United Bank for Africa (UBA) says it will meet the Central Bank of Nigeria’s (CBN) new capital requirement of N500 billion by the third quarter of 2025, well ahead of the March 2026 deadline set by the central bank.
This comes after UBA reported a profit after tax (PAT) of N767 billion for 2024, driven by robust revenue growth and strategic investments.
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The assurance was made by UBA Group chairperson Tony Elumelu at the bank’s 65th Annual General Meeting (AGM) held in Abuja.
“We are committed to meeting the CBN’s N500 billion minimum capital requirement ahead of schedule,” Mr Elumelu said. “We expect to complete the final phase of our recapitalisation process in the third quarter of 2025, well before the March 2026 deadline.”
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In March 2024, the CBN announced a new recapitalisation policy requiring banks with international licences to increase their minimum capital base to N500 billion. UBA, which operates in 20 African countries, as well as in the United Kingdom, the United States, and France, falls within this category.
UBA commenced its recapitalisation process in November 2024 with a rights issue, offering 6.84 billion ordinary shares at N35 each.
The offer, which was oversubscribed by N11.6 billion, marked the beginning of UBA’s efforts to strengthen its capital base.
Mr Elumelu explained that the decision to prioritise existing shareholders in the capital raise was designed to protect their long-term interests.
“If we were selfish, we would do a public offering. But we decided to allow our existing shareholders to invest and share in the growth they have helped create. The investment they’ve made means they are part of the N3.3 trillion wealth we’ve built together,” Mr Elumelu said.
Currently, UBA’s paid-up share capital stands at N116 billion, while shareholders’ funds have grown to N3.3 trillion, a significant increase from a capital base of just $160 million. Mr Elumelu credited the bank’s conservative policy of reinvesting retained earnings for this impressive growth.
Proceeds from the rights issue, he said, would be directed towards expanding the bank’s digital infrastructure and supporting its ongoing business expansion. “These funds will be invested in digital technologies and business growth, ensuring UBA continues its legacy of excellence,” he added.
For the 2024 financial year, UBA posted a profit after tax of N767 billion, with gross revenue rising to N3.19 trillion. The bank’s customer deposits grew by 42 per cent to N24.65 trillion, while its loan book rose by 35 per cent to N7.51 trillion. Total assets closed at N30.32 trillion, and shareholders’ funds reached N3.52 trillion.
The Group Managing Director Oliver Alawuba, who also addressed shareholders at the AGM, described 2024 as a year of “exceptional growth.”
“Our gross earnings grew by 53.6 per cent year-on-year to N3.19 trillion, and our net interest income rose by 116.4 per cent to N1.53 trillion, asserting UBA’s leadership in the financial sector,” Mr Alawuba said.
He also announced a total dividend payout of N5 per share for 2024, an interim dividend of N2 and a final dividend of N3, amounting to N102 billion in total returns to shareholders. “With this dividend yield, we are the highest among our peers,” Mr Alawuba said.
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During the meeting, UBA shareholders re-elected Mr Elumelu as Chairman of the Board and expressed their satisfaction with the bank’s performance. However, some shareholders urged the bank to improve its digital banking efficiency, particularly in rural areas.
One shareholder, Ngozi Okafor, said, “While I’m satisfied with the dividend, UBA should work on reducing downtime on mobile banking, especially in smaller towns. It affects trust.”
Another shareholder, Ibrahim Salisu, praised the decision to prioritise the rights issue over a public offering. “It’s good they didn’t allow new people to come and take what we’ve been building. Let us enjoy our sweat,” he said.
Looking ahead, UBA plans to continue expanding its presence across Africa and key global financial centres, while maintaining a focus on strong governance, digital innovation, and risk management.
