United Bank for Africa (UBA) Q4 2025 earnings summary

Executive summary

• Achieved strong balance sheet growth in FY2025, with total assets up 9.4% year-over-year to ₦33.2 trillion, driven by an 11.8% increase in deposits and a 24.4% rise in shareholders' equity.

• Gross earnings reached ₦3.1 trillion, but profit after tax declined 47% to ₦405 billion due to a significant drop in FX revaluation gains and higher impairment charges.

• Maintained a diversified income base, with interest income up 9.8% and non-interest income stable, despite a 177% decline in trading income and a 94% drop in FX gains.

• Customer deposits grew robustly, with savings up 18% and term deposits up 30%, reflecting strong customer confidence and market share expansion.

Financial highlights

• Net interest income rose 4.2% to ₦1.62 trillion, while operating income fell 12.1% to ₦1.86 trillion year-over-year.

• Operating expenses increased 4.7% to ₦1.11 trillion, and impairment charges surged 29.9% to ₦329 billion.

• Cost-to-income ratio worsened to 59.4% from 49.5%, and net interest margin declined to 7.3% from 9.15% year-over-year.

• Return on average equity dropped to 10.55% from 28.14%, and return on average assets fell to 1.27% from 3.01%.

• Capital adequacy ratio remained strong at 23.2%, well above regulatory requirements.

Outlook and guidance

• FY2026 guidance targets 15% deposit growth, 10% loan growth, cost of risk at 3.0%, and NPL ratio at 5.5%.

• Return on average equity is projected to double to 20%, and return on average assets to rise to 2.5%.

• Cost-to-income ratio (ex-impairment) expected to improve to 55%, and net interest margin to 7.5%.