Victor EzejaThe United Bank for Africa (UBA) has raised N355.2 billion out of the N500 billion new capital requirement mandated by the Central Bank of Nigeria (CBN).
Chairman, UBA Group, Mr Tony Elumelu, disclosed this on Friday during the bank’s 65th Annual General Meeting (AGM) held at Transcorp Hilton Abuja.
Join our WhatsApp ChannelPrime Business Africa recalls that the CBN had in March 2024 issued a directive, mandating all commercial banks to raise their capital floor as part of efforts to strengthen the financial institutions to be resilient in supporting growth of Nigeria’s economy, especially the target of achieving a $1 trillion GDP size by 2030.
According to the CBN’s guidelines on the recapitalisation policy, commercial banks with international authorisation were directed to increase their capital base to N500 billion and national banks to N200 billion in 24 months, commencing from April 1, 2024, and terminating on March 31, 2026.
Speaking at the AGM event, Mr Elumelu said UBA’s capital in the year 2024 was N116 billion, but they were able to hit the new capital mark following the rights issue that was launched in November last year.
He said the offer was oversubscribed as N251 billion was verified and approved by the Central Bank of Nigeria.
“However, given that it is a rights issue, we could only take up N240 billion in the amount we set out to raise in the rights issue,” Elumelu stated. “This left an oversubscribed position of N11.6 billion naira, which had to be returned to the shareholders.
“With this success, our new capital is now N355.2 billion,” he clarified.
He thanked the shareholders, for their confidence and commitment to UBA, adding that the remaining N144.8 billion required to meet the regulatory threshold will be raised later this year.
Elumelu assured that the proceeds from the rights issue will be duly invested in additional technologies and business growth in Nigeria, across Africa and the globe. “This will further strengthen our group’s seven decades of impressive performance,” he added.
UBA marked its 75th anniversary in 2024. In the words of Elumelu during the AGM, it is: “75 solid years of unwavering commitment to excellence, innovation, and service.” He asserted that the bank’s 75 years of existence is a testament to its resilience, consistency and firmness of purpose. “Throughout our over seven decades, our group has demonstrated a capacity to adapt, to transform, and to disrupt, establish, and uphold a fundamental responsibility to our customers and shareholders.”
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He recalled that the bank had 20 years ago, unveiled plans for expansion across Africa and the world, and today, the strategy deployed has delivered exceptional results.
UBA’s Financial Results in 2024
Elumelu stated that the UBA Group recorded another feat of strong financial performance in 2024 as it generated gross revenue of N3.2 trillion, and profit after tax of N767 billion.
“We successfully sustained our deposit mobilisation efforts, growing total deposits by 42% to 24.6 trillion, up from 17.4 trillion in the corresponding period of 2023.
“Additionally, our loan book expanded by 35% to 7.5 trillion, up from 5.5 trillion, demonstrating our commitment to fund growth and make our contribution to Nigeria and Africa’s economic transformation. UBA group maintained a well-structured and diversified balance sheet with total assets and shareholders’ funds closing at 30.3 trillion and 3.4 trillion, respectively.
“For context, and because it’s a national bank, and some people here might not understand, the current 3.4 trillion shareholders’ fund is $3.2 billion.
He noted that these strong financial results reflect the execution of the company’s long-term strategy and the hard work of its dedicated staff while “providing tangible solutions to real needs and delivering value, innovation, and service to all.”
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He added that UBA currently supports businesses, government, and consumers across Africa and the globe, serving over 45 million customers across four continents, in 24 countries.
Speaking on how UBA integrates the Environmental, Social, & Governance framework in every aspect of its operations, the group chairman said the company planted 4,550 seedlings across various locations. “This initiative has the potential to offset approximately 212,000 kg of carbon emissions, contributing to a greener and more sustainable future,” he explained.
He highlighted other Corporate Social Responsibility (CSR) activities of the bank in the past year, such as the distribution of over 13,000 books to youth across the continent under the Read Africa Initiative, helping to rekindle the reading culture. “These efforts reflect our dedication to environmental stewardship, financial inclusion, and social progress,” he noted.
According to him, UBA has been recognised as the Bank of the Year in five of the 20 countries it operates in Africa by Bankers Magazine, and also named Best Regional Bank in West Africa at the African Bankers Award.
He ended his remarks by expressing gratitude to all who have contributed to the progress of the bank in the last 75 years, including the management and staff, board members (past and present), and shareholders.
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He extended his appreciation to regulators in various jurisdictions where the bank operates, for their continued support and guidance on compliance and governance matters, assuring that the bank remains committed to upholding the highest standards of integrity and professionalism.
UBA To Invest in Digital Technologies for Growth – Alawuba
Speaking at the event, Group Managing Director/CEO, Mr Oliver Alawuba, said the bank would invest the money raised through the rights issue in digital platforms and improve the digital experience of customers with UBA.
On plans for further international expansion, Alawuba said UBA would soon launch in France and Saudi Arabia, adding that the only way to effectively serve in all of these countries is to invest in digital technology.
He emphasised that feedback from customers help the bank to improve their service experience, adding that “a customer fulfillment center” has been established to address any complaint as quickly as possible.
The UBA GMD/CEO also stressed that the bank is using technology to ensure there is no fraud in customers’ accounts.
He noted that the bank has also increased shareholders’ earnings over the years, stressing that the bank exists because of shareholders.
“We have invested to ensure that any money you deposit with UBA will remain secure. Anytime you access your account, your money will be there. We are improving and doing our best to ensure that the next time we meet, we’ll be able to move closer to, if not exceed, the seven Naira target that has been set for us,” Alawuba added.
Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.
