UBA deposits surge to N27.2trn despite profit pressures

United Bank for Africa Plc has recorded an 11.8 per cent increase in customer deposits, rising to N27.2 trillion for the financial year ended December 31, 2025, from N24.3 trillion in 2024.

The bank disclosed this in its audited financial results released on the Nigerian Exchange Ltd. on Saturday, indicating sustained balance sheet expansion despite macroeconomic headwinds.

Total assets also grew by 9.4 per cent to N33.2 trillion, up from N30.3 trillion in the previous year, while gross earnings stood at N3.09 trillion, slightly lower than the N3.19 trillion recorded in 2024.

Commenting on the performance, Group Managing Director, Oliver Alawuba, said the results reflected the resilience of the bank’s pan-African model, even as profitability moderated from prior highs.

“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 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 expanding lending to key sectors.

“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,” he said.

Alawuba noted that the bank delivered strong earnings supported by solid fundamentals, but explained that performance was impacted by non-recurring factors, including loan loss provisions of N331 billion and fair value losses on derivatives of N227 billion.

He said these charges were not expected to recur at the same scale, adding that recovery efforts were underway.

According to him, “the bank’s recovery team has been strengthened and was actively pursuing the recovery of affected credit facilities, adding that all recoveries will flow directly into profit and loss from 2026 onwards.”

He further projected a strong outlook for the current financial year, with potential earnings growth exceeding N1 trillion, driven by improving macroeconomic conditions and expansion across key sectors.

The UBA boss also highlighted the growing contribution of the bank’s African operations, noting that the franchise accounted for more than 50 per cent of total assets, revenue and profit.

He added that West Africa recorded a 53 per cent growth in profit, while Eastern and Southern Africa posted a 61 per cent increase within the same period.

Looking ahead, Alawuba said: “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.”

Also speaking, Executive Director, Finance and Risk Management, Ugo Nwaghodoh, said the bank deliberately strengthened its balance sheet in 2025 to ensure long-term sustainability.

“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 said.

Nwaghodoh added that despite the pressure on profitability, the bank’s fundamentals remained strong, with shareholders’ funds rising to N4.25 trillion and capital adequacy ratio at 23.2 per cent, following its exit from the Central Bank of Nigeria’s forbearance regime.

He expressed confidence that ongoing recovery efforts and improved macroeconomic conditions would position the bank for stronger earnings growth in the coming years.