United Bank for Africa (UBA) Plc, one of Africa’s leading financial institutions, has unveiled plans to raise N157.89 billion through a rights issue, a strategic move aimed at boosting its capital base and supporting its ambitious expansion initiatives across the continent.
The disclosure was made public in a notice filed with the Nigerian Exchange (NGX), signed by Godstime Iwenekhai, head of issuer regulation at NGX. The statement confirmed that UBA, through its stockbroker United Capital Securities Limited, submitted an application for the approval and listing of the proposed rights issue.
According to the detailed terms of the offer, UBA intends to issue 3.157 billion ordinary shares of 50 kobo each at a price of N50.00 per share. Existing shareholders will be eligible to purchase one new share for every 13 shares held as of the qualification date of July 16, 2025. This pricing at N50.00 per share represents a premium valuation, which analysts suggest reflects UBA’s strong fundamentals and investor confidence, particularly following its robust recent financial performance.
This rights issue is a critical component of UBA’s broader strategy to enhance its capital adequacy, particularly in line with the Central Bank of Nigeria’s (CBN) ongoing recapitalisation directives for the banking sector. It also builds upon previous capital-raising efforts, including a N239 billion rights issue in November 2024, which was notably oversubscribed.
The timing of this capital raise appears strategically aligned with UBA’s impressive financial results for the first quarter of 2025. The bank delivered a solid performance, reporting a pre-tax profit of N204.27 billion, a substantial 30.65 per cent increase from the same period in 2024. Net profit also appreciated strongly by 33.15 per cent, reaching N189.84 billion, compared to N142.58 billion recorded in Q1 2024. This strong start to the financial year positions the bank favourably to attract investor interest for the rights issue.
Oliver Alawuba, group managing director of UBA, commented on the encouraging results, stating that they reflect the bank’s 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 further added, “Our results this quarter underscore the effectiveness of our focus on core banking operations, prudent risk management, and ongoing investments in customer-centric innovation.”
A key driver of this performance was a notable increase in interest income, which rose by 36.09 per cent year-on-year to N599.83 billion. This was supported by growth in income from loans and advances (up 31% to N260.56 billion) and a jump in income from investment securities (up 44.96% to N291.86 billion), reflecting the high-interest rate environment and the bank’s diversified earning assets.
Ugo Nwaghodoh, executive director, finance and risk management at UBA, provided further insights into the Q1 2025 results, attributing them to the resilience of the bank’s diversified business model and 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,” Nwaghodoh explained.
He highlighted that the double-digit growth in the bank’s core earnings profile was a key feature of the quarter. Profits were underpinned by resilient income derived from lending activities, transaction banking, and fee-based services, all of which demonstrate the strength and sustainability of UBA’s earnings engine. The bank also recorded healthy non-interest income, led by fees and commissions, further diversifying its revenue streams.
Looking ahead for the remainder of the 2025 financial year, Nwaghodoh expressed confidence in the bank’s resilience. “Our balance sheet remains solid, underpinned by conservative risk management and sustained investment in scalable digital infrastructure,” he stated.
He affirmed that these strong foundations position UBA well to scale ongoing market volatility and macroeconomic headwinds, while continuing to deliver consistent returns and long-term value for its shareholders. The capital raised from this rights issue is expected to further strengthen these foundations, enabling UBA to capitalise on growth opportunities across its extensive African footprint and potentially in new markets.
