United Bank for Africa (UBA) Plc has reaffirmed its commitment to delivering strong growth, enhanced shareholder value and competitive dividends, even as it navigates regulatory reforms and macroeconomic headwinds across its markets.
Speaking at the bank’s Investor Conference, the Group Managing Director/Chief Executive Officer, Oliver Alawuba, disclosed that UBA’s African subsidiaries are increasingly driving growth, contributing 53 per cent of profit before tax (PBT). He noted that the bank remains focused on expanding its footprint across 20 African countries including Nigeria while leveraging digital channels to improve efficiency and customer experience.
“We will continue to leverage technology and innovation to drive efficiency, expand digital income streams, and deliver superior customer experiences,” Alawuba said, stressing that UBA’s diversified operations remain a strong buffer against local economic shocks.On the bank’s recently concluded second rights issue, Alawuba assured investors that the exercise was successful, attracting significant interest despite volatility in the capital market.The rights issue, priced at N50 per share, attracted strong investor interest despite market price fluctuations, with shares remaining actively traded on the Nigerian Exchange.
The second round is expected to raise approximately N154 billion to support the bank’s expansion and recapitalisation objectives.“We are waiting for regulators to complete verification, but the response has been very supportive,” he stated.Alawuba also announced the bank’s exit from the Central Bank of Nigeria’s (CBN) loan forbearance programme, with the apex bank approving dividend payments to shareholders within days.The bank’s Executive Director of Finance and Risk Management, Ugo Nwaghodoh, addressed concerns on loan forbearance, capital adequacy and asset quality. He explained that all forbearance loans had been written off in line with Central Bank of Nigeria (CBN) approval, ensuring no residual impact on the bank’s books.
He also clarified that while Nigerian operations recorded fair value losses of N123 billion from maturing FX swaps in the first half of 2025, the Group’s diversified portfolio mitigated the impact.Nwaghodoh further provided guidance for the 2025 financial year, projecting 20 per cent deposit growth, 10 per cent loan growth, a 6.5 per cent non-performing loan (NPL) ratio, and 20 per cent return on average equity.“Despite pressures in some markets, UBA remains well immunised and balanced in terms of performance,” he said.Responding to investors’ concerns on dividend outlook, Alawuba assured that shareholders could expect a very competitive payout, consistent with the bank’s track record. He also welcomed ongoing discussions with the government on the newly introduced capital gains tax, noting that while it poses challenges for capital raising, UBA remains optimistic that reforms will ultimately support private sector growth.The GMD reiterated that UBA’s strategy is anchored on resilience, sustainability and disciplined capital management.“Together, we are building not just a bank, but Africa’s global bank that defines the future of financial services, supports inclusive growth, and delivers enduring value to investors,” he affirmed.
On dividend policy, the GMD maintained that UBA remains committed to competitive dividend yields, noting that the bank has consistently ranked at the top or par with industry peers over the past three years.The bank’s digital strategy also received attention, with management revealing a deliberate migration of customers from USSD platforms to other digital channels following disputes with telecommunications companies. This strategic shift has resulted in significant growth in mobile and internet banking transactions.Alawuba projected improved fee and commission income in the second half, citing stabilised foreign exchange rates, improved FX liquidity, and the resumption of international card transactions for Nigerian customers. “The improvement will come very strongly in this half year. So, we’re going to end the year quite well,” he assured investors.
On asset quality, management expressed confidence that Stage 2 loans would not experience significant adverse migration, anticipating instead that improving macroeconomic conditions could facilitate reclassification from Stage 2 to Stage 1.Addressing concerns about market valuation of the African operations, Alawuba expressed confidence that increased awareness and value realisation from the bank’s continental footprint would eventually reflect in its market capitalisation.”I believe that we are investing too much in those countries to pursue these opportunities that we have. We also think at some point in time, the Western public will realise the potentials that lie in these countries that we are investing in,” he stated.UBA, which serves over 45 million customers across Africa and beyond, continues to position itself as a leading pan-African financial institution with growing influence in global markets.
