United Bank for Africa Plc reported an 11.8 per cent rise in customer deposits, reaching N27.2 trillion as of December 31, 2025, up from N24.3 trillion the previous year. The increase was disclosed in the bank's audited financial results published on the Nigerian Exchange Ltd. Total assets grew 9.4 per cent to N33.2 trillion, while gross earnings fell slightly to N3.09 trillion from N3.19 trillion in 2024. Group Managing Director Oliver Alawuba attributed the performance to the resilience of UBA's pan-African strategy despite macroeconomic pressures.
Alawuba stated the bank completed an oversubscribed capital raising exercise, securing N395 billion in additional capital to support expansion and lending. He highlighted investments in digital infrastructure to boost income from payment and digital services. Non-recurring charges, including N331 billion in loan loss provisions and N227 billion in fair value losses on derivatives, impacted profitability. These losses are not expected to repeat at the same scale, with recovery efforts now underway.
The recovery team has been reinforced, and all future recoveries will be recorded in profit and loss from 2026. UBA's African operations contributed over 50 per cent of total assets, revenue, and profit, with West Africa's profit rising 53 per cent and Eastern and Southern Africa's up 61 per cent. Alawuba projected earnings growth exceeding N1 trillion in the current financial year. Executive Director Ugo Nwaghodoh noted shareholders' funds reached N4.25 trillion, with a capital adequacy ratio of 23.2 per cent.
Oliver Alawuba points to strong deposit growth while acknowledging a dip in earnings due to massive non-recurring losses, raising questions about the real cost of that balance sheet expansion. The N331 billion in loan provisions and nearly N500 billion in derivative and FX-related losses suggest risks are still material despite claims of stability. Shareholders may welcome the N395 billion capital raise and recovery plans, but the burden of past exposures remains on the books. The promise of N1 trillion in future earnings hinges on recoveries that have yet to be realised.
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