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Sunday, June 16, 2024

UBA Shareholders Approve Bank’s Recapitalization Plan

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The United Bank for Africa, UBA Plc shareholders have unanimously approved the bank’s capital raise drive to meet the new Central Bank of Nigeria, CBN’s capital base.

The shareholders authorised the board of directors of the bank to raise additional capital through the issuance of securities comprising ordinary shares, preference shares, bonds or any other instruments in Nigerian and or international capital market.

They said in a meeting in Abuja on Sunday, that the additional capital raise could be through public offering, private placements and rights issues.

The shareholders also approved the final dividend of N78.7 billion for the 2023 financial year, representing N2.30 per share.

The bank had earlier paid an interim dividend of 50k per share, bringing the total dividend to N2.80 per share.

The News Agency of Nigeria also reports that the CBN had on March 29, directed commercial banks in the country with international authorisation to shore up their capital base to N500 billion and national banks to N200 billion.

Similarly, non-interest banks with national and regional authorisation would increase their capital to N20 billion and N10 billion respectively.

Princess Adele Akintayo, a shareholder, appealed to the bank to work toward meeting the recapitalisation requirements of the CBN.

Mukhtar Mukhtar, the chairman, Trusted Shareholders Association of Nigeria, commended UBA Plc for their outstanding performance in 2023 financial year.

He said the bank had carved a niche for itself both regionally and globally.

Another shareholder, Hamza Ridhwan, appealed to the company to raise its dividend to N5 per share to meet up with the economic challenges.

Mr Ridhwan commended the company for the prompt payment of their dividends.

Another shareholder, Patrick Ajudua, expressed optimism that the company would increase its dividends by end of the 2024 Fiscal Year.

Tony Elumelu, the chairman, Board of Directors of UBA Plc, assured shareholders that the bank would meet up and even surpass the recapitalisation deadline.

Mr Elumelu called on shareholders to reinvest their dividends, saying that his team would re-invest 100 per cent of theirs.

He said the bank generated a gross revenue of N2.08 trillion and profit after tax of N607.69 billion.

Mr Elumelu said the bank sustained its deposit mobilisation efforts, growing total deposits by 93 per cent to N17.36 trillion in 2023 from N8.99 trillion in the corresponding period of 2022.

”Additionally, the loan book expanded by 61 per cent to N5.55 trillion, from N3.44 trillion.

”The bank maintained a well-structured and diversified balance sheet, with Total Assets and Shareholders’ AF Funds closing at N20.65 trillion and N2.03 trillion respectively,” he said.

Oliver Alawuba, the Group Managing Director of UBA Plc, said the growth of its earnings were fuelled by an increase in net interest.

Mr Alawuba said the growth was due to a strong expansion in loan portfolio, higher net interest margins and contributions from foreign exchange operations.

He assured that the group would continually work toward ensuring increased dividends for shareholders.


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