Union Bank, led by Yetunde Oni, begins recapitalization after stellar earnings

Oluwatosin Racheal Alabi -

Key Points:

  • Union Bank of Nigeria begins recapitalization following a 58-percent rise in gross earnings in H1 2024.
  • The Central Bank of Nigeria’s mandate drives Union Bank’s capital increase to meet new regulatory standards.
  • Union Bank focuses on stability, governance, and profitability under CEO Yetunde Oni, positioning for future growth.

Union Bank of Nigeria, led by Yetunde Oni, has started a recapitalization process following a strong financial performance in the first half of 2024.

Oni announced this as the bank released its half-year results, which showed a 58.19-percent increase in gross earnings, rising to N333 billion ($209 million) from N210.5 billion ($132 million) in the same period in 2023. The bank also reported a profit before tax of N79.8 billion ($50 million), up from N66.5 billion ($42 million) in the previous year.

Union bank response to CBN’s directive

In late March, the Central Bank of Nigeria (CBN) issued a directive requiring banks to strengthen their capital bases. This decision supports President Bola Tinubu’s goal of building a $1-trillion economy.

Commercial banks with international authorization must now increase their capital base to N500 billion ($314 million), while national banks need to reach N200 billion ($126 million), and regional banks must achieve N50 billion ($31 million).

Union bank’s recapitalization initiative

Earlier this year, the CBN dissolved Union Bank’s board and appointed new leadership, including Yetunde Oni. Under her guidance, the bank has initiated a recapitalization process.

Oni stated, “In line with the realities of our environment, the bank has started recapitalization. The CBN’s program requires banks to increase their capital to meet regulatory standards by April 2026, depending on their license category. This step is not only about compliance but also about enhancing our financial stability and taking advantage of new market opportunities.”

Oni emphasized the bank’s commitment to maintaining governance and profitability.

“Our focus is on building a controlled, compliant, and profitable organization. We are dedicated to strong governance, regulatory compliance, and sustainable profitability. These pillars will not only secure our financial stability but also help us seize emerging market opportunities. With this focus, I am confident we will maintain our positive momentum and deliver long-term value to our stakeholders,” she added.