UBA shareholders return Elumelu as chairman, says Bank will meet CBN’s N500bn recapitalisation in Q3 2025
Newly returned chairman of United Bank for Africa (UBA) Plc, Tony Elumelu has assured that the bank will raise N144.8 billion in the third quarter (Q3) of 2025 to add to its current capital base of N355.2 billion.
Speaking on Friday at the bank’s 63rd Annual General Meeting (AGM) in Abuja, Elumelu said the move is to meet the N500 billion capital base threshold set by the Central Bank of Nigeria (CBN).
In March 2024, the CBN raised the capital requirement for merchant, non-interest banks, and commercial banks.
Banks have until March 2026 to meet the new requirement, and they can raise more capital, merge with others, or downgrade their licences to fit their capital level.
Elumelu said, in line with the CBN’s directive, UBA commenced its capital raise with a rights issue in November 2024.
“The rights issue closed in December 2024 with 6.84 billion ordinary shares of 50 kobo each offered to existing shareholders at N35 per share,” he explained.
“This was oversubscribed by N11.6 billion (4.8 percent) and the entire amount of N251.0 billion has been verified and approved by the Central Bank of Nigeria (CBN).
“The final capital raise is expected to be completed in Q3 2025, well ahead of the CBN deadline.
“Proceeds from the rights issue will be utilised to invest in additional digital technologies and business expansions that will strengthen the bank’s seven and a half decades of impressive performance.”
Sharing the financial performance for the year, Elumelu said the bank recorded N3.1 trillion in gross revenue and N767 billion in profit after tax for the year ended December 31, 2024.
“We successfully sustained our deposit mobilisation efforts, growing total deposits by 42 percent to N24.65 trillion from N17.36 trillion in the corresponding period of 2023,” he said.
“Additionally, our loan book expanded by 35 percent to N7.51 trillion, from N5.55 trillion. The Group maintained a well-structured and diversified balance sheet, with Total Assets and Shareholders’ Funds closing at N30.32 trillion and N3.42 trillion, respectively.
“Behind each of these figures is the everyday work of our dedicated staff, providing tangible solutions to real-world needs, delivering value to consumers, businesses, and governments.
“UBA supports consumers across Africa and globally, seeking secure and convenient payment methods, businesses requiring modern payment acceptance solutions, and issuers and acquirers in need of innovative offerings for their customers.
“Furthermore, we facilitate governments in promptly distributing payments to individuals during crucial times of need.”
Meanwhile, at the bank’s AGM, shareholders voted to approve a cumulative dividend of N5 for the financial year ended December 31, 2024.
Elumelu explained that the bank paid an interim dividend of N2 per share during the year and proposed a final dividend of N3 per share, which was approved by the shareholders.
The shareholders also re-elected Elumelu as the Chairman, Board of Directors of the Bank.
Group Managing Director (GMD) of the Bank, Oliver Alawuba, announced that shareholders will receive N102 billion in dividends for the 2024 financial year, hinting that a higher payout is feasible for the next year.
“When you look at the dividend yield, we are the highest among our peers, and we continue to provide that,” the GMD said.
