From Adanna Nnamani, Abuja
United Bank for Africa (UBA) Plc, said it has successfully raised N250 billion through a highly oversubscribed rights issue, marking a huge step in its on-going capital raise programme aimed at meeting the Central Bank of Nigeria’s (CBN) new minimum capital requirements for commercial banks with international licenses.
UBA, in its 2024 Annual Report released during its Annual General Meeting in Abuja on Friday, announced that the rights issue, which offered 6.84 billion ordinary shares of 50 kobo each at N35 per share to existing shareholders, was oversubscribed by N11.6 billion (4.8%) and received full approval from the CBN.
The bank’s chairman, Tony Elumelu, described the development as a strong vote of confidence from shareholders and a key milestone in the bank’s long-term growth strategy.
“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 half decades of impressive performance,” Elumelu said.
The move comes as part of the bank’s strategy to comply with the CBN’s directive issued in March 2024, which requires international commercial banks to raise their minimum capital base to N500 billion in share capital and premium by March 2026.
UBA chairman said it expects to complete the final tranche of the capital raise in the third quarter of 2025.
Despite the economic headwinds of 2024, including inflationary pressures, exchange rate volatility, and global uncertainties, the bank reported a stellar financial performance.
The Group posted gross revenue of N3.19 trillion and a profit after tax of N767 billion. Total deposits rose by 42% to N24.65 trillion, while its loan book expanded by 35% to N7.51 trillion.
Elumelu attributed the bank’s success to its diverse footprint across 24 countries and four continents, as well as its robust risk management strategy. He also lauded the commitment of the bank’s employees and stakeholders.