United Bank for Africa Plc (UBA) reported a 9.4 percent increase in total assets to about US$22.1 billion for the year ended December 31, 2025, even as higher risk provisions and derivative losses weighed on earnings.
In audited results released on Friday to the Nigerian Exchange Limited, the lender said customer deposits rose 11.8 percent to roughly US$18.1 billion, up from about US$16.2 billion a year earlier, reflecting continued balance sheet growth.
Gross earnings, however, dipped to approximately US$2.06 billion from about US$2.13 billion in 2024, which the bank attributed to a strategic repositioning of its balance sheet and cautious risk management.
The bank said its performance was significantly impacted by largely non-recurring items, including loan loss provisions of about UU$221 million and fair value losses on derivatives amounting to roughly US$185 million.
“These actions, while affecting short-term profitability, are forward-looking and position the Group for more sustainable performance in subsequent periods,” UBA said.
Despite the decline in headline earnings, the bank maintained strong core performance, with operating profit exceeding US$667 million before the exceptional items.
Analysts say such provisions reflect a broader trend among African lenders adopting more conservative positions amid currency volatility, inflation pressures and global economic uncertainty.
UBA’s capital base strengthened during the year, with shareholders’ funds rising to approximately US$2.83 billion, up from about US$2.28 billion in 2024.
More Read
The increase was supported by a successful rights issue, which lifted share capital and premium to roughly US$337 million.
The bank’s capital adequacy ratio stood at 23.2 percent, well above regulatory thresholds, providing what it described as a strong buffer to support future growth.
UBA also said it had intensified efforts to recover delinquent loans, with a reinforced recovery team expected to improve collections and positively impact earnings from 2026 onward.
Operating in 20 African countries as well as in the United States, United Kingdom, France and the United Arab Emirates, the group said its international operations remained a key growth driver.
Its pan-African business contributed more than 50 percent of total assets, revenue and profit, underlining the growing importance of subsidiaries outside Nigeria.
Regional performance was particularly robust, with West Africa delivering a 53 percent rise in profit, while East and Southern Africa recorded a 61 percent increase.
More Read
Group Managing Director and Chief Executive Officer Oliver Alawuba said the results demonstrate the resilience of the bank’s diversified model.
“The Group continues to demonstrate the true strength of its pan-African strategy, with our core business engines, particularly in subsidiaries outside Nigeria, delivering double-digit growth,” he said.
Nigeria’s banking sector has faced persistent macroeconomic challenges, including currency depreciation and inflation, prompting lenders to adopt more prudent risk strategies.
UBA said its latest results reflect a deliberate effort to navigate these headwinds while strengthening its balance sheet and positioning for long-term growth.
While short-term profitability may remain under pressure, the bank expressed confidence that improved asset quality, stronger capital buffers and its expanding international footprint would support sustained performance in the coming year
