UBA shareholders push authorised share capital to N7.5bn

Managing Director, Tony Elumelu however, explained that the bank has no intention of returning to the capital market soon. He said the increase in authorized capital was to enable UBA take advantage of opportunities in the banking industry.

He also assured the shareholders that the bank would not do share reconstruction afterwards.

"The 12 billion shares we had before was done over six years ago and we had exhausted

11.5 billion of that. It’s just for future contingencies; we are not in any rush to go to the market. Of all leading banks in this country, UBA has almost 50 percent of the shares of other banks," he said.

Shareholders who spoke at the AGM commended the Bank’s performance in the last financial year even as they urged the board and management to work harder in order to improve on the bank’s earnings capabilities.

Faruk Umar, noted UBA’s rising profile in the stock market, just as he commended the board for paying dividends promptly.

He said, "UBA has not diluted our shareholdings. The current share price of N51.00 has put other banks on their toes; we commend the board for the first quarter result and for not contravening any of the Central Bank of Nigeria (CBN) rules last year. But we hope the directors will give us dividend next year".

Another shareholder, Bisi Bakare also noted the board’s ability to hold the AGM, three months after the end of the last financial year.

National coordinator of independent shareholders association of Nigeria (ISAN), Sunny Nwosu would however have the CBN and Nigerian Deposit Insurance Corporation (NDIC) pay forbearance to the Bank for taking over some of the failed banks in the country.

The bank had acquired the private sector deposits of the liquidated Trade Bank, City Express Bank, Metropolitan Bank and Afex Bank, which has helped bring much needed relief to depositors of these institutions and is part of the bank’s efforts to lead the way in increasing public’s confidence in the nation’s burgeoning financial sector.

Chairman, Ferdinand Alabraba told shareholders that, the bank’s balance sheet size stood at N1.64 trillion, up 56.2 percent from last year’s figure of N1.05trillion. The bank’s deposit base also grew from N776 billion to N905 billion during the same period, representing 25.3 percent growth rate.

Profit before tax and exceptional items totaling N29.5 billion for the financial year ended September 30, 2007. The figure showed an increase of 115 percent compared with N12.8 billion recorded in 2006 (18 months period).

Also, the directors pushed dividends to shareholders by 20 percent to N1.20 per share this year.

"Your bank’s sterling performance for the year 2006/2007 financial year has established UBA as the most profitable bank in the industry today. It also consolidated our leadership of the financial services sector in terms of reach and product innovation", he said.

He submitted that global and regional expansion will remain a key part of the bank’s strategy to enable us strengthen our national and regional dominance and to enable us ramp up our global presence.