Onome Amuge
United Bank for Africa (UBA) Plc has reinforced its standing as one of the continent’s largest lenders, expanding its balance sheet and shoring up capital buffers even as profit before tax edged lower in the first half of 2025.
The pan-African bank on Thursday reported profit after tax of N335.53 billion for the six months to June, a 6 per cent year-on-year increase. Gross earnings climbed 17 per cent to N1.61 trillion, underpinned by a 32.9 per cent rise in interest income to N1.33tn.
Yet beneath the headline growth, pre-tax profit slipped to N388 billion from N401 billion a year earlier, reflecting margin pressures in an environment of volatile interest rates, higher funding costs and persistent currency instability in some of UBA’s 20 African markets.
Management framed the results as evidence of resilience. “Our first-half results highlight the strength of our business and the trust our customers continue to place in us. We delivered strong double-digit earnings growth across our markets … underscoring the success of our strategy,” said group chief executive Oliver Alawuba.
UBA’s focus now turns to capital strengthening. Phase I of its ongoing rights issue raised N234.3 billion earlier this year, with Phase II underway and targeted for completion before year-end. The exercise is designed to boost buffers ahead of tighter regulatory capital requirements expected from the Central Bank of Nigeria.
Shareholders’ funds rose sharply by 23 per cent in the half, climbing to N4.22 trillion from N3.41 trillion at the end of 2024. Total assets expanded 9.7 per cent to N33.3tn, while customer deposits swelled nearly 12 per cent to N27.6 trillion.
“The strong performance was anchored on broad-based revenue growth. Capital adequacy and liquidity ratios remain well above regulatory thresholds, providing a solid foundation for continued growth,” said Ugo Nwaghodoh, executive director for finance and risk management.
The capital raising effort is viewed by analysts as critical to UBA’s ability to sustain its expansion across Africa and into international financial centres. The lender, which brands itself as “Africa’s Global Bank”, serves more than 45 million customers across 1,000 business offices and operates in London, Paris, New York and Dubai.
The bank’s balance-sheet growth comes against the backdrop of tougher operating conditions across Africa, including inflationary pressures, debt sustainability challenges in several economies and rising competition from nimble fintechs. UBA has sought to offset these headwinds by scaling digital platforms, improving cost efficiency and diversifying revenue sources.
While profit before tax softened, the bank’s stronger capital base and enlarged deposit pool give it room to operate within volatility and maintain lending momentum. Analysts say investors will be watching the second phase of the rights issue closely, with completion seen as a litmus test of UBA’s capacity to fund growth while meeting evolving regulatory expectations.
Alawuba struck an optimistic tone, pledging to build on the solid foundation of the first half. “We are confident of sustaining this trajectory as we execute our strategic priorities; expanding market share, scaling digital income streams, and maintaining disciplined risk management,” he said.
With assets now above N33 trillion and capital levels rising, analysts assert that UBA has signalled that scale and prudence, rather than short-term margin expansion, will define its growth story in the coming years.
