Nigeria’s Tier 1 Bank, United Bank for Africa (UBA) has announced the appointment of 5 new directors in an unprecedented move that surprised some investors. The bank made this announcement in a press release posted in the website of the NSE.
The bank announced that it had appointed the following new directors;
Whilst the bank did not clearly explain why it appointed 5 new directors in its press release it appears the appointment is part of the banks transition plans following the appointment of its new Managing Director, Kennedy Uzoka. Mr Uzoka was in March announced as the replacement to the outgoing Phillips Odozua and is expected to resume August 1 2016. Typically, new CEO’s will want to constitute a new management team that will help actualize their vision for the company. Apart from Mr Odozua two other Executive Directors, Femi Olaloku and Obi Ibekwe will be retiring from the Board effective June 30 and May 31, 2016 respectively.
Kennedy Uzoka has often been viewed as the crowned prince of UBA and had attended several courses over the last few years in preparation for this position. The bank at its strategy session, resolved to deepen its commitment to its pan Africa strategy and accelerate its expansion across the continent. It also claims these appointments are a “visible manifestation of the Group’s strategic intent.” UBA recently announced that it was recapitalizing its foreign entities indicating that the bank is look
By his appointment and introduction of new Executive Directors, shareholders will hope that the bank’s earnings trajectory will improve. When Phillips Oduoza took over as CEO of UBA the share price was at N10.50. It is currently trading at N3.99 and has been up 18% year to date.