United Bank for Africa (UBA) Plc has assured its investors of its capability to meet the new capital base set by the Central Bank of Nigeria (CBN), affirming its commitment to financial stability and growth.
During its 2023 Full Year Investors’ Conference Call held on Friday, UBA’s Group Managing Director/Chief Executive Officer, Oliver Alawuba, conveyed the bank’s confidence in its ability to comply with the CBN’s new capital adequacy requirements within the specified timeframe.
Alawuba highlighted UBA’s current strong position as one of the top capitalised banks and emphasized the bank’s proactive approach to enhancing its capital base through a well-defined strategy. He mentioned that this strategy may include options such as Rights Issue or Private Placement.
“We are confident in our ability to meet the CBN’s capital adequacy requirements and will keep investors informed as we progress,” stated Alawuba. “UBA is very well capitalised with shareholders’ fund in excess of N2tn. We will in due course, raise the required component of capital in line with the CBN directive.”
The CBN recently announced new minimum capital requirements for banks, stipulating a minimum capital base of N500bn for commercial banks with international authorisation.
Meanwhile, UBA reported impressive financial results for the year ended December 31, 2023, with significant growth across key indicators. The bank’s gross earnings soared by 143% to close at N2.08tn, while total assets surged by 90.22% to N20.7tn from N10.9tn in 2022.
Furthermore, UBA’s profit before tax experienced a remarkable growth of 277%, reaching N757.7bn, up from N200.9bn in 2022. Profit after tax also increased substantially by 257% to N607.7bn from N170.2bn in the previous year.
Addressing concerns about Non-Performing Loans (NPLs) risk management, particularly in the challenging African business environment, Alawuba outlined UBA’s proactive strategies, including credit monitoring, loan restructuring, and increased provisioning coverage. The bank aims to maintain NPLs at 4.5% for the full year 2024 to support customers and protect shareholders’ value.
Ugo Nwaghodoh, UBA’s Executive Director, Finance & Risk Management, expressed confidence in the bank’s future performance, highlighting its investments in technology and IT security. He emphasized UBA’s commitment to sustainable growth, strong compliance, and risk management practices.
United Bank for Africa Plc operates in 20 African countries with a presence in key international financial centers including New York, London, Paris, and Dubai.
