UBA To Achieve N500bn CBN Capital Requirement By September
Tony Elumelu, chairman of the United Bank for Africa (UBA) Plc, says the bank will raise N144.8bn in the third quarter (Q3) of 2025 to add to its current capital base of N355.2bn.
Speaking on Friday at the bank’s 63rd annual general meeting (AGM) in Abuja, Elumelu said the move is to meet the N500bn capital base threshold set by the Central Bank of Nigeria (CBN).
Earlier in 2024, the CBN announced an upward review of Nigeria’s minimum capital requirements for commercial, merchant, and non-interest banks. The minimum capital base for banks with international authorisation was increased to N500bn.
The minimum capital base for commercial banks holding national authorisation is N200bn, and for those with regional authorisation, it is N50bn. Merchant banks will also require a minimum capital requirement of N50bn, while non-interest banks holding national and regional authorisations must adhere to new minimum requirements of N20bn and N10bn, respectively.
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.
“This was oversubscribed by N11.6bn and the entire amount of N251.0bn 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 N3.1trn in gross revenue and N767bn in profit after tax for the year ended December 31, 2024.
He said the bank sustained its deposit mobilisation efforts, growing total deposits by 42 percent to N24.65trn from N17.36trn in the corresponding period of 2023.
“Additionally, our loan book expanded by 35 percent to N7.51trn, from N5.55trn. The Group maintained a well-structured and diversified balance sheet, with Total Assets and Shareholders’ Funds closing at N30.32trn and N3.42trn, 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.”
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.
He said, “The group delivered another very strong year, generating gross revenue of N3.2trn, and profit after tax of N767bn. We successfully sustained our deposit mobilization efforts, growing total deposits by 42 per cent to N24.6trn, up from N17.4trn in the corresponding period of 2023.
“These very strong results reflect the execution of our long-term strategy, the hard work of our dedicated staff, providing tangible solutions to real needs and delivering value, innovation, and service to all.
“UBA is proud to support businesses, government, and consumers across Africa globally. It is worth repeating, we serve over 45 million people across four continents, in 24 countries, and with a corporate client base that is truly global. So when your bank is serving 45 million people, that is many countries put together as a population.”
The Group Managing Director (GMD) of UBA, Oliver Alawuba announced that shareholders will receive N102bn 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.
ENDS
UBA To Achieve N500bn CBN Capital Requirement By September is first published on The Whistler Newspaper
