The Executive Director of Finance and Risk Management for United Bank for Africa, Ugochukwu Nwaghodoh, has said that the banking group would meet the new capital requirement before the March 2026 deadline given by the Central Bank of Nigeria.
This disclosure was made by Nwaghodoh at the 75th International Global Media Conference held at the bank’s headquarters in Lagos on Monday, according to the Punch.
He said, “The central bank has said that every bank must have N500bn in pure share capital and that was not necessarily related to the existing shareholder funds. It will strengthen the banking system and the banks in Nigeria will be able to do a lot more in terms of the economy.
“The central bank gave recommendations on how to achieve this, either by raising additional funds, mergers and acquisitions and you can choose not to raise more funds and step down your license to the level where your current capital can support.
“For UBA, we operate with the highest license around, which is an international licence. We have very strong, virile operations across Africa and centres across the world. We are maintaining this route and we are looking at options. We have engaged financial advisers, and we indeed have set in motion the process to get the requisite approval from shareholders.”
According to Nwaghodoh, the firm will on Friday get the approval of shareholders to enable it to raise fresh funds.
“We note, however, that we are committed to achieving this well ahead of the deadline,” he added.
Meanwhile, the Group Managing Director/Chief Executive Officer, Oliver Alawuba, noted “UBA is that bank that investors can look into. In 2023, our capital appreciation was one of the highest on the exchange. For the past two years, our dividend yield has been above 12 per cent and when you look at the bank present in 24 countries, that shows a diversification of income streams but also highlights the unique investment proposition we offer.
“When you invest in UBA shares, you are essentially gaining exposure to the economic potential of 24 different markets. Therefore, it is crucial for us to communicate to Nigerian investors that UBA’s current share price is undervalued, presenting a substantial opportunity for those looking to invest in a bank with a truly global footprint.”
Alawuba projected that UBA’s shares would hit N100 for each unit on the stock exchange.
The UBA GMD added, “All the subsidiaries in Africa are profit-making and all of them are contributing more than 50 per cent of the gross income of UBA and this trend will continue. So, the vision of going into these countries is paying off and will continue to pay off. We will continue to invest in Africa and deepen our market share.
“Our market share in those countries is improving and if you go to some of these countries, UBA is one of the top three banks and they appreciate the contribution of the bank to their economy.”
He said that the Group is committed to investing in new products, services, and digital platforms to enhance customer experiences.
