News

May 27, 2024

UBA to use rights issue beat recapitalization deadline — Elumelu

UBA

UBA

By Obas Esiedesa

Chairman of United Bank for Africa Plc (UBA), Mr Tony Elumelu, has disclosed his bank’s pathway to meeting the Central Bank of Nigeria, CBN, directive to banks on recapitalize by March 2026, saying the bank would carry out the recapitalization majorly by right issues and private placement.

Speaking to journalists at the end of the bank’s Annual General Meeting in Abuja last week, he stated: “Recapitalization is something UBA will accomplish before the stipulated timeframe, the reason being that we have shareholders who want to re-invest in the bank and we have customers who want to become shareholders of the bank. Remember that UBA operates not just in Nigeria but in 19 other African countries and they have been yearning to become shareholders of the bank.

“We, the board approved and today shareholders supported it that we do private placement and this private placement will give opportunity to our customers and friends across Africa to invest in United Bank for Africa. When all of these investments come in from the rights (issuance) and re-investments by these shareholders, it will be an easy accomplishment”.

Despite strong economic headwind last year, UBA declared gross revenue of N2.1trillion for the year ended December 31, 2023 with profit after tax hitting N607.69 billion during the period.

Speaking at the AGM, the Chairman of the Bank, Mr. Tony Elumelu attributed the performance to the daily hard work put in by its staff that provided “tangible solution to real-world needs, delivering value to consumers, businesses, and government”.