Emuwa: Union Bank Being Positioned as Leading Financial Institution

The Group Chief Executive Officer of Union Bank of Nigeria, Mr. Emeka Emuwa has said the bank is being positioned as one of the Nigeria’s leading financial institutions. Emuwa stated this last week at the Nigerian Stock Exchange (NSE) while addressing capital market stakeholders on the ongoing N50 billion Rights Issue. According to him, the rights issue is one of the key steps being taken to reposition the financial institution.

He said: “This year, the bank is a hundred years old and we would not be here without all our stakeholders including our shareholders. As we prepare to launch into the future, we launched our N50 billion Rights Issue in order to raise the capital we require to grow the business and position the Bank as one of Nigeria’s leading financial institutions.”

In his remarks, the Executive Director, Market Operations and Technology, Mr. Ade Bajomo, the Executive Director of the NSE said: “We are pleased that Union Bank has chosen this platform to inform the market of its N50b Rights Issue. Given that the market is driven by timely, relevant and accurate information, interaction with the market through this forum is very welcome and we encourage the Bank to continue.”

The bank is offering 12.1 billion of 50 kobo each at N4.10 per share to existing shareholders on the basis of five new shares for every seven shares already held as at August 21, 2017. The offer commenced on Wednesday, September 20 and is expected to close on Monday, October 30.

Chapel Hill Advisory Partners Limited is lead issuing house, while FSDH Merchant Bank Limited and Stanbic IBTC Capital Limited are joint issuing houses.

Already, market operators said the N50 billion would boost Union Bank’s performance and deliver good returns to shareholders going forward. The bank recorded improved results for the half year(H1) ended June 30, 2017. Union Bank recorded gross earnings of N73.7 billion, showing a growth of 23 per cent from N60 billion in the corresponding period of 2016. Interest income was boosted by naira devaluation-fueled foreign currency loan book to hit N58.3 billion, up from N44.3 billion.