• Fri. Dec 13th, 2024

UBA To Meet Recapitalization Deadline Through Rights Issue, Says Elumelu

United Bank for Africa Plc (UBA) plans to meet the Central Bank of Nigeria’s (CBN) recapitalization directive by March 2026 primarily through rights issues and private placement, according to Chairman Mr. Tony Elumelu.

Speaking at the bank’s Annual General Meeting in Abuja, Elumelu outlined the bank’s strategy to comply with the CBN’s requirements ahead of the deadline. “Recapitalization is something UBA will accomplish before the stipulated timeframe,” he said. “We have shareholders eager to re-invest in the bank and customers wanting to become shareholders. UBA operates in 19 African countries, and many of our customers across these regions have expressed a desire to invest in the bank.”

Elumelu emphasized the board’s approval of a private placement, which shareholders also supported at the AGM. This move will allow customers and friends across Africa to invest in UBA, facilitating the bank’s recapitalization process. “When all these investments come in from the rights issuance and re-investments by these shareholders, it will be an easy accomplishment,” he added.

Despite economic challenges last year, UBA declared a gross revenue of N2.1 trillion for the year ending December 31, 2023, with a profit after tax of N607.69 billion. Elumelu attributed this robust performance to the dedication of UBA’s staff, who consistently provided tangible solutions to real-world needs, delivering value to consumers, businesses, and governments.

The recapitalization plan through rights issues and private placements demonstrates UBA’s commitment to maintaining its financial health and expanding its shareholder base across the continent. With strong support from existing shareholders and growing interest from new investors, UBA is well-positioned to meet the CBN’s requirements and continue its growth trajectory.

Key Highlights include:
– Recapitalization Strategy: UBA plans to use rights issues and private placement to meet the CBN’s recapitalization directive by March 2026.
– Shareholder and Customer Involvement: The strategy leverages reinvestment by existing shareholders and new investments from customers across 19 African countries.
– Financial Performance: Despite economic headwinds, UBA reported N2.1 trillion in gross revenue and N607.69 billion in profit after tax for 2023.
– **Commitment to Growth:** UBA aims to enhance its financial stability and expand its investor base through strategic recapitalization efforts.

Elumelu’s confidence in UBA’s ability to meet the recapitalization deadline underscores the bank’s strong position in the African banking sector and

its commitment to fostering economic growth and stability across the continent. As UBA moves forward with its recapitalization plans, the bank is set to strengthen its capital base, ensuring it remains a leading financial institution in Africa.

Hyacinth Beluchukwu Nwafor

Hyacinth Beluchukwu Nwafor is a seasoned journalist and the CEO/Founder Belch Digital Communications, publishers of Hybrid News Nigeria.

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