This report does not constitute a rating action. ALAC--Additional loss-absorbing capacity. CRA--Comparable ratings analysis. GRE--Government-related entity. ICR--Issuer credit rating. SACP--Stand-alone credit profile. Overview Key strengths Key risks Strong domestic franchise and geographic diversification support earnings growth through the cycle. Challenging operating environment in Nigeria. Broad and stable retail depositor base leading to lower cost of funding compared to peers. High single-name obligor concentration. Sovereign creditworthiness constrains our ratings on the bank. We forecast nonperforming loans (NPLs) will increase to 6.9% of gross customer loans in 2025 (6.2% as of June 30, 2025) and slightly decrease to 6.4% in 2026. That said, we note that United Bank for Africa (UBA or the group) did not record a significant increase in NPLs
