September 22, (THEWILL) — The robust performance of Africa’s Global Bank, United Bank for Africa (UBA) Plc, in the first-half of 2025, indicates a strong balance sheet expansion to equip it for the post-recapitalisation competition in the first quarter of 2026.
The bank’s strong balance sheet expansion is driven by increased customer deposits and strong earnings performance, even within a challenging macroeconomic environment.
This growth is also supported by analysts’ expectations for continued expansion of earning assets due to prevailing interest rates and the bank’s diversified operational footprint.
At the end of the first two quarters of the year, and despite the tough global macroeconomic climate in Nigeria and major countries in Africa where the bank operates, UBA’s gross earnings grew by 17.28%, rising from N1.371 trillion in June 2024 to N1.608 trillion in the period under review.
Interest income also increased by 32.89% from N1.003 trillion in June last year to N1.334 trillion, while total assets went up by 9.71% to N33.3 trillion up from N30.3 trillion recorded in December 2024. Total Customer deposits also leapt by 11.9% in the same period to close at N27.6 trillion up from N24.6 trillion recorded at the end of 2024.
The results also showed that profit after tax which stood at N316.36 billion in June 2024, rose by 6.06% to close the half year at N335.53 billion, while profit before tax dropped slightly from N401 billion to N388 billion in the period under consideration. Also, the banks’ shareholders’ funds remained strong as it increased by 23% from N3.41 trillion in December 2024, to N4.22 trillion in June 2025.
Further pointer to its strong balance sheet stance is its total Capital Adequacy Ratio (CAR) for the period ending June 30, 2025, which stands at 33.88%. This figure, which is significantly above the minimum required by regulatory standards, indicates the bank’s strong financial position, with its Tier-1 capital at 33.42% of its risk-weighted assets, also well above the minimum.
“These suggest a strong balance sheet position of the bank compared with peers during the period. This will place it ahead of the strong competition environment that would emerge at the end of the recapitalisation exercise in the first quarter of 2026,” said Dr Chris Agumadu, an investment analyst.
Strong earnings growth provides capital for further asset expansion. UBA stands out for its strong and diverse revenue streams, driven by a significant and growing pan-African network that contributes substantially to its earnings, alongside robust performance in its domestic Nigerian operations.
Analysts also project increased earning assets due to high interest rates and continued diversification of profit contributions from international operations.
Industry experts also note that the bank’s ability to diversify income, particularly from its large electronic banking business and government securities, also contributes to its competitive earnings performance compared to peers.
Specifically on FY 2025 outlook, investment analysts project a strong spike in core income growth supported by elevated interest rates, which is expected to drive asset growth. UBA’s international operations are expected to provide sustained top-line growth, contributing to a more diversified and robust balance sheet.
UBA’s Group Managing Director/Chief Executive Officer, Mr. Oliver Alawuba, has expressed optimism over the bank’s ability to consistently delivering long-term value to its shareholders.
“UBA’s first half results highlight the strength of our business and the trust our customers continue to place in us. We delivered strong double-digit earnings growth across our markets, with Profit After Tax rising year-on-year to N335 billion, from N316 billion, underscoring the resilience of our business and the success of our strategy,” Alawuba said while commenting on the bank’s half-year results.
On the bank’s Rights Issuance Programme (that ended on September 19), the GMD had assured shareholders and investors that UBA remains on track with its financial goals and projections for 2025.
“We have made significant progress on our capital raising program. Phase I of our Rights Issue was successfully completed, enhancing our capital by N234.3 billion and providing a stronger buffer for growth and expansion across our markets. With Phase II currently underway, we remain firmly on track to meet the new capital requirements by the end of the year.”
UBA’s Executive Director Finance & Risk Management, Ugo Nwaghodoh, pointed out that the Group delivered strong top line growth, with gross earnings rising to N1.61 trillion, driven by a 32.9% increase in interest income and a 14.6% uplift in net interest Income.
“Deposits expanded by 11.9% to over N27.5 trillion, supporting balance sheet growth to N33.3 trillion, while shareholders’ funds rose 23.3% to N4.22 trillion. Capital adequacy and liquidity ratios remain well above regulatory thresholds and provide significant buffers to support continued growth”, he explained.
On the plans for the rest of the year, Nwaghodoh said, “Our priority is to pursue growth and expansion scale and market share across markets, driving efficiency gains, scaling digital-led income streams and maintaining disciplined risk management.”
United Bank for Africa (UBA) Plc is a leading Pan-African financial institution, offering banking services to more than forty-five million customers, across 1,000 business offices and customer touch points in 20 African countries. With presence in New York, London, Paris and Dubai, UBA is connecting people and businesses across Africa through retail, commercial and corporate banking, innovative cross-border payments and remittances, trade finance and ancillary banking services.
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
