- Balance sheet repositioned for sustainable growth
- Q1’26 numbers support N1trn loan growth target
Business a.m. Reporter
United Bank for Africa (UBA) Plc has filed its full year audited report for the financial year 2025 which shows its assets climbed 9.4 percent in value to N33.2 trillion from N30.3 trillion the previous year.
The Nigerian lender, which sees itself as Africa’s Global Bank as its operations serve over 45 million customers globally, in twenty African countries, the United Kingdom, the United States of America, France and the United Arab Emirates, also reported robust gross earnings of N3.09 trillion, just marginally down from N3.19 trillion recorded in 2024.
The financial powerhouse said the strong gross earnings position was strengthened by resilient core business fundamentals and a diversified Pan-African footprint, even as the year reflected a strategic repositioning of its balance sheet for sustainable long-term growth.
Key highlights of the results include the impact material loan loss provisioning of N331 billion and fair value changes on derivatives of N227 billion which were fully accommodated in the 2025 full financial year.
The lender explained that these are non-recurrent provisioning, at least not in the magnitude done for the year under review. Besides, the lender does not expect these to diminish the earnings for future periods
It assured that the recovery team has been fortified and aggressively pursuing recovery of the affected facilities, noting that all recoveries would flow straight through to profit and loss statement in FY2026 and beyond.
The financial result also show that the bank’s share capital and premium amount to N504 billion resulting from its rights issues, and fully covering its international banking licence status. It added that shareholders’ funds stood at N4.25 trillion for the full year 2025 and that it posted a strong capital adequacy of 23.2 percent, which positions that bank for significant growth.
The lender reported that its growth continues to be strategic as deposits grew by 11.8 percent to N27.2 trillion.
Accordingly, the lender said it is poised to strategically grow its risk asset base in choice sectors, as the macroeconomic fundamentals strengthen, noting that this should enhance earnings and profit in FY2026 and beyond.
The bank said it can already see over N1trillion in growth this year.
It’s franchise in Africa witnessing significant growth stories and contributing materially to the Group, as it now contributes over 50 percent of Group assets, revenue and profit.
Broken down, West Africa – contributed 53 percent profit growth in 2025; while ESA – contributed 61 percent profit growth in 2025.
Oliver Alawuba, group managing director and chief executive officer, 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.”
Alawuba 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.”
In his forecast for the 2026 financial year, Alawuba stated, “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.”
Ugo Nwaghodoh, UBA’s executive director, finance and risk management, 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 N4.25trillion 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.
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