United Bank for Africa Plc’s Strong Financial Performance in H1 2025
United Bank for Africa Plc (UBA) has announced robust financial results for the first half of 2025, demonstrating resilience and growth amidst challenging macroeconomic conditions across its operational footprint. The bank’s strategic focus on diversified earnings, digital innovation, and prudent risk management has contributed to its positive performance. The half-year results showcase substantial growth in key financial metrics, including profit after tax, gross earnings, interest income, total assets, and customer deposits, reaffirming UBA’s position as a leading financial institution in Africa.
UBA’s profit after tax for the half-year ended June 30, 2025, reached N335.53 billion, representing a 6.06% increase compared to N316.36 billion in the same period of the previous year. This growth in profitability is a testament to the bank’s ability to navigate economic headwinds and capitalize on emerging opportunities. The bank’s gross earnings witnessed a significant surge of 17.28%, reaching N1.608 trillion compared to N1.371 trillion in the corresponding period of 2024. This impressive growth in gross earnings underlines the effectiveness of UBA’s diversified business model and its ability to generate revenue from various sources.
Interest income, a crucial component of UBA’s earnings, experienced a remarkable 32.89% increase, soaring from N1.003 trillion in June 2024 to N1.334 trillion in June 2025. This surge in interest income highlights the bank’s success in effectively managing its lending activities and optimizing its interest rate margins. Further solidifying its financial strength, UBA’s total assets expanded by 9.71%, reaching N33.3 trillion compared to N30.3 trillion at the end of 2024. This growth reflects the bank’s continued expansion and its ability to attract and retain customers. Customer deposits also exhibited robust growth, increasing by 11.9% to reach N27.6 trillion compared to N24.6 trillion at the end of 2024, underscoring the trust customers place in UBA’s stability and service offerings.
While profit after tax showed healthy growth, profit before tax experienced a decline from N401 billion to N388 billion during the period under review. This reduction can be attributed to various factors, including increased operating expenses and other non-recurring items. However, it is noteworthy that the bank’s shareholders’ funds remained strong, exhibiting a remarkable 23% increase, rising from N3.41 trillion in December 2024 to N4.22 trillion in June 2025. This substantial growth in shareholders’ funds reinforces the bank’s financial stability and provides a solid foundation for future growth and expansion.
UBA’s management attributes the positive performance to its strategic focus on delivering long-term value to shareholders. Mr. Oliver Alawuba, the Group Managing Director/Chief Executive Officer of UBA, emphasized the resilience of the bank’s business model and the successful execution of its strategic initiatives. He highlighted the strong double-digit earnings growth across various markets, reflecting the effectiveness of UBA’s diversified operations. Furthermore, Mr. Alawuba underscored the bank’s ongoing Rights Issuance Programme, designed to strengthen its capital base and bolster its growth trajectory. The successful completion of Phase I of the Rights Issue, raising N234.3 billion, has significantly enhanced UBA’s capital position, providing a solid foundation for future expansion.
Mr. Ugo Nwaghodoh, UBA’s Executive Director of Finance & Risk Management, provided further insights into the bank’s financial performance. He highlighted the strong top-line growth, with gross earnings reaching N1.61 trillion, driven by substantial increases in both interest income and net interest income. The expansion of deposits and the growth in shareholders’ funds, coupled with robust capital adequacy and liquidity ratios, further solidify UBA’s financial strength. Looking ahead, Mr. Nwaghodoh emphasized the bank’s commitment to pursuing growth and expanding its market share across various regions. UBA’s strategic priorities include driving efficiency gains, scaling its digital-led income streams, and maintaining a disciplined approach to risk management, which will be crucial for navigating the evolving economic landscape and achieving its long-term objectives. UBA’s extensive pan-African presence, coupled with its global reach through operations in New York, London, Paris, and Dubai, positions it to capitalize on opportunities in diverse markets and deliver sustained value to its stakeholders.
