pressure on profitability caused by loan loss provisions and derivative-related losses.
According to the report, UBA’s total assets also grew by 9.4 per cent to N33.2 trillion in 2025, compared to N30.3 trillion posted in the corresponding period of 2024.
The group’s gross earnings stood at N3.09 trillion, slightly lower than the N3.19 trillion recorded in the previous year.
Commenting on the results, UBA Group Managing Director, Mr. Oliver Alawuba, said the bank continued to demonstrate the strength of its Pan-African diversified business model, despite moderation in bottom-line performance.
He explained that the group’s core business engines, particularly subsidiaries outside Nigeria, delivered strong double-digit growth during the year.
“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 in UBA’s long-term growth strategy.
“A total of N395 billion additional capital was raised, enhancing our capacity to support our footprints and expand lending to key sectors,” he said.
Alawuba added that the bank had also made significant investments in innovation, technology and human resources to strengthen its payment and digital banking offerings across its markets.
He noted that the 2025 results were significantly impacted by loan loss provisions of N331 billion and fair value changes on derivatives amounting to N227 billion.
According to him, these were largely non-recurrent and not expected to occur at the same magnitude in future periods.
He disclosed that the bank had strengthened its recovery team to aggressively pursue recovery of affected credit facilities, adding that all recoveries would directly impact profit and loss from 2026 onward.
Alawuba said the bank was strategically positioned to expand its risk asset base across key sectors as macroeconomic conditions improve, projecting potential earnings growth of over N1 trillion in the current year.
He further revealed that UBA’s African operations continued to perform strongly, contributing more than 50 per cent of the group’s assets, revenue and profit.
Specifically, West Africa recorded a 53 per cent profit growth in 2025, while Eastern and Southern Africa posted a 61 per cent increase in profit during the same period.
Looking ahead to 2026, Alawuba said the group remained committed to driving sustainable earnings, deepening financial inclusion and delivering superior shareholder value across all its markets.
Also speaking, UBA’s Executive Director for Finance and Risk Management, Mr. Ugo Nwaghodoh, said the 2025 financial year reflected a deliberate effort to strengthen the bank’s balance sheet and shift toward more sustainable, higher-quality earnings.
He said the bank’s proactive recognition of potential credit losses positioned it to better manage uncertainties and ensure long-term performance.
Nwaghodoh explained that the reversal of prior-year derivative gains and foreign exchange-related losses of N282.5 billion contributed significantly to the decline in non-interest income.
He noted that these were exceptional items that would not recur at the same scale, creating room for stronger earnings upside in future periods.
Despite the profitability pressures, he said the bank’s core fundamentals, capital base and liquidity position remained strong.
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He disclosed that shareholders’ funds had risen to N4.25 trillion, while the capital adequacy ratio stood at 23.2 per cent, following the bank’s exit from the Central Bank of Nigeria’s 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.
