UBA to finish CBN’s N500 billion capital requirement in Q3 2025 amid enterprise growth plans – Tony Elumelu 

The Chairman of the Board of Administrators, United Financial institution for Africa Plc (UBA), Tony Elumelu, on Friday assured stakeholders that the financial institution will meet the Central Financial institution of Nigeria’s (CBN) N500 billion minimal capital requirement for worldwide business banks by Q3 2025, forward of the deadline.

Elumelu disclosed this throughout the 63rd Annual Common Assembly of the financial institution held on the Transcorp Hilton in Abuja, attended by Nairametrics.

Nairametrics beforehand reported that the CBN had elevated the capital base for business banks with worldwide authorization to N500 billion, and for nationwide banks to N200 billion.

This sweeping monetary reform, introduced on Thursday, March 28, 2024, mandates substantial will increase within the minimal capital base for banks, relying on the scope of their operations.

The coverage directive specifies that business banks with worldwide authorization should now shore up their capital base to N500 billion.

UBA’s Capital Adequacy 

Reacting to the event, Elumelu acknowledged that the minimal capital necessities set by the apex financial institution intention to strengthen the monetary sector and higher place it to assist the actual economic system.

“Banks got till March 2026 to adjust to these new efficiency necessities, with choices together with elevating extra capital, pursuing mergers and acquisitions, or downgrading their licenses to align with present capital ranges,” he added.

• He defined that according to the CBN directive, UBA started its capital elevating actions with its first rights concern in November 2024.

“The rights concern closed in December 2024 with 6.84 billion extraordinary shares of fifty kobo every provided to current shareholders at N35 per share.” 

• He famous that the difficulty was oversubscribed by N11.6 billion (4.8%), and all the quantity of N251.0 billion has been verified and accepted by the Central Financial institution of Nigeria (CBN).

• He added, “The ultimate capital increase is anticipated to be accomplished in Q3 2025, properly forward of the CBN deadline.” 

• He additionally highlighted that the proceeds from the rights concern shall be used to spend money on extra digital applied sciences and enterprise growth, strengthening the financial institution’s seven-and-a-half a long time of spectacular efficiency.

 CEO Feedback on Dividends and UBA’s Income Drive 

In a press interview on the occasion, UBA CEO Oliver Alawuba assured stakeholders that the financial institution would proceed to pay robust dividends to shareholders.

“What we are able to guarantee our shareholders at the moment is that UBA will proceed to pay extra dividends. The overall dividends to be paid for the yr ended December 31, 2024, quantity to N102 billion. And that is just the start,” he added.

• He emphasised that UBA has moved past paying small dividends in Kobo.

“I’m positive our shareholders by no means imagined that UBA would pay a complete dividend of 5 naira in a single yr. 

“Whenever you take a look at the dividend yield, we’re the best amongst our friends—and we are going to proceed to ship on that,” he added.

Concerning shareholder expectations, Alawuba acknowledged that UBA, now current in 24 nations, is closely investing in digital banking, the way forward for the banking sector.

In response to him, these initiatives will drive extra income for UBA, making larger dividend payouts possible within the coming yr.

What to Know Concerning the CBN Requirement 

In response to the CBN round, to satisfy the minimal capital necessities, banks are anticipated to contemplate injecting recent fairness capital by way of non-public placements, rights points, and/or provides for subscription; pursuing mergers and acquisitions (M&As); and/or upgrading or downgrading their license authorization.

Moreover, the round famous that the minimal capital will consist solely of paid-up capital and share premium. It emphasised that the brand new capital requirement won’t be based mostly on shareholders’ funds.

Extra Insights 

Nairametrics beforehand reported that for the yr ended December 31, 2024, UBA recorded a pre-tax revenue of N803.7 billion, a 6% enhance from the N757.6 billion recorded the earlier yr.

Submit-tax revenue for the group surged by 26.14% to N766.5 billion, up from N607.6 billion in 2023.

This represents the best annual revenue ever recorded by the financial institution, solidifying its standing as certainly one of Nigeria’s most constantly performing monetary establishments.

Over the previous two years alone, UBA has reported a cumulative revenue of N1.37 trillion—a pointy distinction to the N570.4 billion it posted over the five-year interval main as much as 2023, in accordance with Nairametrics estimates.