United Bank for Africa (UBA) Plc has released its audited financial results for the 2025 fiscal year, showing a 9.4% increase in total assets to N33.2 trillion, up from N30.3 trillion at the end of 2024. The bank, which has committed to consolidating its strong fundamentals, grew customer deposits from N24.3 trillion in 2024 to N27.2 trillion, despite a declining savings culture.
The results, filed with the Nigerian Exchange Limited on Friday, also indicated that the group delivered robust gross earnings of N3.09 trillion. Although earnings saw a slight decline last year, the first quarter of 2026 reversed the trend, with gross earnings rising by N801.5 billion, or 5% quarter-on-quarter.
First Quarter Performance Highlights
According to the Q1 2026 financial results, released alongside the full-year report, the bank's interest income increased by 6.9% to N641.1 billion, while non-interest income grew by 17.3% to N137.1 billion. Net interest income reached N383.7 billion, a 10.5% rise, supporting a 12.2% increase in operating income to N520.8 billion. Return on average equity improved to 13.7%, and return on assets rose to 1.77%, indicating stronger earnings efficiency. The cost of risk and cost of funds moderated to 2% and 3.7%, respectively, compared to 3.83% for cost of funds in 2025.
In the first quarter, profit before tax stood at N160.7 billion, while profit after tax was N146.6 billion, representing declines of 21.4% and 22.8%, respectively, consistent with the group's earnings normalisation. The Q1 results built on the strong 2025 performance and demonstrated sustained momentum across core banking operations.
Strategic Repositioning and Regional Growth
The 2025 performance was strengthened by resilient core business fundamentals and a diversified pan-African footprint, reflecting a strategic repositioning of the balance sheet for sustainable long-term growth. Notably, unlike previous industry trends where offshore operations were mere cost centres, UBA's East and Central African operations saw profit growth of 61%, while West Africa's profit growth was 53%.
Overall, the 2025 performance was impacted by prudent and forward-looking risk management decisions, including loan loss provisions of N331 billion and fair value changes on derivatives amounting to N278 billion. These largely non-recurrent items weighed on profitability but are not expected to recur at similar magnitudes in future periods. Despite this, the group maintained strong underlying performance, with operating profit exceeding N1 trillion before exceptional items, highlighting the resilience of its core banking operations.
Capital Position and Recovery Efforts
A critical review of the performance shows that UBA's capital position remained robust, with shareholders' funds rising to N4.25 trillion in 2025, up from N3.42 trillion the previous year. Share capital and premium hit N505 billion following a very successful rights issue. The group's capital adequacy ratio of 23.2% provides a solid foundation to support future growth. Additionally, the bank has strengthened its recovery efforts, with a fortified recovery team aggressively pursuing delinquent exposures, ensuring that recoveries will positively impact earnings from full year 2026 and beyond.
Management Commentary
Commenting on the results, UBA's Group Managing Director and Chief Executive Officer, Oliver Alawuba, stated that the bank continues to demonstrate the true strength of its Pan-African diversified model, despite the moderation in bottom-line performance compared to prior year highs. Core business engines, especially in 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 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,” Alawuba said.
He added: “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. 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.”
UBA's Executive Director of 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 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. Shareholders' funds now stand at N4.25 trillion, and the capital adequacy ratio is 23.2%, 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.
