United Bank for Africa (UBA) Plc has successfully raised N250 billion through a rights issue that was significantly oversubscribed.
The marked achievement is a major milestone in the bank’s ongoing capital raise program, aimed at meeting the Central Bank of Nigeria’s (CBN) new minimum capital requirements for commercial banks with international licenses.
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, representing a 4.8% oversubscription rate. The CBN has given its full approval for the issue.
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 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 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.
UBA also proposed a final dividend of N3.00 per share for the 2024 financial year, bringing the total dividend to N5.00 per share, in line with its promise of delivering superior returns to shareholders.
Beyond financial growth, the bank restated its commitment to environmental, social, and governance (ESG) principles, aiming to achieve net-zero emissions by 2060 and supporting clients’ transitions to sustainable practices. In 2024, UBA planted over 4,500 tree seedlings and committed between $500 million and $1 billion toward sustainable financing by 2060.
The bank also made gains in diversity and inclusion, raising the percentage of female employees to 48% and expanding its Graduate Management Acceleration Programme to train 1,153 young professionals.
Looking forward, Elumelu expressed confidence in UBA’s ability to remain a leader in the African banking sector. “As we look ahead, our mission remains unchanged, lto be Africa’s global bank, driving innovation, delivering value, and fostering inclusive economic growth across the continent,” he said.