Union Bank of Nigeria, led by Yetunde Oni, has begun a recapitalisation process following a successful financial performance in the first half of 2024.
Oni revealed this as the bank released its half-year results, which showed a 58.19 percent growth in gross earnings to N333 billion ($209 million), up from N210.5 billion ($132 million) in the same period in 2023. The bank also declared a profit before tax of N79.8 billion ($50 million), up from N66.5 billion ($42 million) last year.
In late March, the Central Bank of Nigeria (CBN) issued an order forcing banks to increase their capital bases. This action furthers President Bola Tinubu’s objective of creating a $1 trillion economy.
Commercial banks with international permission must now enhance their capital base to N500 billion ($314 million), national banks to N200 billion ($126 million), and regional banks to N50 billion ($31 million).
Earlier last year, the CBN disbanded Union Bank’s board and hired new executives, including Yetunde Oni. Under her leadership, the bank has begun the recapitalization process.
Oni stated, “In keeping with the reality of our environment, the bank has begun recapitalization. The CBN’s policy mandates that banks grow their capital to meet regulatory levels by April 2026, depending on their licensing category. This move is about more than just compliance; it’s about improving our financial stability and capitalizing on new market opportunities.
Oni underscored the bank’s commitment to good governance and profitability.
“Our goal is to develop a controlled, compliant, and profitable corporation. We are dedicated to strong governance, regulatory compliance, and long-term profitability. These pillars will not only ensure our financial stability, but will also help us capitalize on emerging market opportunities. “With this focus, I am confident that we will maintain our positive momentum and provide long-term value to our stakeholders,” she added.
