United Bank for Africa (UBA) Plc, a leading pan-African financial institution, has affirmed its commitment to meeting the Central Bank of Nigeria’s (CBN) recapitalization requirement of N500 billion well ahead of the March 2026 deadline. During the bank’s 65th Annual General Meeting (AGM), Chairman Tony Elumelu assured shareholders that UBA is on track to achieve this target, having already made significant strides through a successful rights issue in 2024. This rights issue, oversubscribed by N11.6 billion, generated N251 billion, which has been verified and approved by the CBN. This, combined with the bank’s existing capital, brings the total to N355.2 billion, leaving a balance of N144.8 billion to be raised, a target UBA expects to achieve by the third quarter of 2025. This proactive approach underscores UBA’s commitment to maintaining its robust financial position and solidifying its role as a major player in the African banking landscape.
The decision to pursue a rights issue, as opposed to a public offering, was a strategic move aimed at prioritizing existing shareholders. Elumelu emphasized the bank’s commitment to protecting shareholder value and avoiding the dilution of wealth that a public offering might entail. This approach reflects UBA’s long-standing philosophy of prioritizing its existing investors and rewarding their loyalty by offering them the first opportunity to participate in the bank’s growth. By allowing existing shareholders to increase their stake, UBA reinforces its commitment to shared prosperity and recognizes the crucial role its investors have played in building the bank’s impressive N3.4 trillion shareholders’ fund. This strategy aligns with UBA’s commitment to building long-term value for all stakeholders.
UBA’s robust financial performance in 2024 further strengthens its position to meet the recapitalization requirement. The bank recorded impressive results, with gross revenue reaching N3.2 trillion and profit after tax totaling N767 billion. These strong figures are attributed to the successful execution of UBA’s long-term strategy and the dedication of its workforce. Key performance indicators, including a 42% surge in customer deposits to N24.6 trillion and a 35% expansion in the loan portfolio to N7.5 trillion, underscore the bank’s continued growth and market penetration. Total assets reached N30.3 trillion, while shareholders’ funds stood at N3.4 trillion, further solidifying UBA’s financial strength and stability.
Beyond financial growth, UBA remains committed to sustainable practices and corporate social responsibility. The bank’s initiatives, such as planting over 4,500 tree seedlings to offset carbon emissions and distributing over 13,000 books through its Read Africa Initiative, highlight its dedication to environmental stewardship and community development. These actions reflect UBA’s recognition of its role as a responsible corporate citizen and its commitment to contributing positively to the communities it serves. This holistic approach underscores UBA’s commitment to balancing financial success with social and environmental responsibility.
UBA’s commitment to enhancing customer experience is at the forefront of its operations. Group Managing Director and CEO, Oliver Alawuba, highlighted the bank’s significant investments in digital platforms and artificial intelligence aimed at improving customer interactions, both digitally and physically. These investments align with the evolving banking landscape and underscore UBA’s dedication to providing seamless and efficient services to its growing customer base of over 45 million across 24 countries. Furthermore, Alawuba emphasized that customer feedback is crucial for service improvement, demonstrating UBA’s commitment to customer-centricity and its proactive approach to addressing customer needs.
The AGM also addressed shareholder returns, with Alawuba acknowledging previous requests for more substantial dividends. He assured shareholders that the bank is working towards increasing dividend payouts, aiming to move closer to, or even surpass, the N7 dividend target. The approved final dividend of N3.00 per share, combined with the interim dividend of N2.00, brings the total dividend payout for 2024 to N5.00 per share, reflecting the bank’s commitment to rewarding its shareholders. The re-election of Tony Elumelu as Chairman and the commendation of management by shareholders further reinforce confidence in UBA’s leadership and strategic direction. The bank’s planned expansion into new markets like France and Saudi Arabia, coupled with improvements in fraud monitoring systems and the establishment of customer fulfillment centers, signals UBA’s ambitious growth trajectory and commitment to providing enhanced customer service.
