Recapitalisation: UBA Seeks NGX Approval For N157.89bn Rights Issue

United Bank for Africa (UBA) Plc has disclosed plans to raise N157.89 billion through a rights issue.

This was contained in a notice on the Nigerian Exchange (NGX) and signed by head of Issuer Regulation at NGX, Godstime Iwenekhai. The statement revealed that UBA, through its stockbroker United Capital Securities Limited, submitted an application for the approval and listing of a proposed rights issue worth N157.89 billion.

According to the details, the bank plans to issue 3.157 billion ordinary shares of 50 kobo each at N50.00 per share, with existing shareholders eligible to purchase one new share for every 13 shares held as of July 16, 2025.

This strategic move aims to strengthen UBA’s capital base, support its expansion plans across Africa, and enhance its market presence.

Analysts stated that with a strong Q1 2025 performance, including solid growth in core earnings, the bank appears well-positioned to attract investors’ interest.

UBA delivered solid results in the first quarter of 2025, posting a pre-tax profit of N204.27 billion, up 30.65 per cent from the same period in 2024. Net profit also grew strongly by 33.15 per cent, reaching N189.84 billion, compared to N142.58 billion in Q1 2024.

Speaking on the results, group managing director, UBA. Oliver Alawuba said, the bank is on a solid start for the 2025 financial year which, reflects its disciplined execution of its strategy and the sustained momentum of the business model of driving strong earnings growth, maintaining robust asset quality, and expanding market share.

He said, “Our results this quarter underscore the effectiveness of our focus on core banking operations, prudent risk management, and ongoing investments in customer-centric innovation.”

Also, the executive director, Finance and Risk Management, UBA, Ugo Nwaghodoh, explained that the Q1 2025 results reflects the resilience of the bank’s diversified business model as well as the disciplined execution of its strategy.

“We maintained strong cost discipline, keeping operating expense growth below the average inflation rate. This enabled operating income growth to outpace expenses, contributing to positive operating leverage and strong bottom-line growth,” he stated.

Nwaghodoh added that the double-digit growth in the bank’s core earnings profile is a key highlight of the quarter, with profits underpinned by resilient income from lending, transaction banking, and fee-based services demonstrating the strength and sustainability of UBA’s earnings engine.

On his projections for the rest of the 2025 financial year, he said, “Our balance sheet remains solid, underpinned by conservative risk management and sustained investment in scalable digital infrastructure.

“These foundations position us well to navigate ongoing market volatility and headwinds, while continuing to deliver consistent returns and long-term value for our shareholders.”