Tony Elumelu, Chairman of United Bank for Africa Plc (UBA), assured stakeholders that the bank will meet the Central Bank of Nigeria’s (CBN) N500 billion minimum capital requirement for international commercial banks by Q3 2025, ahead of March 2026.
The CBN’s reform, announced on March 28, 2024, raised the capital base to N500 billion for international banks and N200 billion for national banks to strengthen the financial sector.
Speaking at UBA’s 63rd Annual General Meeting in Abuja, Elumelu noted that UBA’s capital-raising began with a rights issue in November 2024, offering 6.84 billion shares at N35 each, which was oversubscribed by N11.6 billion, raising N251 billion, approved by the CBN.
He said, “The final capital raise is expected to be completed in Q3 2025, well ahead of the CBN deadline.”
The funds will support digital technology investments and business expansion.
UBA’s CEO, Oliver Alawuba, promised robust dividends, with N102 billion proposed for 2024, boasting the highest dividend yield among shareholders.
UBA, operating in 24 countries, is investing heavily in digital banking to drive revenue and sustain high dividend payouts. Banks can meet the CBN’s requirements through fresh equity, mergers, acquisitions, or license adjustments, with capital comprising only paid-up capital and share premium, not shareholders’ funds.
WHAT YOU SHOULD KNOW
UBA’s commitment to meeting the CBN’s N500 billion capital requirement by Q3 2025, coupled with its robust dividend policy and digital banking investments, underscores its strategic vision and financial strength.
The bank’s early compliance, successful rights issue, and focus on shareholders make it a leader in Nigeria’s banking sector.
ALSO READ TOP STORIES FROM VERILY NEWS
