The Chairman of United Bank for Africa Plc (UBA), Mr. Tony Elumelu, has assured shareholders and the financial community that the bank will meet the Central Bank of Nigeria�s (CBN) N500 billion recapitalisation requirement well ahead of the March 2026 deadline for commercial banks with international authorisation. Elumelu made this disclosure while addressing shareholders during the bank�s 65th Annual General Meeting (AGM) held at the Transcorp Hilton Hotel in Abuja on Friday.
Elumelu explained that UBA had already made substantial progress towards achieving the target, including the successful completion of a rights issue earlier in 2024, which significantly bolstered the bank�s capital base.
�Our capital in early 2024 stood at N116 billion. However, following the rights issue we launched in November last year, which was oversubscribed, we successfully raised and verified N251 billion, as approved by the Central Bank of Nigeria,� Elumelu stated.
He detailed that the rights issue, which closed in December, involved offering 6.84 billion ordinary shares of 50 kobo each to existing shareholders at a price of N35 per share. Due to the oversubscription�where shareholder interest exceeded the initial offering by N11.6 billion�the bank was required to return the excess to investors, accepting a final figure of N240 billion. This raised UBA�s capital base to N355.2 billion. According to Elumelu, the remaining N144.8 billion needed to meet the CBN�s recapitalisation requirement would be raised through additional capital initiatives, which are scheduled for completion before the end of the third quarter of 2025.
�The final phase of our capital raise will be concluded well before the CBN deadline,� he assured shareholders confidently.
In explaining the choice of a rights issue rather than a public offering, Elumelu stressed that the move was aimed at protecting and enhancing shareholder value by preventing dilution of existing ownership.
�If we were thinking selfishly, we could have opted for a public offering, inviting external investors. Instead, we chose to give our loyal shareholders the first opportunity to invest further. We pay dividends, and many of you reinvest it back into the bank. By doing so, you are sharing in the N3.4 trillion wealth that you helped to create,� he said.
He further explained that UBA�s philosophy of reinvesting retained earnings over the years rather than paying out all profits had been instrumental in strengthening the bank�s financial standing.
�Our paid-up share capital stands at N116 billion, but our shareholders� fund is now N3.4 trillion�that�s more than $3.2 billion. Given that strength, why should we dilute your efforts by bringing in new investors to take part in what you have helped build?� he added.
According to Elumelu, proceeds from the recapitalisation will be strategically deployed to bolster the bank�s digital capabilities, enhance customer experience, and fund an ambitious expansion plan across Nigeria, Africa, and new international markets.
He also celebrated UBA�s strong performance during the 2024 financial year. Gross earnings rose to an impressive N3.2 trillion, while profit after tax hit N767 billion. Total customer deposits increased by 42% to N24.6 trillion, and the loan portfolio expanded by 35%, reaching N7.5 trillion. Total assets and shareholders� funds closed the year at N30.3 trillion and N3.4 trillion respectively.
�These results reflect the successful execution of our long-term strategy and the dedication of our staff in delivering value and innovation for our customers and shareholders alike,� he remarked.
Highlighting UBA�s status as a global banking powerhouse, Elumelu shared that the bank now serves over 45 million customers across 24 countries on four continents, cementing its reputation as Africa�s truly global bank.
Beyond financial success, Elumelu reaffirmed UBA�s commitment to environmental sustainability and social responsibility. He noted that in 2024, the bank planted 4,550 tree seedlings, offsetting approximately 212,000 kilograms of carbon emissions. Additionally, UBA distributed over 13,000 books through its Read Africa Initiative, aimed at promoting literacy and encouraging a reading culture among young Africans.
In recognition of its achievements, UBA was named Bank of the Year in five African countries by The Banker magazine and also clinched the Best Regional Bank � West Africa award at the African Banker Awards.
�To our esteemed shareholders, we deeply appreciate your unwavering confidence in our strategy and vision. Your support remains critical as we strive to create enduring value for all stakeholders,� Elumelu concluded.
During the meeting, shareholders also engaged directly with the bank�s management. Responding to their questions, the Group Managing Director and Chief Executive Officer of UBA, Mr. Oliver Alawuba, highlighted the bank�s ongoing investments in technology and customer service.
�The customer is at the heart of everything we do. We are investing significantly in digital platforms and artificial intelligence to enhance customer experience across all touchpoints�whether online or in our physical branches,� Alawuba said.
He noted that part of the proceeds from the recapitalisation would be used to enhance fraud detection and monitoring systems, fund expansion into new markets such as France and Saudi Arabia, and establish customer fulfillment centers aimed at addressing customer issues more swiftly and efficiently.
�What you call complaints, we call valuable feedback. We take every piece of feedback seriously as it helps us to continuously improve your experience,� he emphasized.
Alawuba also acknowledged the shareholders� longstanding request for better dividend returns, assuring them that the bank was committed to maintaining strong financial performance and delivering even greater rewards in the future.
�We have made remarkable progress and are committed to surpassing the N7 per share dividend target set by shareholders in the coming years,� he said confidently.
Shareholders approved a final dividend of N3.00 per share, bringing the total dividend payout for the 2024 financial year to N5.00 per share, including the N2.00 interim dividend paid earlier. They also unanimously re-elected Mr. Tony Elumelu as Chairman of the Board, praising his leadership and the management team�s commitment to strong corporate governance and consistent growth.
