UBA Targets Expansion into France, Saudi Arabia After Boosting Capital Base to N355 Billion
United Bank for Africa (UBA), one of Nigeria’s leading tier-one banks, is setting its sights on expanding operations into France and Saudi Arabia following a significant increase in its capital base to N355 billion. This move aligns with UBA’s strategy to meet the Central Bank of Nigeria’s (CBN) new capital requirement and extend its global footprint.
The CBN recently raised the minimum capital requirement for international commercial banks operating in Nigeria to N500 billion. Responding to this regulatory change, UBA launched a rights issue in November 2024. The offering was met with overwhelming enthusiasm, raising N251 billion — a figure that has been officially verified and approved by the apex bank.
Announcing this achievement at the bank’s 65th Annual General Meeting (AGM), UBA Group Chairman, Mr. Tony Elumelu, disclosed that the bank’s capital has now risen to N355.2 billion. He added that plans are underway to raise the remaining N144.8 billion necessary to fully meet the CBN’s threshold later this year. Proceeds from the rights issue, Elumelu said, would be channelled into technological innovation and business expansion efforts both within Nigeria and internationally, reinforcing the group’s legacy of nearly seven decades of strong performance.
“Our success in this capital raising exercise positions UBA to continue its impressive track record,” Elumelu said. “The additional funds will be invested strategically in expanding our footprint and deepening our digital capabilities.”
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UBA’s financial performance in 2024 underpinned the bank’s solid fundamentals. The group recorded a gross revenue of N3.2 trillion and posted a profit after tax of N767 billion. Deposit mobilization remained robust, with total deposits growing by 42% year-on-year — climbing to N24.6 trillion from N17.4 trillion in 2023.
Similarly, UBA’s loan book showed healthy expansion, rising by 35% to N7.5 trillion compared to N5.5 trillion in the previous year. This underscores UBA’s continued commitment to funding economic growth across Nigeria and Africa.
The bank’s balance sheet remains resilient and diversified, closing the year with total assets of N30.3 trillion and shareholders’ funds of N3.4 trillion (approximately $3.2 billion).
Speaking at the AGM, UBA’s Group Managing Director/Chief Executive Officer, Oliver Alawuba, emphasized that the new capital will be deployed toward upgrading the bank’s digital platforms. The goal, he said, is to enhance customer experience and reinforce security.
“Currently, UBA is present in 24 countries, and our ambition is to expand further,” Alawuba said. “France is one of the new markets we are targeting, and expansion into Saudi Arabia is also in the pipeline. To effectively support these expansions, we are investing significantly in digital technology.”
Alawuba also highlighted efforts to improve cybersecurity and safeguard customers’ funds. “One of our key areas of investment is fraud prevention. Customers have already begun to notice significant improvements. With these measures, we are ensuring that every deposit made with UBA is secure and accessible whenever needed.”
With these initiatives, UBA is positioning itself as a stronger, more technologically advanced, and globally competitive bank, ready to serve its growing base of customers across Africa and beyond.
UBA to Expand in France, Saudi Arabia, After Raising Capital Base to N355bn
Nigerian tier-one Bank United Bank of Nigeria, plans to expand to France and Saudi Arabia after raising its capital base to N355 billion as it moves to meet the Central Bank of Nigeria’s new threshold and expand into more countries.
The Central Bank of Nigeria (CBN) has directed lenders to increase the minimum capital requirement for international commercial banks to N500 billion.
UBA’s capital in the year of 2024 was N116 billion. However, a rights issue that was launched in November last year, was oversubscribed, N251 billion and has been verified and approved by the CBN.
“With this success, our new capital is now N355.2 billion. The remaining N144.8 billion required to meet the regulatory threshold will be raised later this year, and the proceeds from the rights issue will be duly invested in additional technologies and Business Growth in Nigeria, across Africa and the globe. This will further strengthen our group’s seven decades of impressive performance,” Group Chairman, Mr. Tony Elumelu said at the 65th Annual General Meeting of United Bank for Africa (UBA).
The UBA group delivered another very strong year, generating gross revenue of N3.2 trillion Naira, and profit after tax of N767 billion.
The bank successfully sustained its deposit mobilization efforts, growing total deposits by 42% to N24.6 trillion, up from N17.4 trillion in the corresponding period of 2023.
Additionally, UBA’s loan book expanded by 35% to N7.5 trillion, up from N5.5 trillion, demonstrating its commitment to fund growth and make a contribution to Nigeria and Africa’s economic transformation.
UBA group maintained a well-structured and diversified balance sheet with total assets and shareholders’ funds closing at N30.3 trillion and N3.4 trillion respectively. For context, the current N3.4 trillion shareholders’ fund is $3.2 billion.
UBA will use the new capital raised to invest in digital platforms and improve customers digital experience with UBA, according to Oliver Alawuba, chief executive officer of UBA at the AGM.
“Today, we are in 24 countries. Someone asked about when we are going to expand our presence. In France, we are going to do that very soon. We’re also expanding to Saudi Arabia, and the only way we can serve all of these countries effectively is through digital technology, which is why we are going to invest more in this area,” Alawuba said.
“We’re also using technology to ensure there’s no fraud in your account. If you’ve noticed, this has improved significantly. We have invested to ensure that any money you deposit with UBA will remain secure. Anytime you access your account, your money will be there.”
