| Tony Elumelu & Oliver Alawuba. |
Shareholders
of Africa’s Global Bank, United Bank for Africa (UBA) Plc, have praised the
board, management and staff of the Bank on the impressive performance recorded
over the past years and especially in 2023, culminating in the payout of
N78.7bn as final dividend for the 2023 financial year.
The
shareholders took turns to express their delight during the bank’s 62nd Annual
General Meeting which was held at the Congress Hall of Transcorp Hotels in
Abuja on Friday.
The
shareholders overwhelmingly approved the Board of Director’s proposal to raise
additional capital through the issuance of securities comprising ordinary
shares, preference shares, convertible and/or non-convertible notes, bonds or
any other instruments in the Nigerian and/or international capital market.
Addressing
shareholders at the event, the Group Chairman, Mr. Tony Elumelu, appealed to
shareholders to participate fully and re-invest their dividends in the bank’s
recapitalisation drive as this will ensure that they continue to enjoy even
higher returns from their investments.
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He
said, “I call on you shareholders to re-invest a substantial part of your
dividends in our rights issues which will be announced soon, as we will be
giving you the first opportunity to own a share in all the countries where we
operate, I am advising shareholders, as you get your dividends, reinvest a
significant part of it. As for my board members and I, we would be investing
100% of the dividends we get, because If we don’t do so, it means we would be
leaving food on the table for others who did not labour for it,” Elumelu
stated.
In
the year under consideration, UBA had declared an interim dividend of N17.1bn
representing a pay-out of 50kobo per share for the first half of 2023, thus
bringing the total dividend for the 2023 financial year to N95.8bn,
representing N2.80 per share.
Surprisingly
and in another first, dividend payouts were received while the meeting was
still on just seconds after the resolution on dividend payments were passed at
the meeting by the shareholders, resulting in open excitement from the
shareholders.
They
also commended the bank’s management over the impressive performance for the
2023 financial year, which resulted in the large payout of dividend to its
investors, and highlighted its thriving business in its African subsidiaries,
which continues to contribute significantly to the Group’s total income.
Alhaji
Mukhtar Mukhtar, one of the shareholders who spoke at the meeting, commended
the Group Chairman, Tony Elumelu, and the Group Managing Director, Oliver Alawuba,
for their concerted effort towards ensuring that the performance of the bank
reached unprecedented heights in the year under consideration.
He
said, “I want to specially commend the management and Board of UBA, especially
the Chairman, Tony Elumelu and the GMD/CEO, Oliver Alawuba, who have been
managing activities of this great institution over the past few years.
“We
are impressed at the results that you have recorded so far, how you have
managed to maintain a well-structured balance-sheet and diversified balance
sheet with total Assets growing to over N20trn. The achievement that the bank
has recorded under your leadership, especially the sterling contributions of
our subsidiaries in Africa deserves accolades,” Muktar stated.
Another
shareholder, Patrick Ajudo, also commended Elumelu for keeping the promise made
to shareholders a few years ago to begin to pay increased dividend.
“Our
Chairman, Tony Elumelu, promised shareholders a few years ago in this same
hall, that he will move from ‘kobo-kobo’ dividends to naira dividends, and he
has kept that promise. We are very excited, because, not only have you kept
that promise, but you have backed it up by even matching the industry
standards. Indeed, we are proud to be associated with such a brand that has
integrity, and we highly commend you for this,” he stated.
Barrister
(Mrs) Adetutu Siyanbola, another shareholder, took time to commend the bank’s
management for its operations over the decades, especially as it celebrates its
landmark 75th year anniversary, praising the gender balance and high female
representation on the bank’s board, which according to her, is a feat worth
emulating by other financial institutions in Africa.
While
commending the GMD for wining several awards in the 2023 financial year, she
expressed satisfaction that the bank did not incur any penalty in the year
under consideration, which meant that UBA had zero infractions and didn’t run
foul of any regulations.
At
the end of the 2023 financial year, UBA recorded an impressive leap in gross
earnings, as it grew from N853.2 billion recorded at the end of 2022 to close
at N2.07tn; representing a strong 143 percent growth; total assets also rose
remarkably by 90.22 percent, to close at N20.65 trillion up from N10.86
trillion in 2022.
Profit
before tax, also grew exponentially by 277 percent, to close at N758billion, up
from N200.88 billion recorded in 2022; while profit after tax (PAT) grew by 257
percent from N170.2 billion in 2022, to N607 billion.
The
Group Managing Director/CEO, Mr. Oliver Alawuba, explained that despite being a
year of significant geopolitical and economic challenges, UBA’s strength, the
effort and dedication of the team, and its leadership in strategic areas such
as innovation and sustainability, helped the bank to grow in a profitable and
sustainable manner,
Looking
ahead, he said, “The outlook is great because we are diversified. Our African
subsidiaries contributed over 55% to the bank’s profit this year, and we will do
more. Already, the Bank entered 2024 from a position of strength, with proven
resiliency, a powerful brand and a strong capital position.
“As
we begin 2024, “execution” will continue to be on the front burner, with an
unrelenting focus on market leadership and excellent customer experience at all
touch points,” Alawuba explained.
United
Bank for Africa is one of the largest employers in the financial sector on the
African continent, with 25,000 employees group wide and serving over 35 million
customers globally. Operating in twenty African countries and in the United
Kingdom, the United States of America, France and the United Arab Emirates, UBA
provides retail, commercial and institutional banking services, leading
financial inclusion and implementing cutting edge technology.