By :OBSERVERS TIMES
United Bank for Africa (UBA) Plc is on track to meet the Central Bank of Nigeria’s (CBN) newly stipulated N500 billion capital requirement by the third quarter of 2025. This assurance was given by the bank’s chairman, Tony Elumelu, during UBA’s 63rd Annual General Meeting (AGM) held in Abuja on Friday.
Elumelu revealed that UBA plans to raise an additional N144.8 billion by Q3 2025, which will be added to its current capital base of N355.2 billion. This strategic move is in direct response to the CBN’s directive in March 2024, which increased the minimum capital thresholds for various categories of banks. The apex bank has set a deadline of March 2026 for financial institutions to comply, offering options such as capital raising, mergers, or license downgrades.
Highlighting UBA’s proactive approach, Elumelu stated that the bank initiated its capital raising efforts with a rights issue in November 2024. “The rights issue closed in December 2024, offering 6.84 billion ordinary shares at N35 per share to our existing shareholders,” he explained. He further noted the significant investor confidence in UBA, as the rights issue was oversubscribed by N11.6 billion (4.8 percent), with the full N251.0 billion raised having been verified and approved by the CBN.
“The final capital raise is anticipated to be concluded in Q3 2025, significantly ahead of the CBN’s deadline,” Elumelu affirmed. He emphasized that the funds generated from the rights issue would be strategically invested in bolstering the bank’s digital infrastructure and facilitating business expansions, building upon UBA’s 75 years of robust performance.
Impressive 2024 Financial Performance: N3.1 Trillion Gross Revenue and N767 Billion Profit After Tax
Elumelu also shared UBA’s strong financial results for the year ended December 31, 2024, reporting a gross revenue of N3.1 trillion and a profit after tax of N767 billion. He attributed this success to the dedication of the bank’s workforce in providing impactful solutions to clients across various sectors.
“We achieved substantial growth in key areas, with total deposits increasing by 42 percent to N24.65 trillion, up from N17.36 trillion in 2023,” Elumelu stated. “Our loan portfolio also saw a significant expansion of 35 percent, reaching N7.51 trillion from N5.55 trillion.” He further pointed out the bank’s strong and diversified balance sheet, with total assets closing at N30.32 trillion and shareholders’ funds at N3.42 trillion.
Shareholders Approve N5 Dividend, GMD Hints at Potential for Higher Payouts
During the AGM, UBA shareholders approved a total dividend of N5 per share for the financial year 2024. Elumelu clarified that this includes an interim dividend of N2 per share already paid, with a final dividend of N3 per share now approved.
Oliver Alawuba, the Group Managing Director (GMD) of UBA, announced that the total dividend payout to shareholders for 2024 amounts to N102 billion. He also hinted at the potential for even greater returns in the future, noting that UBA currently boasts the highest dividend yield among its peers.
In a move highlighting UBA’s commitment to innovation and customer convenience, the bank had previously announced a partnership with Mastercard in November 2024 to launch a new debit card as part of its 75th-anniversary celebrations.
With its proactive capital raising strategy and consistent strong financial performance, UBA appears well-positioned to navigate the evolving regulatory landscape and continue its growth trajectory in the Nigerian and African financial sectors.
