… Elumelu says strong financials underscore bank’s global ambition, shareholder commitment
…says bank’s shares 10 times undervalued
United Bank for Africa (UBA) Plc reported robust full-year earnings in 2024 and confirmed it has increased its capital base to N355.2 billion, as the pan-African lender accelerates efforts to meet the Central Bank of Nigeria’s N500 billion minimum capital requirement for international banks.
Speaking Friday at the bank’s 65th Annual General Meeting in Abuja, UBA Chairman Tony Elumelu said the group delivered a profit after tax of N767 billion and gross earnings of N3.2 trillion in 2024—its strongest performance to date.
The bank also saw total deposits surge 42% year-on-year to N24.6 trillion, while its loan portfolio expanded 35% to N7.5 trillion, reflecting increased support for businesses and economies across Africa.
“UBA has maintained a well-structured and diversified balance sheet,” Elumelu said. “We closed the year with total assets of N30.3 trillion and shareholders’ funds of N3.4 trillion, or $3.2 billion. These figures demonstrate the strength, scale, and long-term strategy of our institution.”
In line with regulatory requirements issued by the CBN, UBA launched a rights issue in November 2024, raising N240 billion from existing shareholders—an offer that was oversubscribed, reflecting strong investor confidence. A surplus of N11.6 billion had to be returned.
“Thanks to your unwavering support, our verified capital has now increased from N116 billion to N355.2 billion,” Elumelu told shareholders. “We will raise the remaining N144.8 billion this year, again prioritizing our existing investors.”
Elumelu firmly defended the rights issue strategy over a public offering, positioning it as a deliberate move to protect long-term shareholders from value dilution.
Read also: Shettima extols UBA’s 75 years of dedication to innovative banking
“Our shareholders helped build this institution.
“Why should new investors buy in at a discount and claim a share of N3.3 trillion in retained earnings? We are choosing the selfless route, preserving ownership for those who have grown with us,” he said.
He equally used the occasion to declare that the bank’s shares are “grossly undervalued,” insisting the true value should be “ten times what it is today.”
“The price today does not reflect the real value of this bank. The true value of UBA shares should be at least ten times higher.”
Operating in 24 countries across four continents, UBA serves over 45 million customers and continues to position itself as a bridge between African economies and global markets.
Elumelu credited the bank’s sustained growth to disciplined execution and its expanding regional footprint.
“Our performance is not coincidental—it’s the result of strategy, long-term planning, and consistent investment in technology and talent,” he said.
As part of its strategy to reward shareholder loyalty, UBA declared an interim dividend of N2 per share during the 2024 financial year and has now proposed a final dividend of N3 per share, bringing total payout to N5 per share for the year.
With the recapitalisation plan firmly on track and a balance sheet that reflects both scale and stability, the bank says it is well-positioned for its next growth phase.
“The numbers tell the story,” Elumelu said. “Strong earnings, a growing balance sheet, and a capital base that reflects investor trust. We are building not just for now, but for the next 75 years.”
He added that UBA continues to integrate Environmental, Social and Governance (ESG) into every aspect of its operations planting 4,550 tree seedlings to help offset 212,000 kg of carbon emissions in 2024, and distributed 13,000 books through its Read Africa initiative. These earned the bank multiple awards for innovation, financial inclusion, and sustainability across Africa.
Oliver Alawuba, GMD/CEO praised shareholders for their support, reflecting on the bank’s progress from “kobo-kobo dividends” to today’s record earnings. He emphasized that the next growth chapter will be driven by digital innovation and customer experience.
“The customer is the reason UBA exists,” Alawuba said. “With over 45 million customers globally, the best way to serve them is through advanced digital platforms. That’s what we are raising capital to do.”
He further disclosed that UBA is expanding into France and Saudi Arabia, justifying need for scalable digital infrastructure to support its global ambitions.
Alawuba also announced the rollout of a Customer Fulfillment Center to enhance service and response time, and reinforced UBA’s ongoing investments in fraud prevention and AI-powered banking solutions.
“What you call complaints, we call feedback—and we use it to serve you better,” he said. “Your money is secure. Your experience will keep improving,” he assured customers and shareholders.
