United Bank for Africa Plc (UBA) has delivered a resilient financial performance in the first half of 2025, posting a profit after tax of N335.53 billion, representing a 6.06 percent increase from the N316.36 billion recorded in the corresponding period of 2024.
The results, released on the Nigerian Exchange Limited platform on Thursday, underscore the pan-African lender’s ability to navigate challenging macroeconomic conditions across its operating territories while maintaining growth momentum in key performance indicators.
Revenue Streams Show Robust Growth
The bank’s gross earnings surged 17.28 percent to N1.608 trillion, up from N1.371 trillion in the prior year period, driven primarily by significant growth in interest income. Interest earnings jumped 32.89 percent year-on-year to N1.334 trillion from N1.003 trillion, reflecting the bank’s strategic positioning in a rising interest rate environment across multiple African markets.
This strong revenue performance comes against a backdrop of persistent inflationary pressures and currency volatility in Nigeria and other key African economies where UBA maintains significant operations.
Balance Sheet Expansion Continues
UBA’s balance sheet demonstrated continued expansion, with total assets growing 9.71 percent to N33.3 trillion from N30.3 trillion at the end of 2024. Customer deposits, a critical metric for banking operations, rose 11.9 percent to N27.6 trillion, up from N24.6 trillion recorded at year-end 2024, indicating sustained customer confidence despite economic headwinds.
The growth in deposits provides UBA with increased lending capacity and supports its expansion strategy across its 20 African country footprint, which includes strategic offices in New York, London, Paris, and Dubai.
Capital Position Strengthened
Perhaps most notably, shareholders’ funds surged 23 percent to N4.22 trillion from N3.41 trillion in December 2024, reflecting the bank’s successful capital-raising initiatives and retained earnings growth. This substantial increase positions UBA favorably for future regulatory requirements and expansion opportunities.
However, the bank’s profit before tax declined to N388 billion from N401 billion in the previous year, suggesting increased tax provisions or other below-the-line adjustments impacted the final pre-tax position.
Management Outlook Remains Optimistic
Group Managing Director and CEO Oliver Alawuba emphasized the bank’s strategic focus on long-term value creation. “UBA’s first-half results highlight the strength of our business and the trust our customers continue to place in us,” Alawuba stated, highlighting the double-digit earnings growth achieved across the bank’s diverse geographic markets.
The CEO provided updates on UBA’s ongoing Rights Issuance Programme, confirming that Phase I was completed, raising N234.3 billion in additional capital. With Phase II currently underway, management expressed confidence in meeting new regulatory capital requirements by year-end.
Strategic Priorities for Remainder of 2025
Executive Director of Finance & Risk Management Ugo Nwaghodoh outlined the bank’s strategic priorities for the second half, focusing on market share expansion, operational efficiency improvements, and digital transformation initiatives. The bank maintains capital adequacy and liquidity ratios well above regulatory minimums, providing substantial buffers for continued growth investments.
UBA’s performance reflects the broader resilience of well-capitalized African banks in navigating complex operating environments while capitalizing on growth opportunities across the continent’s developing financial services sector.
The bank’s diversified geographic footprint continues to provide natural hedging against country-specific economic challenges while positioning it to benefit from Africa’s long-term growth trajectory.
WHAT YOU SHOULD KNOW
United Bank for Africa (UBA) delivered solid first-half 2025 results with profit after tax rising 6% to N335.53 billion despite challenging economic conditions across Africa. The standout performance came from a 33% surge in interest income and a remarkable 23% increase in shareholders’ funds to N4.22 trillion, driven by successful capital-raising efforts.
With strong deposit growth of 12% and expansion across 20 African countries plus international offices, UBA demonstrates resilience and positions itself well for future regulatory requirements and continued growth across the continent’s banking sector.
