Following the distribution of N78.66 billion ($53.4 million) in dividends to UBA Group shareholders in response to the group’s strong 2023 financial performance, Nigerian businessman Tony Elumelu, chairman of UBA Group, Heirs Holdings, and Transcorp Group, announced his intention to reinvest his entire $4 million dividend.
Elumelu, a major African business figure and one of Nigeria’s wealthiest persons, was among the roughly 277,000 UBA shareholders who got dividends yesterday from the group’s N78.66 billion ($53.4) dividend distribution for the 2023 fiscal year. Elumelu got a dividend of N5.85 billion ($4 million) on his 7.43 percent investment in UBA Group, which amounted to 2,542,511,824 shares.
Elumelu, speaking at the group’s 62nd Annual General Meeting (AGM) in Abuja, expressed confidence in UBA’s ability to generate continuing excellent returns and encouraged shareholders to reinvest their dividends in the bank’s future rights offer. He agreed to reinvest 100% of his own dividends.
“I’m advising shareholders, as you get your dividends, reinvest a significant part of it,” Elumelu stated. “My organization and I would invest 100% of the dividends we receive. If we do not do so, we will leave food on the table for those who did not work for it.
During the AGM, UBA Group presented its remarkable 2023 financial performance, confirming the bank’s position as Nigeria’s second-largest lender by assets. UBA’s total assets were N20.65 trillion ($14 billion) as of December 31, 2023.
The group recorded gross earnings of N2.08 trillion ($1.41 billion) and a 100% rise in total deposits from N9 trillion ($6.1 billion) to N18 trillion ($12.2 billion). Elumelu attributed the growth to the UBA team’s dedication and customer-centric attitude.
Shareholders approved the planned rights issue, which will result in the bank issuing 10,800,578,634 new shares, raising its share capital from N17.1 billion ($11.6 million) to N22.5 billion ($15.3 million). While the particular conditions of the rights offering have not been published, Elumelu has revealed plans for a multi-stage execution that will coincide with dividend payments to allow existing shareholders to reinvest.
“One of the resolutions we are proposing is to have rights issues carried out in series,” Elumelu remarked to shareholders. “We are going to have the first one soon, followed by a second one potentially after the half-year interim audit.”
