N33trn Strong: UBA Gears Up For N1trn Expansion After Capital Boost

United Bank for Africa is setting the stage for a new growth phase, targeting over N1 trillion in balance sheet expansion after shoring up its capital base and cleaning up legacy risks, even as its total assets climbed to N33.2 trillion in 2025.

The pan-African lender’s audited results for the year ended December 31, 2025 show total assets rising 9.4 percent from N30.3 trillion in 2024, while customer deposits grew 11.8 percent to N27.2 trillion, reinforcing its strong funding base and market position across key African economies.

Gross earnings came in at N3.09 trillion, slightly below the N3.19 trillion recorded a year earlier, as the bank took a deliberate hit from aggressive risk provisioning and valuation adjustments.

Loan loss provisions stood at N331 billion, while fair value losses on derivatives and related exposures weighed on non-interest income, reflecting what management described as largely non-recurring adjustments tied to a broader balance sheet reset.

Despite this, the Group delivered over N1 trillion in operating profit before these exceptional items, underlining the resilience of its core banking operations and income-generating capacity across markets.

Group Managing Director and Chief Executive Officer, Oliver Alawuba, said the bank’s 2025 performance reflects a strategic pivot toward long-term sustainability, anchored on stronger capital buffers and improved earnings quality.

“The 2025 financial year was defined by UBA’s proactive approach to the Central Bank of Nigeria’s recapitalisation requirements. The Group successfully concluded its 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 highlighted.

The capital raise lifted shareholders’ funds to N4.25 trillion from N3.42 trillion in 2024, while share capital and premium rose to about N505 billion.

The Group’s capital adequacy ratio stood at 23.2 percent, giving it significant headroom above regulatory thresholds and positioning it to scale lending as economic conditions improve.

“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,” the chief executive officer added.

The bank’s growth thesis is increasingly tied to its geographic diversification, with operations outside Nigeria now contributing over 50 percent of total assets, revenue and profit. West African subsidiaries recorded 53 percent profit growth in 2025, while East and Southern Africa delivered a 61 percent increase, highlighting the scale and momentum of its continental footprint.

Executive Director, Finance and Risk Management, Ugo Nwaghodoh, said the earnings pressure seen in 2025 was the result of deliberate and forward-looking decisions to recognise risks early and reposition the balance sheet.

“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 drove a decline in non-interest income; these will not recur at this magnitude and should result in future earnings upside,” Nwaghodoh explained.

He noted that the bank has strengthened its recovery architecture, with a reinforced team aggressively pursuing delinquent exposures, creating a pathway for write-backs and earnings recovery beginning from 2026.

“The bank is also intensifying recovery efforts on the provisioned loans, creating a clear pathway for earnings upside,” he further disclosed.

Analysts say the bank’s combination of strong capital buffers, diversified earnings base, and early risk recognition places it among lenders best positioned to capture the next credit expansion cycle, particularly as macroeconomic conditions stabilise and reforms begin to take hold across key African markets.

However, they caution that risks around foreign exchange volatility, regulatory shifts, and credit quality across some sectors remain factors to watch.

UBA’s management is also betting on technology and digital channels to unlock new income streams and deepen customer engagement across its markets.

CEO Alawuba said the bank has made “significant investments in innovation, technology and resources to drive our payment and digital offerings,” aimed at scaling digital-led revenues and improving efficiency.

With a strengthened capital base, a cleaner balance sheet, and a clear growth target in sight, UBA is shifting from a year of absorbing shocks to one of deploying capital at scale, as it positions to convert its N33 trillion balance sheet into a platform for accelerated expansion across Africa and beyond.