By Tochukwu Bliss, Abuja
Shareholders of United Bank for Africa (UBA) Plc, have praised the board, management and staff on the impressive performance recorded over the past years, culminating in the payout of N78.7billion as final dividend for the 2023 financial year.
The shareholders took turns to express their delight during the bank’s 62nd Annual General Meeting (AGM), which was held at the Congress Hall of Transcorp Hotels in Abuja on Friday, according to the bank’s statement.
The shareholders unanimously 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.
Speaking at the AGM, the Group Chairman, 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.
Mr. Elumelu was quoted as saying: “I call on you shareholders to re-invest a substantial part of your dividends in our rights issue, 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.”
In the year under consideration, UBA had declared an interim dividend of N17.1billion 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 N95.8billion, representing N2.80 per share.
Indeed, dividend payouts were received while the meeting was still on just seconds after the resolution on dividend payments was passed at the meeting, resulting in open excitement from the shareholders.
…the efforts 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.
Shareholders pour encomiums
Mukhtar Mukhtar, a shareholder, 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: “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 N20trillion. The achievement that the bank has recorded under your leadership, especially the sterling contributions of our subsidiaries in Africa deserves accolades.”
Another shareholder, Patrick Ajudo, also lauded Mr. Elumelu, saying: “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.
Mrs Adetutu Siyanbola, another shareholder, also applauded the bank’s management for its operations over the decades, especially as it celebrates its landmark 75th year anniversary, and praised the gender balance and high female representation on the board, saying it is worth to emulate.
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 N2.07trillion; representing a strong 143% growth; total assets also rose remarkably by 90.22%, to close at N20.65 trillion up from N10.86 trillion in 2022.
Profit before tax, also grew exponentially by 277%, to close at N758 billion, up from N200.88 billion recorded in 2022; while profit after tax (PAT) grew by 257% from N170.2 billion in 2022, to N607 billion.
The GMD/CEO, Mr. Alawuba, explained that despite being a year of significant geopolitical and economic challenges, UBA’s strength, the efforts 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.”
