UBA races ahead to hit CBN’s N500 billion target by Q3 2025 as expansion plans gain steam
By Felicia Nwosu
United Bank for Africa Plc (UBA) has set its sights firmly on meeting the Central Bank of Nigeria’s (CBN) revised N500 billion capital threshold for international banks well before the March 2026 deadline, with expectations to wrap up the process by the third quarter of 2025.
Chairman of the bank’s board, Tony Elumelu, gave this assurance during UBA’s 63rd Annual General Meeting, held at the Transcorp Hilton, Abuja, where he addressed shareholders and other stakeholders on the bank’s strategic direction.
The CBN’s UBA races ahead to hit CBN’s N500 billion target by Q3 2025 as expansion plans gain steam, issued on March 28, 2024, demands that banks with international licenses bolster their minimum capital to N500 billion, while those operating nationally are required to maintain a N200 billion base.
This sweeping reform aims to fortify the banking sector and better align it with Nigeria’s broader economic ambitions.
Elumelu emphasized UBA’s commitment to staying ahead of regulatory timelines, noting that the bank kick-started its capital raising efforts with a rights issue launched in November 2024.
He affirmed that the exercise, which concluded in December 2024, saw the offering of 6.84 billion ordinary shares at N35 each to existing shareholders and was oversubscribed by N11.6 billion. The Central Bank has since confirmed and approved the full N251 billion raised.
The Bank’s chairman explained that the remaining fundraising activities are on track to be finalized in Q3 2025, positioning UBA comfortably ahead of regulatory demands. According to Elumelu, funds raised will be invested heavily in advancing the bank’s digital infrastructure and expanding its business footprint, sustaining UBA’s record of steady performance over the past 75 years.
Oliver Alawuba, Group Managing Director and CEO,expressed confidence that shareholders would continue to enjoy growing rewards, highlighting that the bank has moved into an era of stronger dividend payouts.
For the 2024 financial year, the bank is set to disburse a total dividend of N102 billion, a significant milestone he described as “only the beginning.”
Alawuba also pointed out that with UBA’s presence now spanning 24 countries, major investments in digital banking are unlocking new revenue streams that will support even bigger dividends in the years ahead.
He stated that UBA currently offers the highest dividend yields compared to its industry peers and plans to sustain this leadership.
Meanwhile, the CBN’s updated guidelines instruct banks to pursue fresh equity infusions through rights issues, private placements, and public offers, or to explore mergers and acquisitions, while clarifying that the capital requirement is to be made up solely of paid-up capital and share premium, excluding shareholders’ funds.
UBA’s momentum is also reflected in its impressive financial performance. For the year ending December 31, 2024, the group recorded a pre-tax profit of N803.7 billion, a 6 percent increase from the previous year.
Also, post-tax profits climbed even higher, surging by 26.14 percent to N766.5 billion, signaling the bank’s solid footing as it accelerates towards its next growth chapter.
About Author
RECOMMENDED ARTICLES
Comment
No comments found.