January 12, (THEWILL) — Africa’s Global Bank, United Bank for Africa (UBA), has successfully exceeded the Central Bank of Nigeria’s (CBN) minimum capital requirement of N500 billion, thereby positioning itself favorably for growth and expansion in the post-recapitalisation phase. UBA raised N178.3 billion through a rights issue, elevating its capital base above the N500 billion threshold mandated for Tier 1 banks with international licenses.
This achievement underscores the bank’s robust balance sheet and confirms its adherence to relevant regulatory capital standards. Most importantly, it places the 76-year-old institution in a strong position to navigate the competitive landscape that will emerge following the capitalisation.
This will be evident in the bank’s significant contribution to the financial inclusion strategy through its advanced digital platforms, as well as by building on the global recognition it has gained through recent strategic initiatives. Consequently, it will leverage the advantages of the recapitalisation, which has transformed the Nigerian banking sector, enhancing its financial robustness as it anticipates an impressive performance in FY 2025.
A notable highlight from last year was the bank’s participation in the 80th session of the UN General Assembly (UNGA), which took place from September 15th to September 25th. As is customary, UBA Group organized a series of engaging activities aimed at showcasing Africa’s opportunities and facilitating high-level discussions with global leaders to enhance the continent’s potential.
A significant aspect of the event was UBA’s introduction of an innovative whitepaper that outlines actionable strategies for unlocking Africa’s extensive economic potential, aligning with the bank’s mission to promote sustainable growth throughout the continent. The whitepaper, a pioneering initiative by a prominent African financial institution at UNGA, titled ‘Banking on Africa’s Future: Unlocking Capital and Partnerships for Sustainable Growth’, emphasized opportunities in trade, infrastructure, digital innovation, climate finance, and inclusive growth.
By establishing a framework for collaboration between Africa and the global community, UBA sought to position the continent not merely as a recipient of investment, but as a vital contributor to future global prosperity. By achieving the minimum capital threshold of N500 billion for banks with international licenses, UBA is well-prepared for the subsequent post-recapitalization opportunities upon which it has already laid a solid foundation.
The immediate impact of recapitalization has been a noticeable enhancement of bank balance sheets. For those banks that have successfully met the criteria, capital adequacy ratios now typically reside comfortably in the high teens to mid-twenties, significantly exceeding the CBN’s minimum standards. This has increased their ability to absorb credit losses, endure foreign-exchange shocks, and facilitate greater growth in risk-weighted assets.
Enhanced equity bases have also diminished leverage and alleviated pressure from single-obligor and sectoral exposure limits, providing banks with greater flexibility in capital deployment. Notably, stronger capital buffers have bolstered resilience against naira fluctuations, as losses from foreign-exchange revaluation can now be absorbed with reduced impact on solvency metrics.
For tier-one banks, recapitalization has transformed the strategic dialogue from mere survival to optimization, enabling management teams to concentrate on improving margins, optimizing asset mixes, and fostering sustainable earnings growth rather than being preoccupied with capital adequacy issues. Investor sentiment towards the banking sector has significantly evolved during the recapitalization phase.
Banks that acted promptly and executed effectively are increasingly perceived as structurally stronger, better governed, and more capable of providing stable long-term returns. This perception has resulted in enhanced trading liquidity, increased institutional involvement, and valuation premiums compared to their peers. Instead of concentrating solely on dividend yield, investors are now distinguishing banks based on their capital strength, earnings stability, asset quality, and foreign exchange risk.
THEWILL notes that UBA reported remarkable audited results for the third quarter ending September 30, 2025, showcasing robust growth across all major indicators. Similar to the first two quarters of the recently concluded fiscal year, the bank’s gross earnings increased by 3.0 percent to N2.469 trillion, up from N2.398 trillion recorded in September of the previous year.
Additionally, its net interest income, which was N1.103 trillion at the conclusion of the third quarter in 2024, rose by 6.2 percent to N1.172 trillion during the period in question. The financial report submitted to the Nigerian Exchange revealed a slight decline of 4.1 percent in profit before tax (PBT), which amounted to N578.59 billion compared to N603.48 billion recorded at the end of the third quarter of 2024.
Conversely, profit after tax (PAT) increased by 2.3 percent from N525.31 billion recorded a year prior to N537.53 billion at the end of September 2025. Continuing the growth trend established in the previous two quarters of the year, UBA sustained a very strong balance sheet, with total assets rising to N32.492 trillion, reflecting a 7.2 percent increase from the N30.323 trillion recorded at the end of December 2024.
Furthermore, total deposits increased by 7.7 percent from N24.651 trillion at the end of the previous year to N26.54 trillion in September 2025. UBA’s shareholders’ funds remained robust at N4.301 trillion, marking a 25.8 percent rise from N3.418 trillion recorded in December 2024, which again indicates a strong capacity for internal capital generation and growth.
United Bank for Africa stands as one of the largest employers in the financial sector across the African continent, with a workforce of 25,000 employees globally and serving over 45 million customers worldwide. The bank operates in twenty African nations as well as in the United Kingdom, the United States of America, France, and the United Arab Emirates.
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.
