Mr Ogochukwu Nwaghodo, Executive Director, Finance and Risk Management, United Bank for Africa (UBA), says the bank plans to get recapitalisation approval from its shareholders by Friday, May 24.
Nwaghodo said this on the sideline of a global news conference to announce the 75-year anniversary of the bank in Lagos.
Speaking at the conference on the bank’s 75th anniversary in Lagos, Nwaghodo said that the move was essential to meet regulatory requirements.
The News Agency of Nigeria (NAN) reports that the Central Bank of Nigeria (CBN) on March 29 directed commercial banks in the country with international authorisation to shore up their capital base to N500 billion and national banks to N200 billion.
Similarly, non-interest banks with national and regional authorisation will increase their capital to N20bn and N10 billion respectively.
The recapitalisation exercise expected to commence from April 1 through March 31, 2026, is to help the country to attain its one trillion-dollar economy target.
Nwaghodo explained that UBA was already engaging financial advisers and had set a motion for requisite approval from the shareholders on its recapitalisation.
He noted that the bank is committed to achieving the mandate, being a commercial bank in Nigeria with international authorisation and operating with the highest licence for financial institutions.
According to him, the CBN’s recapitalisation policy is a welcome development, because it will strengthen the banking system to contribute to the development of the country towards meeting the one trillion dollars economy target by the government.
In his contribution, Mr Oliver Alawuba, Group Managing Director, UBA, said that the bank was one that investors desire and as such can raise its new capital base.
Alawuba hinted that UBA price share appreciation is one of the highest in 2023 on the Nigerian Exchange Ltd. (NGX), while the Bank’s dividend yield in the past two years has been above 12 per cent.
He noted that UBA having recorded presence in 24 countries also has a very strong diversification of income streams.
According to him, as investors buy into UBA shares, they are buying shares for the 24 countries and beyond where the bank is, which cushions their investment from the risks in any of the countries.
The general managing director revealed that if the bank accesses opportunities that come up in other countries where it is not present and buys into it, it will take it up and not be deterred by cross-border challenges.
“Nigerians must know that UBA is offering so many opportunities and treasuries through its investment portfolio and is committed to connecting Africa to the world. We cannot develop Africa alone; we need parties and collaboration.
“We have signed different partnership agreements with Fintechs and Telcos because they have what the Bank needs and UBA also has what they need in the journey of developing Africa”, he said.
Alawuba further said that UBA is filling a lot of infrastructural gaps, such as in Agriculture, roads, ports, telecommunications, power, among others, in the countries where it is present.
He noted that the bank’s strategy has been to support the key sectors that are driving the economies in the countries where it is present.
The CEO said: ” In some of these countries, UBA has done a lot in terms of road infrastructure support, improved the capacities of ports and sporting activities, revenue generation in terms of technology to ensure that the Government has enough funding to support the business of the day.
“We are supporting mining, cocoa, cotton and cashew in several countries, and committed to developing Africa and supporting the key sectors that are pushing the African economies.
“We don’t just support businesses, but all the value chains that are tied to the businesses, so that the SME businesses in particular would continue to thrive”.
According to him, this has been reflected in the bank’s financial performance, as presently, the deposit of funds into UBA, stood at N18 trillion, shareholders fund is N2 trillion, while the bank’s customer base is moving up to 45 million across Africa.
UBA started operations in 1949 on Kakawa Street, Lagos Island as the British and French Bank.
Since its inception, the bank has evolved from a modest beginning in Lagos Island to a global financial institution with a presence in 20 African countries and four global financial nerve centres- New York, London, Paris and Dubai.
BRANDPOWER reports that activities of the bank’s 75th year anniversary which kick-started with the news conference would feature other lined-up up events such as the inauguration of UBA’s documentary.
Also, Corporate Social Responsibility (CSR) programmes, HACKATON online programme for youths across the globe, legacy promo and the grand finale in November.
