United Bank for Africa Plc has released its audited group financial results for the year ended December 31, 2025, posting gross earnings of N3 trillion.
The top-line growth reinforces its position as one of Africa’s most systemically important banks.
Despite a challenging operating environment, the bank recorded a profit after tax of N404.6 billion, supported largely by strong contributions from its pan-African subsidiaries.
Key highlights
- Interest income: N2.649 trillion (+9.48% YoY)
- Interest expense: N1.031 trillion (+19.97% YoY)
- Net interest income: N1.618 trillion (+4.24% YoY)
- Impairment charge: N331.1 billion (+52.59% YoY)
- Net interest income (post-impairment): N1.289 trillion (-0.76% YoY)
- Net fee and commission income: N332.5 billion (-0.25% YoY)
- Profit after tax: N404.7 billion (-47.21% YoY)
Earnings weighed down by one-off charges
While gross earnings remained robust, the bank’s bottom line came under pressure from significant non-recurring items.
UBA booked loan loss provisions of N331 billion alongside fair value losses on derivatives of N227 billion, both of which materially impacted profitability for the year.
These charges, however, are not expected to persist at similar magnitudes in subsequent periods.
Management indicated that recoveries from affected loan exposures are already underway, with a strengthened recovery team aggressively pursuing resolution.
Any successful recoveries are expected to flow directly into earnings from FY2026 onward.
Capital position strengthens after rights issue
The bank’s balance sheet remains solid, underpinned by a strengthened capital base following its recent rights issue.
- Share capital and share premium stood at N504 billion
- Shareholders’ funds rose to N4.25 trillion
- Capital adequacy ratio printed at a strong 23.2%
This provides a comfortable buffer to support future expansion and absorb potential shocks, positioning the bank for the next phase of growth.
Balance sheet expansion continues
UBA maintained steady growth across key balance sheet lines:
- Deposits: Up 11.8% to N27.2 trillion
- Total assets: Up 9.4% to N33.2 trillion
The bank is now strategically positioned to expand its risk asset base, particularly in high-quality sectors, as macroeconomic conditions gradually improve.
Management expects this to translate into stronger earnings momentum in FY2026 and beyond, with potential for over N1 trillion in incremental growth.
Pan-African operations drive performance
UBA’s diversified African footprint continues to be a major earnings engine for the group.
Its international operations now contribute over 50% of total group assets, revenue, and profit, highlighting the success of its pan-African strategy.
Performance across regions was particularly strong:
- Combined foreign operations profit rose to N312 billion, up from N223 billion
- West Africa: Profit grew by 53%
- East and Central Africa: Profit surged by 61%
- This broad-based growth reinforces UBA’s positioning as a leading African bank with deep regional integration and earnings resilience.
Outlook
With one-off pressures expected to ease and capital buffers firmly in place, UBA appears well positioned to pivot back to stronger profitability.
The combination of balance sheet expansion, improving macro conditions, and continued growth across its African subsidiaries suggests a more robust earnings trajectory heading into FY2026.
If execution holds, the bank’s current positioning could mark the beginning of a renewed growth cycle—one driven less by volatility and more by sustainable, broad-based expansion.
With about N3 Trillion gross earnings and ca N400 billion PAT, I cannot understand why the dividend tray is empty for the final FY 2025
Simple, UBA undertook significant risks that created losses of over N500 billion. I hope lessons are learnt, structures that generated losses reviewed and disciplined, aggressive recovery put in place and we need need assurances that theses will not translate to write offs