UBA Reports Significant Growth in Audited Financial Results for 2025
United Bank for Africa (UBA) Plc has revealed its audited financial results for the year ending December 31, 2025, highlighting a substantial 9.4% increase in total assets, which rose to N33.2 trillion from N30.3 trillion at the close of 2024.
Strong Rise in Customer Deposits Reflects Consumer Confidence
The bank reported an impressive 11.8% growth in customer deposits, with the figure climbing from N24.3 trillion to N27.2 trillion in 2024. This surge underscores the strong consumer confidence in UBA’s offerings and reflects the bank’s commitment to enhancing customer experience.
Profitability Challenges amid Strategic Positioning
Financial results disclosed to the Nigerian Exchange on Friday revealed that UBA recorded a total profit of N3.09 trillion, although this is slightly down from N3.19 trillion in the previous year. This decline in gross profit is attributed to strategic initiatives aimed at repositioning the balance sheet towards sustainable long-term growth, bolstered by a robust core business and diversification across the Pan-African landscape.
Prudent Risk Management Ensures Stability
Despite the challenges, UBA’s performance was underpinned by prudent risk management strategies. The bank set aside N331 billion for loan loss provisions and accounted for N278 billion in changes related to derivative fair value. Although these are non-recurring adjustments that may compress profitability, they are not expected to recur at similar levels in the future.
Core Operations Show Resilience Amid Non-Recurring Items
Excluding these special items, UBA reported an operating profit exceeding N1 trillion, which highlights the resilience of its core banking operations. A thorough analysis indicates that the bank’s capital base remains robust, with shareholder funds rising to N4.25 trillion in 2025, up from N3.42 trillion the prior year due to a successful rights issue.
Pan-African Expansion Drives Growth and Profitability
The bank’s pan-African operations, which span 20 countries as well as the US, UK, France, and UAE, are proving to be significant growth engines, contributing over 50% to UBA’s total assets, revenues, and profits. Notably, the West Africa segment experienced a 53% profit growth, while East and Southern Africa recorded a remarkable 61% increase, showcasing UBA’s diversified and scalable business model across the continent.
Positive Outlook and Strategic Investments Foreseen
Group Managing Director and Chief Executive Officer, Oliver Arauba, emphasized that despite a moderation in net profit relative to last year’s peaks, UBA remains committed to its pan-African diversification strategy. He highlighted the successful completion of an oversubscribed capital raising program, which gathered N395 billion and reflects investor confidence in UBA’s long-term growth initiatives. Arauba mentioned ongoing investments in innovation and technology to enhance digital services, aiming to expand revenue streams driven by digital channels.
Focus on Sustainable Earnings Amid Economic Challenges
In looking ahead, UBA plans to strategically broaden its risk asset base across key sectors, anticipating further growth exceeding N1 trillion in the near future. Ugo Nwagodou, Executive Director of Finance and Risk Management, reiterated the bank’s dedication to strengthening its balance sheet while positioning itself for higher quality and sustainable earnings amidst a normalizing macroeconomic landscape. Proactive measures regarding potential credit losses are underway to navigate uncertainties and support future performance.
