UBA 2025 Full Year Results: Profit Falls 47 Percent to N404.7 Billion but Assets Grow to N33.2 Trillion

United Bank for Africa has released its audited financial results for the full year ended December 31 2025, reporting a profit after tax of N404.7 billion, a 47.2 percent decline from the N804 billion recorded in 2024. The sharp fall in profitability was driven by two primary factors: a material loan loss provision of N331 billion and a net fair value loss on derivatives of approximately N278 billion, both of which management has described as non-recurring in nature and not expected to repeat at the same scale in 2026.

Despite the profitability decline, UBA's underlying business fundamentals showed genuine strength. Total assets grew 9.4 percent to N33.2 trillion from N30.3 trillion at the end of 2024. Customer deposits expanded 11 percent to N23.95 trillion, reflecting strong brand loyalty and customer confidence across the bank's Pan-African footprint. Shareholders' funds increased by 24.4 percent to N4.25 trillion following a successful rights issue that raised N395 billion in additional capital.

Why Profits Fell So Sharply

The 2025 results reflect what analysts are describing as a kitchen-sink year for UBA. The bank chose to proactively recognise potential credit losses through the N331 billion impairment charge rather than allowing problematic exposures to accumulate. The derivative losses of N278 billion represent a reversal of the foreign exchange gains that inflated UBA's 2024 results, which benefited enormously from naira revaluation effects that were always understood to be one-time in nature.

UBA Group Managing Director Oliver Alawuba acknowledged the difficult year but pointed to the strategic rationale behind the provisions. The bank has strengthened its recovery team and is aggressively pursuing delinquent loan facilities, with management projecting that recoveries will flow directly into profit and loss from 2026 onwards and contribute to what Alawuba described as expected earnings growth of over N1 trillion in the current financial year.

Pan-African Operations Deliver Strong Growth

One of the most positive aspects of UBA's 2025 performance was the continued strength of its operations outside Nigeria. West Africa operations recorded 53 percent profit growth and East and Southern Africa delivered a 61 percent increase, demonstrating the scalability and geographic diversification of a bank that operates in 20 African countries as well as the United Kingdom, the United States, France, and the UAE.

Dividend Cut and Capital Conservation

Directors did not propose a final dividend for 2025, with the total payout for the year standing at N0.25 per share compared to N5.00 in 2024. The dramatic dividend reduction reflects the bank's decision to conserve capital following the rights issue and position itself for the earnings recovery it is projecting for 2026. UBA shares have responded positively with a 32 percent year-to-date gain on the Nigerian Exchange, suggesting investors are looking through the 2025 results to the recovery expected in the current year.