Union Bank of Cameroon (UBC) closed the 2025 financial year with sharply higher earnings as the bank accelerated lending activity and prepared for a major capital increase.

During the annual general meeting held May 6 in Douala, shareholders approved financial statements showing net profit rose more than 56% to CFA5 billion, up from CFA3.2 billion in 2024.

The results reflect stronger growth across most of the bank’s core business indicators. Customer deposits increased 11.5% year over year to CFA146 billion, compared with CFA131 billion in 2024.

The strongest growth came from lending activity. UBC nearly doubled its loan portfolio over the year, increasing outstanding credit from CFA24 billion to CFA48.7 billion. The bank said the increase reflects a stronger position in financing the local economy, an increasingly competitive segment of Cameroon’s banking market.

UBC also reported improved operational efficiency. Its cost-to-income ratio fell to 55% from 58% a year earlier, reflecting tighter cost control and stronger operational performance.

Shareholders also approved CFA2 billion in dividend payments. The decision signals that the bank now sees its financial position as strong enough to both reward shareholders and reinforce confidence in its stability.

The most significant decision taken during the meeting, however, was the planned increase of the bank’s capital to CFA25 billion. Beyond strengthening the balance sheet, the move is intended to support future growth and reinforce UBC’s position in Cameroon’s banking sector.

The operation still requires approval from the Central African Banking Commission (COBAC) before taking effect. The capital increase also responds to new regional banking regulations.

COBAC recently raised the minimum capital requirement for banks from CFA10 billion to CFA25 billion, forcing existing lenders to comply with the new threshold during a transition period. For UBC, the recapitalization therefore serves both as a growth strategy and as a regulatory adjustment.

Board chairman Pr. Touna Mama described the 2025 results as a “decisive step” in the bank’s growth trajectory and praised the work of the management team. With stronger earnings, rising deposits, rapid loan growth, and a planned capital increase, UBC now enters a new phase of expansion.

In Cameroon’s banking market, which includes 19 banks and intense competition, the challenge for UBC is no longer simply improving financial performance. The bank now seeks to turn that momentum into a stronger long-term position in financing the economy while aligning itself with tougher regional banking standards.

Source: Business in Cameroon